Satya Nadella says governance needs to change at OpenAI

By Vijay Anand

Microsoft CEO Satya Nadella on Tuesday (November 21) told CNBC that there is a pressing need for a governance overhaul at OpenAI following the sudden removal of CEO Sam Altman. Nadella stressed the necessity of changes in OpenAI's governance structure, signalling that Microsoft intends to engage in a constructive dialogue with the OpenAI board regarding these modifications.

“At this point, I think it’s very clear that something has to change around the governance,” Nadella told CNBC. He added that Microsoft would have “a good dialogue with their board on that.”

While dispelling concerns about potential long-term damage to OpenAI, Nadella assured that the crucial artificial intelligence research and the partnership with Microsoft would persist. However, uncertainties remain about the future roles of ousted CEO Sam Altman and co-founder Greg Brockman, who served as the company's chairman.

Nadella on Monday announced that Altman, Brockman, and their colleagues would join Microsoft as part of a new AI research group. Despite this, as the day progressed, the clarity on Altman and Brockman's transition to Microsoft became less evident. OpenAI employees, in response, expressed their concerns by signing a letter to the company's board, demanding resignations or indicating their potential departure to join Altman at Microsoft.

Nadella acknowledged that OpenAI employees have the option to either stay in their current roles or transition to Microsoft, stating that Microsoft possesses the capability to continue innovating independently.

“I’m open to both options,” he said during the interview.

The possibility of Altman's swift reinstatement had begun to gain traction over the weekend, with news emerging that a group of prominent investors, including Microsoft, Tiger Global, Thrive Capital, and Sequoia Capital, were actively working to reverse the board's decision. Notably, none of these firms held board seats and were reportedly caught off guard by the sudden developments. In a post on the platform X, Altman expressed his love for the OpenAI team, hinting at a potential desire to return. Greg Brockman, who resigned as chairman alongside Altman's removal, echoed these sentiments by reposting the comment with a heart symbol, a sentiment shared by other OpenAI employees.

Nadella emphasised Microsoft's respect for OpenAI's nonprofit roots and its shared belief in the responsible development and deployment of artificial intelligence.

“We want to make sure that we’re dealing with not only the benefits of technology, but the unintended consequences of the technology from day one, as opposed to waiting for things to happen,” Nadella said.