Open AI in ‘serious conversations’ to prevent employee withdrawal: report

Artificial intelligence firm OpenAI is facing “intense discussions” to keep the ship afloat, with staff standing down if it fails to reinstate ousted CEO Sam Altman.

According to Bloomberg, an internal memo from OpenII's vice president of global affairs, Anna Macanju, revealed that the company was in “intense discussions” with management, Altman, and newly appointed interim CEO Emmett Shear to unify the company. “They are not ready to give us a final response this evening,” Makanju wrote.

The memo comes days after Altman was ousted in a boardroom coup amid turmoil at OpenAI, before being tapped to form an “advanced AI research group” with company founder Greg Brockman by the company's biggest investor, Microsoft.

With more than 90% of the company's 770 employees threatening to quit and follow Altman to his new job, Reuters reported on Monday that some of the firm's investors are exploring legal options. Meanwhile, investors including Thrive Capital, Kholsa Ventures and Tiger Global Management are trying to get Altman to return to OpenAI, and Microsoft has said it will not oppose the move.

OpenAI management is being investigated.

Microsoft has attached conditions to Altman and Brockman's future return, including the resignation of OpenAI's current board and a restructuring of governance to avoid a repeat of last week's turmoil, according to unnamed sources reported by Bloomberg.

OpenAI uses an unusual not-for-profit governance structure that empowers the board to withstand pressure from investors, a security measure originally intended to ensure that the board is used for “human” purposes rather than allowing escapist development of AGI.

That structure has come under scrutiny following the events of last week, when Microsoft CEO Satya Nadella told CNBC, “At this point, I think it's very clear that something needs to change around the management.”

“We want to partner with OpenAI and we want to partner with Sam,” Nadella said in an interview with Bloomberg TV, emphasizing that Microsoft shares hit a high on Monday following news of Altman's move to the company. “Sam is working with Microsoft wherever he is,” Nadella added.