This was handled so very, very poorly. Frankly it's looking like Microsoft is going to come out of this better than anyone, especially if they end up getting almost 500 new AI staff out of it (staff that already function well as a team).
> In their letter, the OpenAI staff threaten to join Altman at Microsoft. “Microsoft has assured us that there are positions for all OpenAI employees at this new subsidiary should we choose to join," they write.
> Microsoft is going to come out of this better than anyone
Exactly. I'm curious about how much of this was planned vs emergent. I doubt it was all planned: it would take an extraordinary mind to foresee all the possible twists.
Equally, it's not entirely unpredictable. MS is the easiest to read: their moves to date have been really clear in wanting to be the primary commercial beneficiary of OAI's work.
OAI itself is less transpararent from the outside. There's a tension between the "humanity first" mantra that drove its inception, and the increasingly "commercial exploitation first" line that Altman was evidently driving.
As things stand, the outcome is pretty clear: if the choice was between humanity and commercial gain, the latter appears to have won.
"I doubt it was all planned: it would take an extraordinary mind to foresee all the possible twists."
From our outsider, uninformed perspective, yes. But if you know more sometimes these things become completely plannable.
I'm not saying this is the actual explanation because it probably isn't. But suppose OpenAI was facing bankruptcy, but they weren't telling anyone and nobody external knew. This allows more complicated planning for various contingencies by the people that know because they know they can exclude a lot of possibilities from their planning, meaning it's a simpler situation for them than meets the (external) eye.
Perhaps ironically, the more complicated these gyrations become, the more convinced I become there's probably a simple explanation. But it's one that is being hidden, and people don't generally hide things for no reason. I don't know what it is. I don't even know what category of thing it is. I haven't even been closely following the HN coverage, honestly. But it's probably unflattering to somebody.
(Included in that relatively simple explanation would be some sort of coup attempt that has subsequently failed. Those things happen. I'm not saying whatever plan is being enacted is going off without a hitch. I'm just saying there may well be an internal explanation that is still much simpler than the external gyrations would suggest.)
In hindsight firing Sam was a self-destructing gamble by the OpenAI board. Initially it seemed Sam may have committed some inexcusable financial crime but doesn't look so anymore.
Irony is that if a significant portion of OpenAI staff opt to join Microsoft, then Microsoft essentially killed their own $13B investment in OpenAI earlier this year. Better than acquiring for $80B+ I suppose.
>, then Microsoft essentially killed their own $13B investment in OpenAI earlier this year.
For investment deals of that magnitude, Microsoft probably did not literally wire all $13 billion to OpenAI's bank account the day the deal was announced.
More likely that the $10b to $13 headline-grabbing number is a total estimated figure that represents a sum of future incremental investments (and Azure usage credits, etc) based on agreed performance milestones from OpenAI.
So, if OpenAI doesn't achieve certain milestones (which can be more difficult if a bunch of their employees defect and follow Sam & Greg out the door) ... then Microsoft doesn't really "lose $10b".
There's acquihires and then I guess there's acquifishing where you just gut the company you're after like a fish and hire away everyone without bothering to buy the company. There's probably a better portmanteau. I seriously doubt Microsoft is going to make people whole by granting equivalent RSUs, so you have to wonder what else is going on that so many seem ready to just up and leave some very large potential paydays.
I feel like that's giving them too much credit; this is more of a flukuisition. Being in the right place at the right time when your acquisition target implodes.
While Activision makes much more money I imagine, acquiring a whole division of productive, _loyal_ staffers that work well together on something as important as AI is cheap for 13B.
If the change in $MSFT pre-open market cap (which has given up its gains at the time of writing, but still) of hundreds of billions of dollars is anything to go by, shareholders probably see this as spending a dime to get a dollar.
> In hindsight firing Sam was a self-destructing gamble by the OpenAI board
surely the really self-destructive gamble was hiring him? he's a venture capitalist with weird beliefs about AI and privacy, why would it be a good idea to put him in charge of a notional non-profit that was trying to safely advance the start of the art in artificial intelligence?
> Frankly it's looking like Microsoft is going to come out of this better than anyone
Sounds like that's what someone wants and is trying to obfuscate what's going on behind the scenes.
If Windows 11 shows us anything about Microsoft's monopolistic behavior, having them be the ring of power for LMM's makes the future of humanity look very bleak.
They might not be able to if the legal department is involved. Both in the case of maybe-pending legal issues, and because even rich people get employment protections that make companies wary about giving reasons.
I said nothing contrary to this. I'm not sure what your goal is with this comment. If anything is implied in "even rich people," it's contempt for them, so I'm clearly on the pro-making legal protections more accessible side.
> it's looking like Microsoft is going to come out of this better than anyon
Didn't follow this closely, but isn't that implicitly what an ex-CEO could have possibly been accused off ie. not acting in the company's best interest but someone else's? Not unprecedented either eg. the case of Nokia/Elop.
That's because they're the only adult in the room and mature company with mature management. Boring, I know. But sometimes experience actually pays off.
I'm assuming it's a combination of researchers, data scientists, mlops engineers, and developers. There are a lot of different areas of expertise that come into building these models.
> In their letter, the OpenAI staff threaten to join Altman at Microsoft. “Microsoft has assured us that there are positions for all OpenAI employees at this new subsidiary should we choose to join," they write.