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OpenAI Unlikely to Offer Board Seat to Microsoft and Other Investors
Updated: Jan 5
OpenAI, the owner of ChatGPT, is not expected to offer Microsoft and other investors, including Khosla Ventures and Thrive Capital, seats on its new board, according to a source familiar with the matter.
Last week, OpenAI faced turmoil when its CEO and founder, Sam Altman, was ousted without a detailed cause. However, Altman was later reinstated with the promise of a new board.
The decision not to offer board seats to Microsoft and other investors has raised questions about the future of OpenAI. Thomas Hayes, chairman of hedge fund Great Hill Capital, commented that it remains to be seen whether OpenAI will exclude Microsoft from the board, considering the significant amount of money the tech giant has invested in the company.
The Information first reported that OpenAI's new board will consist of nine members. The three initial directors are expected to be Chair Bret Taylor, former Treasury Secretary Larry Summers and Quora CEO Adam D'Angelo. D'Angelo will be the only remaining director from the previous six-person board that fired Altman.
Microsoft, which has invested over $10 billion in OpenAI, is one of the major backers of the company. Its CEO, Satya Nadella, previously stated that changes in governance at OpenAI were necessary, regardless of Altman's position.
OpenAI, Microsoft and other parties involved have not provided official statements regarding the board composition. However, a Microsoft spokesperson mentioned that they would wait for the board to make an official announcement.
OpenAI is not expected to offer board seats to Microsoft and other investors.
The decision has raised concerns about the future of OpenAI.
The new board is expected to consist of nine members, with three initial directors already identified.
Source: REUTERS