Despite Microsoft CEO Satya Nadella's previous hints at wanting a board seat at OpenAI, the company's unusual governance structure, where its for-profit arm is governed by a non-profit board, is designed to keep the company focused on its mission of building AI for humanity's benefit. Nadella and other investors had pushed for the reinstatement of OpenAI cofounder and CEO Sam Altman, who was fired and then returned to the company within a week.
Key takeaways:
- OpenAI's new board is not planning to offer board seats to outside investors, including Microsoft, Thrive Capital, and Khosla Ventures, despite these companies being some of the biggest backers of OpenAI.
- Microsoft is OpenAI's largest backer, having invested over $10 billion in the company. However, Microsoft CEO Satya Nadella's hints at wanting a board seat are unlikely to materialize.
- The new board of OpenAI will initially consist of former treasury secretary Larry Summers, former Salesforce co-CEO Bret Taylor, and Quora founder Adam D'Angelo, with plans to expand to a nine-person board.
- OpenAI has an unusual governance structure, where its for-profit arm is governed by a non-profit board, aimed at keeping the company focused on its mission of building AI for the benefit of humanity.