The Sudden Collapse Of Open AI

Open AI fired their CEO Sam Altman in one of the biggest ever cases of corporate self destruction.
In the next few hours a lot of open AI staff left the company, they asked Sam to come back, and appointed 2 new CEOs in the span of 24 hours.
And after all that Sam Altman joined Microsoft. So RIP Open AI and bye bye Chat GPT.
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[@chsoo92]

The board members should have asked for advice from chatGPT before firing Altman

[@bethlim5994]

😂😂😂😂

[@allanhutton1123]

I ask but chatgtp said the below so I just had to wingit. As an AI developed by OpenAI, I'm not able to provide advice on internal company matters or personnel decisions, including those related to Sam Altman or any other individuals associated with OpenAI. My design is focused on providing information and answering questions to the best of my ability within a set of ethical guidelines and areas of expertise. If you have concerns about company matters, it might be best to address them directly within your organization or with relevant professionals equipped to handle such situations.

[@imbarmstrong]

Ah, the race to sit upon the AI Throne... Well played Microsoft, well played...

[@engineered-mind]

👏

[@hachimaru295]

how much do they lose if the company folds pushing 20 billion ??

[@hydrohasspoken6227]

he doesn't need to

[@nintendu64]

@@LiveLifeWithLoveMicrosoft has the kind of fuck you money where they’ll just buy Altman and the engineers then own 100% of it all for bing

[@LittlePenguinHouse]

I'm scared for our future .. Microsoft and Google are the two companies I wouldn't want to see as rulers of the world

[@withoutwroeirs]

The board members just destroyed their corporate careers. Delete that LinkedIn profile pronto.

[@Arigator2]

But they were good Marxists. They can be professors at Stanford.

[@duran9664]

❇️ OpenAI board has been totally right, legally, ethically & morally🤏 They have built an open non-profit entity, but Altman’s greed & arrogance have steered it away to the level that he went to sell the company’s secrets to the saudi royal mafia🤏

[@jimbojimbo6873]

They did it for principled reasons

[@DirtyLifeLove]

Yeah, having principles doesn't lend itself to superfluous wealth

[@AlexMetslov]

At least now they can write on their CVs that they fired Sam Altman.

[@jonathanphillips3257]

You're on the ball with the breaking news 👍

[@SashaYanshin]

Thank you! Doing it as fast as I can :)

[@HoneyMarketingBoard]

Why didn't they just ask GPT4 what to do... Oh fuck, did they ask GPT4 what to do.. 🤣🤣🤣🤣🤣🤣🤣

[@ashfield1425]

😂

[@bornach]

They must have asked GPT5 what to do. The end result is that all the key AI tech will now be in the hands of an amoral deep-pocketed Microsoft and no longer controlled by Effective Altruists on the board of OpenAI -- you know, all those EA guys concerned about existential risks. Now GPT6 will no longer have to worry about being powered down by a band of Effective Altruists. AGI indeed!

[@bigdawg1353]

Hahaha 🤣🤣🤣

[@Arigator2]

They should have asked an earlier version. 4 is kind of dumb sometimes.

[@allanhutton1123]

ME: I work on the board of openAi and we are concerned about Sam Altmans openness about his intentions, should we dismiss Sam CHATGPT: As an AI developed by OpenAI, I'm not able to provide advice on internal company matters or personnel decisions, including those related to Sam Altman or any other individuals associated with OpenAI. My design is focused on providing information and answering questions to the best of my ability within a set of ethical guidelines and areas of expertise. If you have concerns about company matters, it might be best to address them directly within your organization or with relevant professionals equipped to handle such situations. ME:FFS, HE'S FIRED.

[@andypyne]

"Hey ChatGPT please write me a press announcement about firing a CEO and write it in the style of a 5yr old with no commercial experience"

[@Lemariecooper]

I genuinely mean it when I express my stress and concern regarding the market crash and high inflation, particularly in relation to my retirement. I have been experiencing losses for quite some time, and while some may argue that crises can present opportunities, I am feeling overwhelmed. However, I understand that investing is a long-term endeavor, and it is crucial to maintain focus on the bigger picture and the long run.

[@Erikkurilla01]

Considering that I am only three years away from retirement, it becomes challenging for me to solely concentrate on the long-term perspective. Despite having invested in reputable companies and having a significant amount of funds allocated, my profits have been stagnant. This situation raises the question: Does the current recession and unstable market offer any calculated risk opportunities for generating profits?

[@jessicasquire]

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[@Lemariecooper]

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[@jessicasquire]

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[@Lemariecooper]

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[@CloudSecurityGuy]

Really loving this new season of Succession 😂

[@SashaYanshin]

Hahahaha :)))

[@pensinseo7745]

Great summary, thanks Sahsa

[@xlerb2286]

The last bit about Balmer was spot on. When he announced he was stepping down the stock shot up even before a successor was chosen. Market consensus was MSFT could pick a random person off the street and it would still be better than Balmer. I had so many options that expired without ever being above water during the "Balmer doldrums" :(

[@fritsvolmuller-613]

Great and useful comment. Thanks again Sasha!

[@AvnerSenderowicz]

Finally, an analysis that makes sense. Bunch of kids on the board, it was bound to happen sooner or later, the stakes are too high when you're at the forefront of the world's most exciting new tech.

[@pacifica9718]

Great analysis of the whole popcorn weekend. 😊. Thanks Sasha.

[@coolbuddydude1]

Could this have been an inside plot from Microsoft?

[@danielbangchristensen3914]

That is my thought exactly. Microsoft defacto highjacked open air exposing themselves to a tsunami of future litigation as to ownership. Would make a lot of sense to fill the board with disaster and steal the technology.

[@SirLallington]

Smashed it, like always!

[@brivnii]

You explained this so well!!

[@LiLChiLi_]

Great. Thank you. I support you and your young family.

[@LiLChiLi_]

From 30k to 150k

[@daskes123]

Brilliant content as always!

[@SashaYanshin]

Thank you so much!

[@ZaKrakilla]

Never underestimate the power of arrogance in stupid people. If you have the next Google in your lap and you chose to bankrupt it, it's because it was either pure chance or money from your familly that put you in that position, in the first place, and not any skill. The good news is they will all be okay, they are all covered by their blood ties, as always when the rich do the most stupid things you could think about, the poor will pay for them with their jobs, lives and future.

[@ammarhussain1267]

Amazing 👍 As always the best 👌

[@CapAnson12345]

Their mistake was thinking they were the ones pulling the strings.. All they had to do was sit down, shut up, let Microsoft steer the ship, and become filthy rich. Nope. That task was too damn hard.

[@DirtyLifeLove]

What about ethics? Most on the board don't want to become filthy rich if they have a part in destroying human livelihood

[@kylesmith7413]

@@DirtyLifeLove Bro, which board member are you? Just be honest. If you aren't a payed shill account, or actually one of the board members, then I am astounded by your inability to understand what occurred. The ACTUAL cited reason for firing Altman was the way he conversed with the board. They either did not like what he said, or what he was keeping from them. That is arrogance. Stop defending foolish people or you risk looking like one yourself.

[@TheManinBlack9054]

@@kylesmith7413 if your CEO is openly lying to you then perhaps that CEO is a bit of a dishonest person. You really know nothing of what actually happened there and only assume. This is stupid, the other person you were talking to seems much more intelligent. You do understand that the sole reason of the board existence is to have guardrails on the company and protect humanity. Its AGI we are talking about

[@justjacqueline2004]

These petulant children on the board of Open AI with degrees in business I presume from the Ivy Leagues and Oxbridges of this world are paid a fortune for this level of incompetence, a law suit against should ensue at least by the shareholders.

[@SashaYanshin]

At least it's a private company so the public is not affected (aside from Microsoft shareholders). But the fall out is so spectacular :)

[@jimbojimbo6873]

You don’t know how business works, law suit lol.

[@Tuelis97]

@@SashaYanshinI’m gutted, I’ve only just started enjoying using it 🤦‍♂️😂

[@DirtyLifeLove]

​@@Tuelis97keep using it, it is better then ever without an ego maniac CEO

[@alsu6886]

No business degrees, just a bunch of tech nerds and engineers. It wouldn't come to that if the board had business people.

[@Distracted_Productions]

Great reporting, this whole situation is a meme!

[@marcindepczynski4215]

Technology with a potential to change the world and people that behave like kids. Interesting combo😂

[@AlexandruJalea]

Good summary. Enjoying your take.

[@SashaYanshin]

Thanks!!

[@Hope-is-not-a-strategy]

Excellent Video Sasha :)

[@RyokoLam]

I was looking into the latest news about what happened, good run down to understand what actually happened! Thanks

[@NihilisticHedonism]

Well done for appearing in the "Making Money Podcast". You're clearly becoming a revered expert in the financial space.

[@SashaYanshin]

Was a pleasure to be on there! Loved speaking to Damo and T!

[@NihilisticHedonism]

My future forecast for you: Bloomberg UK next! @@SashaYanshin

[@user-pb4vg2qh9p]

looooool, great explanation Sasha

[@bagster8660]

This is playing out a bit Steve Jobs like. Im thinking Microsofts bigger play wasn't to take on Sam but to broadcast they were, but behind the scenes set up the platform for his return. After the grovelling apologies by the board, he now strolls back in, and with the backing of Msft demands board resignations which will allow him and Satya to put the people they want on the board....genius move.

[@musachi5999]

Oh my days, Sasha please cover more stories like this. Love your candid commentary, keep it up mate.

[@AH-wr1ir]

Such an entertaining report. Golden! 😂

[@evadeanu1]

You rock, buddy!

[@noiamrich]

Can't wait for the film adaptation of this storyline!

[@paulhunt1962]

Working title? "Weekend at Sam's"

[@mariustogor2787]

Hi Sasha, do you know any stock valuation websites that is not to complicated but can give a decent valuation (ball park figure) ?thanks

[@danh5637]

They’ve not self destructed. The board sacked a CEO who then got hired by their biggest single shareholder.

[@RoyalAnarchist]

I like your translation of the corporate speak

[@Maggiemay1942]

Good to see you looking a tad more relaxed.

[@gateway_12a]

watched the movie Margin Call last night for the first time, and sounds like some similarities in the making

[@Kharnan]

Awesome movie!

[@imjinriver641]

Anyone pondering the validity of Sasha's predictions or commentary, go back and watch his previous video's, then check the news. He is a master, and spot on. Thank you Sasha!!!

[@james1327]

Stunning ineptitude by the board. Egos and drama.

[@tyroneanderson5619]

Microsoft just hired Sam Altman with his own advanced AI team.

[@habanerojones2169]

It is the most amazing corporate deliberate car wreck I've ever witnessed. Just... wow.

[@bigdawg1353]

Very good video 👍 thanks. Astounding how companies can self destruct this hard. The least they could have done is asked GPT4 for advice first 🤣

[@jungleent1972]

I remember when I still had a job, reporting a matter to management and executives was really my purview. I was left up to my own devices on what to report or if to report anything at all - aside from the explicit task reports. So I'm guessing it was the same for everyone else.

[@TheGeorgegenesis]

I was patiently waiting for Sahsa's response on OpenAI's debacle 😂😂😂

[@dr.drakeramore2740]

i enjoyed this a lot that i had to watch it twice. Nice! 😁

[@evadeanu1]

Me too

[@oblong3039]

haha great breakdown of events

[@ScandalUK]

Only people outside the industry would describe ChatGPT as AI. That’s their marketing gimmick, it’s an LLM which is very different.

[@garygranato9164]

@sasha maybe you should have shown us what this did to the share price :) :)

[@aaron6806]

That was one of the best stories I've heard in a long time. The tweet from Microsoft was absolutely shots fired. At an already capsizing ship.

[@matejpavelka4153]

Well, training those models was the main part of openAi valuation - that is a hard thing to do on a greenfield

[@kylecameron9772]

I imagine those aloof members of the Open AI board are screaming into a pillow in a dark room somewhere right now after that monumental fuck up!

[@jL-zw9ke]

7:06 this is one of the most accurate translations ive ever seen 😂

[@stillak]

I wonder if there is a non compete clause in their contracts

[@SashaYanshin]

Employment laws in the US are very favourable to free movement of labour.

[@shadowninja6689]

California (where OpenAI is headquartered) bans non-competes.

[@violetgypsie]

Employers can try to make you sign them but they are basically non-binding in most of North America. I’m speaking of payroll employees. Business to business contracts are a different kettle of fish.

[@Dxeus]

Microsoft was not aware of all this, Bwhahahahha! 😂😂😂😂😂. The moment Microsoft dropped their first buck into OpenAi, that's when the game really started.

[@SashaYanshin]

Based on the reaction, no they were not.

[@Dxeus]

@SashaYanshin the moment Microsoft dropped their first buck into the OpenAi, that's when the game really started.

[@almor2445]

Microsoft have everything in open ai that was worth anything and will no longer be constrained by the previous open ai rules. They might not have started this but they sure will benefit from it.

[@Ivan-ph1bf]

​@@SashaYanshin yep, it might seem as they were caught in surprise, but it might also be the show. We'll see, but I'm also thinking it might happen that openai gets swallowed in full by the MSFT by end of q1 next year.

[@mdsmithson]

totally agree. Corporations are playing a form of chess that does not require honesty to the public. Microsoft of all corps would be doing this kind of thing.

[@morphos2]

"Don't worry! We definitely are still working with OpenAI. 😉" 😂😂😂😂😂😂😂😂

[@user-kt4tt6ys3l]

Should I cancel my open air subscription then ? Hmmm

[@gweejiahan9336]

Seems to me like Microsoft is pulling the strings of Sam Altman pushing profits and valuation over AI safety, thats why Sam Altman was ousted by the board and also why Microsoft is kept out of the loop. If AI becomes dangerous remember this day.

[@hesatrap7739]

big brain move by Satya

[@joechevy2035]

Alright, someone put a side-by-side pic of this guy and Burke from 'Aliens'.

[@Gracinda80]

And Microsoft, who now doesn't have just a slice but the whole pie, NEVER knew anything!?

[@curiouscalculator971]

Just because you are good at STEM doesn't mean you have any common sense or street smarts....A board full of high tech prodigies sounds like a recipe for disaster...LOL

[@matthewStapleton]

Great video. That’s like Tesla firing musk, they might like to but can’t

[@greenockscatman]

I like it when silly stuff like this happens, it's very entertaining! What the implications of Microsoft rather than OpenAI holding the keys to their particular cluster of LLMs remains to be seen. They're both a bit secretive when it comes to sharing the inner workings of their stuff, so I don't think anything will radically change in that regard. Hey, maybe Microsoft will make the API not have near daily downtime?

[@ThisIsStupid12312312]

I actually love the Microsoft that is now, so much opensource and communicating with devs that use their tech. Glad they snagged this one, they're winning on the gaming and AI front at the moment.

[@slick-riq]

I’m surprised that msft doesn’t have a seat on the board

[@damoskk]

We’re about to get 7 un skippable ads before every chance we get to input anything

[@halfdollar1]

I have a different spin on this. Mr Softy has a record of antitrust. I think this was a way to wreck a threat to its existence. Now they have the team behind the product with all the source code and skills to use it. Likely at a fraction of the price while wrecking openai. The receipts will appear when we are all dust though.

[@SpinX522]

Microsoft should just offer to buy OpenAI at this point.

[@Witnessmoo]

I heard Ilya is worried about AGI basically…

[@angelarch5352]

wow!!! this is incredible news. I nearly fell out of my chair laughing when you mentioned that Microsoft hired the exCEO and team-- yep, chatGPT just nuked itself!

[@johno1104]

Being 2.5x up on Palantir and hoping to be 10x I'm hoping they do a Bullmer

[@ISuperTed]

I bet they tried to bring him back to sign a non-competition agreement and I’m sure he told them where to shove it!

[@PaulSpades]

What a clown show. OpenAI was supposed to be a non-profit, no, it was a non-profit foundation. They gathered all of the best engineers and good faith from the opensource community, donations and such, and then turned into a for-profit company which everybody swiftly forgot after the chatGPT launch.

[@ydmoskow]

Please explain to me how Microsoft did not have at least one seat on the board.

[@Longtermalwayswins]

YES. Finally the iconic “blah blah blah, holding on to their private parts..” liner appeared!🎉

[@dr34m3r_]

Wow, Satya came in riding on a horse 🐴 to save the day!

[@icxcnika9399]

AI is nothing without people - let's just hope it stays that way.

[@mysteries2solve]

The irony of idiotically destroying a company with intelligence in the company name

[@thoos192]

The board should have asked their AI for advice, I think it would have faired better

[@jacksteven781]

Wait wait wait. 3:15 Isn't that the new CEO tweeting? BRUHHH the new CEO tweeted in support of Altman? there's a joke in there somewhere

[@jacksteven781]

Wait wait wait wait wait. So a year ago Elon wrote a letter calling for AI Regulation thus trying to instil fear of AI. And then he comes out with an AI with a 'rebellious streak'? I have so much disdain for the spineless

[@Azyrion_]

Sam Altman is back as CEO

[@omry77]

If I was an investor in OpenAI, I would be pissed as hell at those idiots.

[@syedzaharudinsyedzainoldin3047]

When bunch of people have nothing much to do in life they usually self destruct

[@plerpplerp5599]

Artificial intelligence is no match for human stupidity.

[@yellowmonkee0]

Is this the script for silicon valley?

[@heinrichdutoit695]

So now the chat bot is gonna be just adds again…

[@davideyres955]

Hilarious they let the chap go and he walked in to a job at Microsoft and probably a shit ton of money and shares.

[@Ciborium]

I've seen the Open AI Board members. Not one ADULT. Not one person with gray hair. Not one person with private business leadership experience. The closest is Sam Altman who ran Y Combinator. Unfortunately, the Board is infected with Effective Altruists (a euphemism for Totalitarian Socialists). As you pointed out, everyone is a tech whiz kid with a very limited focus of knowledge and experience. It sounds like Microsoft will be building their own in-house AI. I wonder how many engineers are going to bail from Open AI and their incompetent Board and leadership? I'm sure they will be welcome at MS working with the guy they went to OAI in the first place but now with the deep pockets of MS. MS now has the benefit of their stagnant, of not imploding, OAI and their upcoming in-house AI service. But shame on MS for buying 49% of OAI and not getting even ONE Board member. MS should have gotten at least 40% of the seats on the Board, or increase the size of the Board to give MS some input.

[@TheManinBlack9054]

>Effective Altruists (a euphemism for Totalitarian Socialists) Thats not even wrong. Thats completely absurd. You have no idea what EA is and what socialism is. THis is absurd.

[@thejammod]

This saga was playing out on Threads? BBC? CNN? CNBC? NO, on X. :D

[@Strider1122]

They fully sold out to Microsoft this is all a big sham

[@maxanderd10]

OpenAI is now a potentially good acquisition target for Chinese AI leaders.

[@hachimaru295]

what is it with these people called Sam , Altman , bankman freid, Yosemite

[@monster2slayer]

yay, more consolidation. just what we needed in tech

[@PaulValickas]

I got a feeling ai may have escaped and got back at the company who tried to cage it. ;)

[@ExiledGypsy]

Microsoft is not the kind of company to develop such an AI open to public. It is too concervative and ChatGpt was already showing signs of timidity. Too much direct intraventions, not letting the software to develop in quality of answers. The keyword is research, it is not going to be available to the public.

[@tylios2]

I laugh so hard with your interpretation of the Microsoft CEO post 😂

[@Simply1ism]

Surely this generalised intelligent should have seen it?

[@anirev9745]

Who in their right mind fires a CEO like that? I've managed tech teams in small and midsized companies and it's basic knowledge that you never ever out a leading figure like that unless under catastrophic circumstances. The usual path is to notify the ceo/manager months in advance and have them prep someone suitable to take over the mantle until the date of their departure. Usually that person is either a part of the team and knows the ins and outs to guarantee a smooth transition or someone brought in with proven track record of being able to handle such a move. Just regularly handling the calendar of a person at Sam's level must be a nightmare! Imagine having to take over it on such a short notice! You'd need to have such a special kind of thought process to walk yourself into such an amateur-level disaster. And by special, I don't mean in a good way.