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News » Microsoft courts OpenAI amid AI race

Microsoft courts OpenAI amid AI race

Microsoft x OpenAI

WASHINGTON, UNITED STATES — In a strategic move, tech giant Microsoft has extended an offer to hire any OpenAI employees willing to resign following the departure of the artificial intelligence (AI) firm’s former CEO, Sam Altman. 

Altman, who was recently appointed by Microsoft, left OpenAI amidst internal turbulence, which saw over 500 employees sign a petition for the resignation of the remaining board members and Altman’s reinstatement. 

Altman is now back as OpenAI CEO after reaching an agreement “in principle”.

Microsoft’s CTO, Kevin Scott, assured OpenAI staff in an X post that “they have a role at Microsoft that matches their compensation and advances their collective mission.”

This offer underscores the fierce competition for AI experts as tech giants like Amazon, Google, and Meta vie for a larger slice of the burgeoning AI market.

On the other hand, some Microsoft employees were unhappy about the company’s open offer to hundreds of OpenAI staff, stating that the firm conducted layoffs, imposed a salary freeze, and cut its bonus budget this year.

Analysts from Wedbush anticipate a migration of key developers and scientists from OpenAI to Microsoft, led by Altman’s influence. 

“If Microsoft lost Altman he could have gone to Amazon, Google, Apple, or a host of other tech companies craving to get the face of AI globally in their doors,” Wedbush analysts said.

Read more here.

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