💥 Inside the CHAOS at OpenAI

Welcome, AI enthusiasts

What movie is this from? Just after we sent out our newsletter on Friday, the world of AI began to shake like an actual earthquake. In a shocking statement, OpenAI announced that Sam Altman had been fired as CEO, and the story has continued to develop ever since. In this newsletter we'll go over everything that has happened thus far, and also touch on some other AI news. Let's dive in!

In today’s insights:

• Inside the Chaos at OpenAI

• Microsoft Hires Former OpenAI CEO Sam Altman

• Google Delays Launch of GPT-4 Rival Gemini

Read time: 5 minutes

🗞️ LATEST DEVELOPMENTS

OPENAI
💥 Inside the Chaos At OpenAI

Evolving AI: Here’s a rundown on the chaos that went on at OpenAI over the course of the weekend.

Initial Firing of Sam Altman:

• Sam Altman (Co-Founder OpenAI) received a text from Ilya Sutskever (Co-Founder OpenAI) asking for a meeting.

• During a Google Meet call, Altman was informed by the OpenAI board, excluding Greg Brockman (President & Co-Founder of OpenAI), of his firing.

• Greg Brockman was simultaneously informed about Altman's firing and his own removal from the board but retaining his role in the company.

• Brockman quit from OpenAI in protest and shared his thoughts on the situation on X (formerly Twitter).

Public and Internal Reactions:

• OpenAI published a blog post about the changes.

• The management team at OpenAI was informed, with Mira Murati (CTO OpenAI) being the exception, who knew the night before. Murati was announced as interim CEO shortly after.

• There was a significant outpouring of support for Altman and Brockman, most notably from a lot of OpenAI employees.

Discussions for Altman’s Return.

• Resulting this outpouring, the OpenAI board entered discussions to potentially bring back Altman as CEO after investors were unhappy with this sudden decision.

• Sam expressed ambivalence about returning, seeking significant governance changes.

The Negotiations:

• Altman’s demands to return reportedly required the board to resign and absolve him of any wrongdoing.

• The board initially agreed to resign to facilitate Altman and Brockman's return but later hesitated.

• OpenAI employees showed support for Altman, indicating a potential mass resignation if he started a new company.

• Microsoft, a major investor in OpenAI, remained committed to their partnership despite the turmoil.

Board Dynamics and Resignation Considerations:

• The current board, including Ilya Sutskever, was involved in Altman's ousting, hinting at internal power struggles.

• These power struggles seem to stem from differences in how they view the treatment of their technology; Altman wants it to be available to the general public, while Sutskever treats it with caution and views it as a potential danger to humanity.

• There were active conversations about reinstating Altman, with involvement from Microsoft's CEO Satya Nadella.

• The possibility of the entire board resigning was considered, with candidates like Brett Taylor being discussed for replacement.

• One confirmed new board member is Bret Taylor, former CEO of Salesforce.

Ongoing Negotiations and State of Play:

• Negotiations were slow concerning the composition of the new board.

• Sam Altman kept his options open, including the possibility of returning to OpenAI or starting a new company.

• His tweet "i love the openai team so much" was loved by current interim CEO Mira Murati.

Reinstatement Attempt Fails:

• In a twist that no one saw coming, Twitch co-founder Emmett Shear was announced as the new CEO of OpenAI.

• Mass exodus of employees is expected at OpenAI.

• Only a couple of hours after OpenAI’s new CEO announcement, Sam Altman’s & Greg Brockman’s new plans are announced by Microsoft’s CEO Satya Nadella.

Why This Matters?

OpenAI, the creator of ChatGPT, is one of the biggest companies in the world of AI. Everything that has happened at the company has severely damaged its reputation and seemingly its $80-$90 billion valuation. Not only that, it raises serious questions about what the future of the company will look like, now that there has been a change in leadership and a mass exodus of employees is expected.

MICROSOFT
🤝 Microsoft hires former OpenAI CEO Sam Altman

Evolving AI: A seismic shift as Microsoft welcomes AI pioneers Sam Altman and Greg Brockman

Key Points:

• Sam Altman, ex-OpenAI CEO, onboards with Microsoft.

• Greg Brockman, OpenAI co-founder, to spearhead advanced AI research.

• Shift follows Altman's departure from OpenAI amid board disputes.

Details:

In a surprising pivot, Microsoft embraces former OpenAI CEO, Sam Altman, and co-founder Greg Brockman, post-Altman's exit from OpenAI. Their new roles aim to advance AI research within Microsoft's ecosystem. This move signals Microsoft's intent to deepen its AI capabilities, following its development of custom AI and Arm-based chips, underscoring a strategic push towards self-reliance in AI tech and hinting at future innovations detached from current partnerships.

Why It Matters:

Microsoft's latest coup—a strategic play in the AI arena—may well redefine the future of tech innovation. With OpenAI's ex-leaders at the helm and many colleagues from OpenAI poised to follow, what transformative AI frontiers will we witness under Microsoft's flag?

GOOGLE
🛑 Google Delays Launch of GPT-4 Rival Gemini

Evolving AI: Google puts brakes on its AI model Gemini, reassessing its debut timeline.

Key Points:

• Gemini’s release pushed to early 2024.

• Aiming to surpass GPT-4’s capabilities.

• Strengthening consumer applications first.

• Google leveraging vast proprietary data.

Details:

Amidst the AI race, Google delays its large language model, Gemini, originally set for a 2023 release. Speculation stirs as the tech giant recalibrates, ensuring it can outshine GPT-4. Google's AI, which utilizes TPUv5 chips for enhanced computation, is being fine-tuned to deliver top-notch performance across various applications, including chatbots, text summarization, and code development. With its eyes set on leading the AI revolution, Google remains guarded about its next moves, ensuring Gemini’s power is not just on paper but evident in every interaction.

Our Thoughts:

Does Google's cautious approach to Gemini signify a meticulous perfectionism or a hedge against overpromising? Only time will tell if patience pays in the AI frontier.

🤝 EU: France, Germany and Italy join forces to propose unified AI regulation.

❗️ Meta: Meta disbanded its responsible AI team.

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