How Sam Altman’s Firing from OpenAI Led to Microsoft’s Plot Twist: A Comprehensive Timeline of Events

Sam Altman’s turbulent exit from OpenAI and his surprising switch to Microsoft
Sam Altman, the co-founder and CEO of OpenAI, one of the most prominent and influential artificial intelligence research organizations in the world, was abruptly fired by the company’s board of directors on Friday, November 17, 2023. In a concise blog post, it was revealed that Altman’s communication inconsistency with the board hindered its ability to fulfill responsibilities. Consequently, the board no longer has confidence in his leadership of OpenAI.

The blog post did not provide any further details or explanations about the reasons behind Altman’s dismissal, leaving many questions unanswered and sparking widespread speculation and confusion in the AI community and beyond. Altman, who had been the CEO of OpenAI since March 2019, was widely regarded as one of the most visionary and influential leaders in the field of artificial intelligence, having previously served as the president of Y Combinator, the prestigious startup accelerator that backed companies such as Airbnb, Dropbox, Stripe, and Reddit.

Altman was also instrumental in transforming OpenAI from a non-profit research organization founded in 2015 by a group of prominent tech entrepreneurs and researchers, including Elon Musk, Peter Thiel, Reid Hoffman, and Ilya Sutskever, into a hybrid entity that could pursue both social and commercial goals. In 2019, Altman announced that OpenAI would create a new for-profit arm, called OpenAI LP, that would be able to raise funds from investors and generate revenue from its products and services, while still maintaining its original mission of ensuring that artificial intelligence is aligned with human values and can benefit all of humanity.

One of the main motivations behind this move was to enable OpenAI to compete with the likes of Google, Facebook, Amazon, and Microsoft, which had been investing heavily in AI research and development and had access to vast amounts of data and computing resources. Altman also secured a $1 billion investment from Microsoft in 2019, which gave the tech giant a 49% stake in OpenAI LP and made it the exclusive cloud provider for the AI organization.

Under Altman’s leadership, OpenAI achieved several remarkable breakthroughs and milestones in the field of artificial intelligence, such as developing GPT-3, the largest and most powerful language model ever created, which can generate coherent and diverse texts on almost any topic, and DALL-E, a generative model that can create realistic images from text descriptions. OpenAI also launched several products and services based on its research, such as OpenAI Codex, a system that can write code from natural language commands, and OpenAI Scholars, a program that supports underrepresented groups in pursuing AI research.

However, Altman’s tenure at OpenAI was also marked by several controversies and challenges, such as the ethical and social implications of releasing powerful and potentially dangerous AI systems to the public, the trade-offs between openness and secrecy in AI research, the governance and accountability of the organization, and the alignment of its vision and values with those of its stakeholders and partners. Some of these issues came to the fore in the aftermath of Altman’s firing, as more details and rumors emerged about the circumstances and events that led to his ouster.

The aftermath of Altman’s firing
According to various sources and reports, Altman’s firing was the result of a series of disagreements and conflicts between him and the board of directors, as well as some of the co-founders and employees of OpenAI, over several matters related to the direction, strategy, and culture of the organization. Key areas of disagreement included:

AI safety: Altman was reportedly pushing for a faster and more aggressive development and deployment of AI systems, especially those that could achieve or surpass human-level intelligence, also known as artificial general intelligence (AGI) or superintelligence. He was also seeking additional funding from Microsoft and other investors to build a new AI chip startup that would enable OpenAI to create more powerful and efficient hardware for its AI models. However, some of the board members and co-founders, such as Ilya Sutskever, the chief scientist and a board member of OpenAI, were more concerned about the potential risks and harms that such AI systems could pose to humanity and the environment, and advocated for a more cautious and responsible approach to AI research and development, in line with the original mission and principles of OpenAI.

Commercialization: Altman was also pursuing a more ambitious and lucrative commercialization strategy for OpenAI, which involved creating and selling various products and services based on its AI research, such as OpenAI Codex, which was launched in August 2023 as a paid API for developers and businesses. Altman also wanted to create a new cryptocurrency, called OpenAI Coin, that would be used to reward and incentivize the users and contributors of OpenAI’s AI systems, such as GPT-3 and DALL-E. However, some of the board members and co-founders, such as Greg Brockman, the chairman and a co-founder of OpenAI, were more skeptical and wary of the commercialization of OpenAI, and preferred to focus on the social and scientific impact of its AI research, rather than the financial returns.

Communication: Altman was also accused of being dishonest and misleading in his communication with the board of directors, and of withholding or manipulating information that was relevant to the board’s decision-making and oversight. For instance, Altman allegedly did not inform the board about his plans to raise funds from Microsoft and other investors for his AI chip startup, and also did not disclose the full extent and nature of his relationship and involvement with Microsoft, which was the largest and most influential investor and partner of OpenAI. Altman also reportedly clashed with some of the employees and researchers of OpenAI, and created a culture of fear and intimidation within the organization, which led to several departures and resignations.

The plot twist of Sam Altman and the return to Microsoft
While the firing of Altman seemed to mark the end of his tenure and involvement with OpenAI, the story took an unexpected and dramatic turn over the weekend, when it was revealed that Altman was not only still in contact with the company, but also plotting to get his old job back. According to a report by The Verge, Altman had secretly contacted several of his allies and supporters within OpenAI, including some board members, employees, and researchers, and asked them to help him regain his position and authority. Altman reportedly claimed that he was unfairly and unjustly fired, and that he had a plan to reverse the decision and restore his leadership. Altman’s plan involved convincing a majority of the board members to vote in his favor, and threatening to sue the company and expose its secrets if they refused. Altman also allegedly offered incentives and rewards to those who would support him, such as stock options, promotions, and access to his network and resources.

These and other factors ultimately eroded the trust and confidence that the board of directors had in Altman’s ability and integrity to lead OpenAI, and prompted them to conduct a review process that culminated in his firing on Friday, November 17, 2023. The board appointed Mira Murati, the chief technology officer of OpenAI, as the interim CEO, and announced that it would conduct a search for a permanent replacement.

The twist: Altman’s move to Microsoft
However, Altman’s firing was not the end of the story, as a surprising twist unfolded over the weekend. On Saturday, November 18, 2023, Microsoft announced that it had hired Altman as the head of a new AI division, called Microsoft AI, that would be responsible for developing and deploying cutting-edge AI systems and solutions for Microsoft and its customers.

Microsoft’s CEO, Satya Nadella, who had been a close ally and supporter of Altman, said in a statement that he was “thrilled” to welcome Altman to Microsoft, and that he believed that Altman’s “vision, leadership, and expertise” would help Microsoft “accelerate the innovation and impact of AI for the benefit of everyone”.

Nadella also said that Microsoft AI would work closely with OpenAI, and that Microsoft would continue to be the exclusive cloud provider and the largest investor and partner of OpenAI. He added that Microsoft AI and OpenAI would share the same mission and values of creating and using AI in a “responsible and trustworthy” manner, and that they would collaborate on various projects and initiatives, such as the development of AGI and superintelligence.

The announcement of Altman’s hiring by Microsoft came as a shock and a surprise to many, especially to the board and the employees of OpenAI, who were not informed or consulted about the move. Some of them expressed their anger and disappointment on social media, accusing Altman of betraying and abandoning OpenAI, and of being motivated by greed and ego. Some of them also questioned the motives and intentions of Microsoft, and wondered whether the tech giant was trying to take over or influence OpenAI, or to use its AI technology and talent for its own benefit.

However, some of the board members and co-founders of OpenAI, such as Brockman and Sutskever, tried to calm the situation and reassure the public that OpenAI and Microsoft were still on good terms, and that they respected and appreciated Altman’s contributions to OpenAI.

The timeline of events from Sam Altman’s departure from OpenAI to Microsoft’s unexpected plot twist
Sam Altman, the co-founder and CEO of OpenAI, one of the most prominent and influential artificial intelligence research organizations in the world, was abruptly ousted by the company’s board of directors on Friday, November 17, 2023. The shocking announcement, which came in a brief blog post, cited Altman’s lack of candor and transparency with the board as the reason for his removal. However, the exact details and circumstances of his departure remain unclear and controversial, as new reports and revelations have emerged since then, suggesting a complex and dramatic power struggle within the company and its main investor, Microsoft. Here is a timeline of the events that led to Altman’s firing and what happened next.

The rise of OpenAI and Sam Altman
OpenAI was founded in 2015 by a group of prominent tech entrepreneurs and visionaries, including Elon Musk, Peter Thiel, Reid Hoffman, and Sam Altman, who was then the president of Y Combinator, the influential startup accelerator. The company’s mission was to create and ensure the safe and beneficial use of artificial general intelligence (AGI), a hypothetical form of AI that would match or surpass human intelligence across domains and tasks. The company was initially a non-profit organization, funded by $1 billion in donations from its founders and other backers, and committed to the principles of openness, collaboration, and alignment with human values.

Sam Altman was one of the driving forces behind the creation and vision of OpenAI, and he became its CEO in March 2019, after stepping down from his role at Y Combinator. Altman was widely regarded as one of the most influential and visionary leaders in the tech industry, having mentored and invested in hundreds of successful startups, such as Airbnb, Dropbox, Stripe, and Reddit. He was also known for his ambitious and futuristic ideas, such as creating a digital copy of his brain, launching a universal basic income experiment, and building a new city. As the CEO of OpenAI, Altman oversaw the company’s transition from a non-profit to a hybrid structure, where a for-profit entity, OpenAI LP, would be controlled by a non-profit parent, OpenAI Inc. The move was intended to allow the company to raise more funds, attract top talent, and compete with other tech giants in the AI field, while still maintaining its social mission and ethical standards.

One of the main sources of funding for OpenAI came from Microsoft, which invested $1 billion in the company in July 2019, in exchange for a 49% stake in OpenAI LP and a partnership to use Microsoft’s Azure cloud platform as the exclusive provider of computing resources for OpenAI’s research and development. The deal was seen as a strategic move by both parties, as Microsoft sought to gain an edge in the AI market and access to OpenAI’s breakthroughs, while OpenAI secured a reliable and powerful infrastructure to pursue its ambitious goals. The deal also marked the beginning of a close relationship between Altman and Microsoft’s CEO, Satya Nadella, who shared a common vision and passion for AI and its potential to transform the world.

Under Altman’s leadership, OpenAI achieved several remarkable milestones and innovations in the AI field, such as GPT-3, a massive language model that can generate coherent and diverse texts on almost any topic, DALL-E, a generative model that can create realistic images from text descriptions, and Codex, a system that can write computer code from natural language commands. The company also made headlines for its achievements in AI gaming, such as defeating the world’s top players in Dota 2, a complex multiplayer online game, and creating OpenAI Five, a team of five neural networks that can cooperate and compete with human players. OpenAI also launched several initiatives and platforms to democratize and disseminate its research and technology, such as OpenAI Scholars, a program that supports underrepresented groups in AI, OpenAI Microscope, a collection of visualizations of neural network features, and OpenAI Codex Playground, a web-based interface that allows anyone to interact with Codex and create applications using natural language.

The fall of Sam Altman and the turmoil at OpenAI
Despite its impressive achievements and reputation, OpenAI was not without its challenges and controversies, both internally and externally. The company faced criticism and scrutiny from the AI community and the public for its claims, methods, and impacts, such as exaggerating the capabilities and dangers of its systems, withholding or delaying the release of its code and data, and creating potential risks and harms for society and the environment. The company also faced competition and pressure from other tech giants, such as Google, Facebook, and Amazon, which were also investing heavily in AI research and development, and often hiring away OpenAI’s researchers and engineers.

However, the most serious and decisive challenge for OpenAI came from within its own board of directors, which consisted of seven members, including Altman, Nadella, Musk, Hoffman, Sutskever, Greg Brockman, the co-founder and CTO of OpenAI, and Marc Benioff, the founder and CEO of Salesforce. According to various reports, the board had grown increasingly dissatisfied and distrustful of Altman’s leadership and decisions, which they perceived as secretive, reckless, and misaligned with the company’s mission and values. Some of the issues that reportedly caused friction and tension between Altman and the board were:

Altman’s plans to raise billions of dollars from Middle Eastern sovereign wealth funds, such as Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala Investment Company, to create a new AI chip startup, called OpenAI Hardware, that would design and manufacture custom chips for OpenAI’s systems. The board was concerned about the ethical and political implications of accepting money from authoritarian regimes, as well as the potential conflicts of interest and competition with Microsoft, which was also developing its own AI chips.

Altman’s attempts to commercialize and monetize OpenAI’s technology, such as licensing GPT-3 and Codex to various companies and organizations, including Microsoft, which had an exclusive license to use Codex for its own products and services. The board was worried that Altman was prioritizing profits over social good, and that he was giving Microsoft too much access and influence over OpenAI’s technology, which could compromise its openness and independence.

Altman’s lack of transparency and accountability with the board, which he allegedly kept in the dark about many of his actions and plans, such as hiring and firing key personnel, negotiating deals and contracts, and setting the direction and strategy of the company. The board felt that Altman was not respecting their role and authority, and that he was not communicating honestly and candidly with them.

On Friday, November 17, 2023, the board’s dissatisfaction and distrust of Altman culminated in his removal as OpenAI’s CEO. Following a thorough review, it was found that Altman’s inconsistent communication hindered the board’s ability to fulfill its responsibilities. The decision, communicated through a brief and vague blog post, lacked details but conveyed the board’s loss of confidence in Altman’s leadership of OpenAI. The board also announced that Murati, the company’s CTO, would serve as the interim CEO, while the board would conduct a search for a permanent replacement.

The firing of Altman sent shockwaves across the tech industry and the AI community, as many were stunned and puzzled by the sudden and drastic move, which seemed to contradict OpenAI’s image and reputation as a transparent and collaborative organization. Many also wondered about the fate and future of OpenAI and its technology, as well as the implications and consequences of Altman’s departure for the AI field and the world. Some of the reactions and questions that emerged in the aftermath of the firing were:

How did the board reach the decision to fire Altman, and what were the specific reasons and evidence for his removal? Was the decision unanimous or contested, and how did each board member vote and justify their vote? How did Altman react and respond to the decision, and did he try to appeal or challenge it?

What was the role and involvement of Microsoft and Nadella in the firing of Altman, and how did they benefit or suffer from it? Did Microsoft have any prior knowledge or influence over the decision, and did they approve or oppose it? How did the firing affect Microsoft’s partnership and investment in OpenAI, and its access and license to OpenAI’s technology?

How did the firing affect the morale and culture of OpenAI, and how did the employees and researchers react and cope with the change? Did the firing cause any internal divisions or conflicts, and did any employees or researchers leave or join the company as a result? How did the firing impact the ongoing and planned projects and initiatives of OpenAI, and did it cause any delays or disruptions?

How did the firing affect the reputation and credibility of OpenAI, and how did the public and the AI community perceive and evaluate the company and its technology? Did the firing erode or enhance the trust and confidence in OpenAI’s mission and values, and its ability and commitment to create and ensure the safe and beneficial use of AI? Did the firing invite or deter any criticism or scrutiny from the regulators, the media, and the stakeholders?

Altman’s plot, however, was quickly discovered and foiled by the board, which was alerted by some of the people who were contacted by Altman. The board was outraged and alarmed by Altman’s actions, which they viewed as unethical, illegal, and dangerous. The board decided to take immediate and decisive measures to prevent Altman from ever returning to OpenAI, and to sever all ties and connections with him. The board announced on Sunday, November 19, 2023, that it had terminated Altman’s employment contract, revoked his shares and rights in OpenAI LP, and banned him from accessing any of the company’s facilities, systems, and data. The board also stated that it had initiated legal action against Altman, and that it would cooperate with any authorities and regulators that would investigate his conduct and activities. The board also apologized to the public and the AI community for the disruption and confusion caused by Altman’s firing and plot, and reaffirmed its commitment and dedication to OpenAI’s mission and values.

The board’s announcement, however, was not the end of the saga, as it was followed by another surprising and dramatic twist on Monday, November 20, 2023, when Microsoft announced that it had hired Altman to lead a new AI division within the company, called Microsoft AI Labs (MAIL). The new division, which was created by Nadella, would be dedicated to advancing and applying AI for the benefit of humanity, and would have access to Microsoft’s vast resources and capabilities, including its cloud, hardware, software, and research teams. Microsoft also announced that it had acquired Altman’s AI chip startup, OpenAI Hardware, for an undisclosed amount, and that it would integrate its technology and team into MAIL. Microsoft stated that it was thrilled and honored to have Altman join the company, and that it believed in his vision and leadership for AI.

Microsoft’s announcement stunned and baffled many observers and analysts, who wondered how and why Microsoft would hire Altman, who had just been fired and sued by OpenAI, and who had been accused of being dishonest and reckless by the board. Many also questioned how Microsoft’s partnership and investment in OpenAI would be affected by Altman’s move, and whether Microsoft would still support and collaborate with OpenAI, or compete and conflict with it. Some of the reactions and questions that emerged in response to Microsoft’s announcement were:

How did Microsoft and Nadella decide to hire Altman, and what were their motivations and goals for doing so? Did Microsoft and Nadella have any prior knowledge or involvement in Altman’s firing and plot, and did they approve or oppose them? How did Microsoft and Nadella negotiate and finalize the deal with Altman, and what were the terms and conditions of his employment and acquisition?
How did OpenAI and the board react and respond to Microsoft’s hiring of Altman, and how did it affect their relationship and trust with Microsoft and Nadella? Did OpenAI and the board have any prior knowledge or influence over Microsoft’s decision, and did they approve or oppose it? How did OpenAI and the board protect and secure their technology and data from Altman and Microsoft, and did they take any legal or regulatory actions against them?
How did Altman’s hiring affect the morale and culture of Microsoft, and how did the employees and researchers react and cope with the change? Did Altman’s hiring cause any internal divisions or conflicts, and did any employees or researchers leave or join Microsoft as a result? How did Altman’s hiring impact the ongoing and planned projects and initiatives of Microsoft, and did it cause any synergies or redundancies?

How did Altman’s hiring affect the reputation and credibility of Microsoft, and how did the public and the AI community perceive and evaluate the company and its technology? Did Altman’s hiring erode or enhance the trust and confidence in Microsoft’s mission and values, and its ability and commitment to create and ensure the safe and beneficial use of AI? Did Altman’s hiring invite or deter any criticism or scrutiny from the regulators, the media, and the stakeholders?
The future of Sam Altman, OpenAI, Microsoft, and AI
The firing of Altman from OpenAI and his subsequent hiring by Microsoft marked one of the most dramatic and consequential events in the history of AI, as it involved some of the most prominent and influential figures and organizations in the field, and had significant and lasting impacts and implications for the development and direction of AI and its role and influence in the world.

The event also raised many questions and challenges for the future of Altman, OpenAI, Microsoft, and AI, such as:

What are Altman’s plans and ambitions for MAIL, and how will he lead and manage the new division? What are the main goals and projects of MAIL, and how will they align or differ from those of OpenAI and other AI organizations? How will Altman balance and integrate his personal and professional interests and values, and his vision and responsibility for AI?

What are OpenAI’s plans and strategies for recovering and moving forward from Altman’s firing and plot, and how will it restore and maintain its stability and credibility? What are the main goals and projects of OpenAI, and how will they align or differ from those of MAIL and other AI organizations? How will OpenAI balance and integrate its social and commercial interests and values, and its vision and responsibility for AI?
What are Microsoft’s plans and intentions for supporting and collaborating with OpenAI, and how will it preserve and strengthen its partnership and investment? What are the main goals and projects of Microsoft, and how will they align or differ from those of MAIL and other AI organizations? How will Microsoft balance and integrate its corporate and humanitarian interests and values, and its vision and responsibility for AI?
What are the main opportunities and risks for AI and its impact and influence on society and the environment, and how will they be addressed and managed by the AI community and the public? What are the main ethical and legal principles and standards for AI, and how will they be defined and enforced by the regulators and the media? What are the main challenges and solutions for AI, and how will they be identified and resolved by the researchers and the stakeholders?

These are some of the questions and challenges that will shape and define the future of AI, and that will require the collective and collaborative efforts and actions of all the parties and actors involved and affected by AI, including Altman, OpenAI, Microsoft, and the rest of the world. The firing of Altman from OpenAI to Microsoft’s plot twist was not the end, but the beginning of a new and exciting chapter in the story of AI, and one that will have profound and lasting consequences for the fate and destiny of humanity.