A ton of drama unfolded in the technology sector recently as OpenAI, the hottest startup of the moment, experienced a leadership shakeup. Sam Altman, the CEO of OpenAI, was abruptly fired only to be reinstated a few days later, leaving many employees in disarray. Following Altman’s removal, several OpenAI employees revolted, threatening to join Microsoft unless Altman was brought back. However, according to a new report, it seems that this threat was merely a bluff to force OpenAI’s board to reinstate Altman. It turns out that most OpenAI employees did not actually want to work for Microsoft due to the loss of significant benefits and perks associated with their current positions.
OpenAI employees breathed a collective sigh of relief when they did not have to jump ship to Microsoft. Business Insider reports that multiple current and former employees have come forward, stating that the decision to join Microsoft was never a serious consideration. Instead, it was a strategic ploy to leverage Altman’s reinstatement as CEO. One of the main reasons employees were reluctant to join Microsoft was the prospect of losing out on a wide range of valuable perks. At OpenAI, base salaries typically start at $300,000, and employees are offered an equity package worth $2 million over a four-year period, among other benefits.
While Microsoft did initially agree to hire OpenAI employees at the same compensation level, this was only a verbal agreement and not legally binding. Some employees were skeptical that Microsoft would honor this agreement and pay departing staff for the equity they would have forfeited by joining the company. Furthermore, the tender offer, which represented a significant equity stake for OpenAI employees, would have been canceled if they had made the move to Microsoft, rendering their equity worthless.
Beyond the loss of financial incentives, many employees expressed a general aversion to working at Microsoft. One employee described the tech giant as the slowest of all major companies, while emphasizing that OpenAI operated in a completely different manner. The threat to join Microsoft was not a reflection of a cult-like devotion to Altman, but rather a pragmatic response to the potential financial consequences for themselves. Should OpenAI’s valuation decline, it would directly impact the financial well-being of its employees.
Meanwhile, Microsoft employees were not thrilled about the prospect of hundreds of OpenAI employees joining their ranks. The company had recently laid off over 10,000 employees, implemented salary freezes, and made deep cuts to bonuses and stock awards. This, understandably, led to discontent among Microsoft employees who felt that their anger was justified. They were already working long hours in a high-stress environment, constantly fearing that they too would be part of the next round of layoffs.
As more details emerge about the recent events at OpenAI, it is likely that we will gain further insights into what transpired during that tumultuous time. For now, employees can breathe a sigh of relief, knowing that they can continue their work at OpenAI with their perks intact. However, the ramifications of this incident may have lasting effects on the relationship between OpenAI and its employees moving forward.
In conclusion, OpenAI employees ultimately did not want to work for Microsoft due to the loss of significant benefits and perks. The threat to join Microsoft was a strategic maneuver to reinstate Sam Altman as CEO. With the incident resolved, employees can continue their work at OpenAI with a renewed sense of stability. However, this episode may have a lasting impact on the dynamics within the company.
