Microsoft CEO Satya Nadella has expressed his support for OpenAI’s governance structure, despite the recent ousting of its CEO at the annual meeting in Davos. In November, OpenAI’s CEO, Sam Altman, was temporarily dismissed due to an alleged communication breakdown. This led to a crisis within the startup, with employees threatening to resign and join Microsoft, which has invested billions of dollars in OpenAI. However, Altman was later reinstated by the board, and the process of filling out the board’s membership is currently underway.
During a Bloomberg News event at the World Economic Forum, Nadella stated that he is comfortable with OpenAI’s governance structure and has no issues with it. Altman, speaking at a separate event, expressed his expectation of making progress in the coming months and the new board’s intention to review the governance structure.
As part of their partnership, Microsoft has secured a non-voting observer position on the OpenAI board. However, competition authorities in Europe, Britain, and the United States have started scrutinizing the Microsoft-OpenAI relationship. The terms of their agreement ensure significant profits for Microsoft based on certain conditions.
Nadella highlights the fact that Microsoft does not fully own OpenAI as a pro-competitive distinction of their partnership. He also acknowledges that Microsoft’s investments in computing power and their early bet on OpenAI were highly risky and not conventional.
