In a stunning turn of events, over 700 of OpenAI’s 770 employees threatened to quit and join Microsoft in November 2023, following the removal of Sam Altman as CEO. This unprecedented move highlighted the deep divisions within the company and raised serious questions about its future.

The mass resignation threat came after the board abruptly ousted Altman, citing concerns about his leadership style and decision-making. However, the employees rallied behind Altman, arguing that he was a visionary leader who was essential to OpenAI’s success. They also expressed deep concerns about the board’s competence and judgment, questioning whether they were capable of stewarding the company’s mission of ensuring that artificial general intelligence benefits all of humanity.

The employees’ ultimatum sent shockwaves through the tech industry, as it threatened to cripple OpenAI, one of the world’s leading AI research labs. The company had been at the forefront of developing groundbreaking AI technologies, including its popular chatbot ChatGPT. However, the loss of so many key employees could have severely hampered OpenAI’s ability to continue its research and development efforts.

In the face of this crisis, Microsoft stepped up to offer a lifeline to OpenAI’s employees. The tech giant, which had previously invested in OpenAI, announced that it would create a new AI research unit led by Altman and former OpenAI president Greg Brockman. This offer provided a clear path for OpenAI’s employees to continue working under the leadership they trusted.

The board’s decision to remove Altman ultimately proved to be a major miscalculation. The mass resignation threat exposed the deep divisions within OpenAI and raised serious doubts about the board’s ability to steer the company forward. While the company managed to retain a small number of employees, the loss of so much talent undoubtedly dealt a significant blow to its future prospects.

Here are some of the key reasons why the employees threatened to quit:

• They believed that Altman was a visionary leader who was essential to OpenAI’s success. Altman had been a driving force behind the company’s development, and the employees felt that he was the best person to lead OpenAI into the future.
• They were concerned that the board was not committed to OpenAI’s mission of ensuring that artificial general intelligence benefits all of humanity. The employees felt that the board was more interested in short-term financial gains than in the long-term health of the company.
• They were worried that the board’s actions would damage OpenAI’s reputation and make it difficult for the company to attract and retain top talent. The employees felt that the board’s decision to remove Altman was a sign of instability and that it would make it difficult for the company to compete with other AI companies.

The OpenAI saga serves as a cautionary tale about the importance of effective leadership and the potential perils of hasty decision-making. It also highlights the growing power of employees in today’s tech industry, where talent is scarce and competition is fierce. Companies that fail to value and respect their employees risk facing similar consequences.