Altman and Nadella are now fighting over AI
Sam Altman and Satya Nadella, once at the helm of a thriving partnership between OpenAI and Microsoft, are increasingly at odds over the terms of their collaboration, according to a recent article published by The Wall Street Journal. The CEOs have differing views on the computing power Microsoft provides to OpenAI, the access OpenAI gives Microsoft to its models, and whether OpenAI’s AI systems will soon achieve humanlike intelligence.
Their partnership, which began with a chance meeting in 2018, has been instrumental in driving the modern AI boom. Microsoft invested $1 billion in OpenAI in 2019, gaining exclusive access to its technology, while OpenAI built the groundbreaking ChatGPT, which accumulated over 500 million weekly users. Microsoft’s investment helped transform it into a leader in the AI space, with its share price tripling.
Tensions have risen as OpenAI seeks to restructure into an independent for-profit company, a move Microsoft could effectively block. If the conversion doesn’t happen by the end of the year, OpenAI could lose tens of billions of dollars. Conversely, OpenAI’s board can trigger a clause preventing Microsoft from accessing its most cutting-edge technology.
Nadella has prioritized developing ChatGPT rival Copilot and hired Mustafa Suleyman, a former Google DeepMind co-founder, to build models that would reduce Microsoft’s dependence on OpenAI. Suleyman’s team began working on a large language model to rival OpenAI’s GPT-4, but the project faced challenges, and Microsoft extended its reliance on OpenAI.
A key area of contention is OpenAI’s development of models with humanlike intelligence. The companies’ agreement gives OpenAI’s board the power to change its relationship with Microsoft once this milestone is achieved. Altman has expressed confidence in achieving this soon, while Nadella has dismissed the idea as “nonsensical benchmark hacking.”
OpenAI is seeking more computing power from Microsoft, including access to top-of-the-line chips. Microsoft has responded by loosening its exclusivity restrictions but maintains it is providing everything it can. The companies were in negotiations for a data-center project, but Microsoft put it on hold after Altman’s brief ousting.
In a recent development, Altman announced a potential $500 billion investment in Stargate, a project that closely resembles what he had hoped to accomplish with Nadella. The investment, anchored by SoftBank and Oracle, underscores the growing divergence between the two CEOs as they prepare their companies for independent futures.