Microsoft And Other Investors' Seat On OpenAI's Board Seems Unlikely: Report - Microsoft (NASDAQ:MSFT)

The drama that started earlier this month when OpenAI co-founder and CEO Sam Altman was fired from his position might still be far from over.

What Happened: ChatGPT-parent might not offer board seats to Satya Nadella-led Microsoft Corporation MSFT and other investors, including Khosla Ventures and Thrive Capital, reported Reuters, citing a person familiar with the matter.

Thomas Hayes, chairman of hedge fund Great Hill Capital, said, “I do not know that it’s going to be the choice of OpenAI to leave Microsoft off the board,” adding, “Microsoft will have something to say about it, given the amount of money that they have put behind them.”

Hayes also said Nadella’s company won’t benefit from sitting “passively.”

It was previously reported that OpenAI will have a new board with nine people. Bret Taylor, Larry Summers, and Adam D’Angelo will likely be officially confirmed as the first three directors this week.

Among them, D’Angelo would be the only one continuing from the previous board of six that dismissed Altman.

Why It’s Important: Microsoft is one of the biggest supporters of OpenAI, having invested more than $10 billion into ChatGPT-parent. The company has been supporting Altman’s platform since 2019 when it poured $1 billion into it.

Moreover, Nadella supported Altman instantly when this drama started. He also offered Altman and Greg Brockman jobs at Microsoft’s new AI research team, along with their former OpenAI colleagues who chose to resign from the company.

Nadella has previously also said that the way things run at OpenAI will have to change, regardless of where Altman went.

Now, in response to this latest information, a Microsoft spokesperson told Reuters, “We will wait until the board officially says something.”

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