The Microsoft-OpenAI Files

Longtime Slashdot reader theodp writes: GeekWire takes a look at AI's defining alliance in The Microsoft-OpenAI Files, an epic story drawn from 200+ documents, many made public Friday in Elon Musk's ongoing suit accusing OpenAI and its CEO Sam Altman of abandoning the nonprofit mission (Microsoft is also a defendant). Musk, who was an OpenAI co-founder, is seeking up to $134 billion in damages. "Previously undisclosed emails, messages, slide decks, reports, and deposition transcripts reveal how Microsoft pursued, rebuffed, and backed OpenAI at various moments over the past decade, ultimately shaping the course of the lab that launched the generative AI era," reports GeekWire. "The latest round of documents, filed as exhibits in Musk's lawsuit, [...] show how Nadella and Microsoft's senior leadership team rally in a crisis, maneuver against rivals such as Google and Amazon, and talk about deals in private." Even though Microsoft didn't have a seat on the OpenAI board, text messages between Microsoft CEO Satya Nadella and OpenAI CEO Sam Altman following Altman's firing as CEO in Nov. 2023 (news of which sent Microsoft's stock plummeting), revealed in the latest filings, show just how influential Microsoft was. A day after Altman's firing, Nadella sent Altman a detailed message from Brad Smith, Microsoft's president and top lawyer, explaining that Microsoft had created a new subsidiary called Microsoft RAI (Responsible Artificial Intelligence) Inc. from scratch -- legal work done, papers ready to file as soon as the WA Secretary of State opened Monday morning -- and was ready to capitalize and operationalize it to "support Sam in whatever way is needed," including absorbing the OpenAI team at a calculated cost of roughly $25 billion. (Altman's reply: "kk"). Just days later, as he planned his return as CEO to the now-reeling-from-Microsoft-punches nonprofit, Altman joined Microsoft's Nadella, Smith, and CTO Kevin Scott in a text messaging thread in which the four vetted prospective board members to replace those who had ousted Altman. Later that night, OpenAI announced Altman's return with the newly constituted board. If you like stories with happy Microsoft endings, as part of an agreement clearing the way for OpenAI to restructure as a for-profit business, Microsoft in October received a 27% ownership stake in OpenAI worth approximately $135 billion and retains access to the AI startup's technology until 2032, including models that achieve AGI.

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