Microsoft snatches Sam Altman and former OpenAI colleagues to form its own AI research team

In another twist on the OpenAI saga that raged over the weekend, Microsoft has swooped in and hired Sam Altman and Greg Brockman just after OpenAI confirmed Altman’s firing, CEO Satya Nadella announced in a post on X.

The pair, along with colleagues are joining Microsoft “to lead a new advanced AI research team.” Nadella added that Microsoft “remain[s] committed to our partnership with OpenAI,” but the move looks a giant hedge on that bet. It also means the much of OpenAI’s talent may be moving to Microsoft, which may stall the latter’s progress with its widely-used ChatGPT product.

The appointment was announced just after it was suggested that Altman may return to OpenAI, following his sudden firing on Friday. That was preceded by an outpouring of support for Altman from OpenAI employees, many of whom shared hearts on social media.

In a bit of a surprising development, though, talks between the parties broke down and OpenAI subsequently said that Altman (and co-founder Greg Brockman) would not return, according to reports. Instead, Twitch co-founder Emmett Shear was reportedly appointed as the new CEO.

The story is likely far from over, as the confirmation of Altman’s firing and subsequent hiring by Microsoft raise multiple questions. Microsoft has invested $13 billion and owns a 49 percent stake in the for-profit segment of OpenAI and recently unveiled its Copilot AI assistant that’s powered by OpenAI’s technology.

In addition, OpenAI has an odd “capped-profit” corporate structure with both a for-profit and nonprofit body. And despite Nadella’s words, the partnership with OpenAI will no doubt be affected by Microsoft having its own AI research team — particularly since it will be led by OpenAI’s former CEO.