Microsoft's Housing Plan For OpenAI Staff Paused Following Sam Altman's CEO Reinstatement: Report

In light of recent leadership changes at OpenAI, Microsoft Corp. MSFT has been readying its San Francisco offices to accommodate OpenAI employees. However, with Sam Altman reclaiming his CEO position at OpenAI, this plan may have hit a roadblock.

What Happened: Microsoft had been preparing to host OpenAI staff in its San Francisco LinkedIn offices following the sudden removal of Altman as CEO, as per multiple media reports, reported Business Insider.

Microsoft’s CEO Satya Nadella had roped in Altman to head a new AI research team in the wake of his removal. The tech behemoth, which has invested more than $10 billion in OpenAI and holds around 49% of the AI firm, was all set to facilitate the OpenAI team’s move, according to a source cited by Axios.

Microsoft had even begun arranging MacBook laptops and training clusters to ensure a seamless transition for the staff. The company’s HR and legal teams were also ready to address hiring and onboarding issues, sources told CNBC and Axios.

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However, Altman’s surprise announcement of his return as OpenAI’s CEO, supported by Nadella, might put an end to the planned move. Altman stated his intention to further strengthen OpenAI’s partnership with Microsoft.

Why It Matters: Prior to these developments, Microsoft’s decision to hire OpenAI employees and match their pay had caused discontent among its existing workforce. The move came amid layoffs and salary freezes, which led to perceived disparities among Microsoft's staff.

In addition, Microsoft, being OpenAI’s largest investor, had been planning management changes at OpenAI to prevent being blindsided by major strategic shifts. The proposed changes included an expansion of OpenAI’s board and an elevation of the qualifications needed for board members.

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