OpenAI says Microsoft will have a non-voting board seat

OpenAI’s Sam Altman detailed his plans for the artificial intelligence company for the first time since being reinstated last week as chief executive, saying Microsoft would have a nonvoting board seat and the company would continue pushing out consumer AI products.

OpenAI’s corporate structure, which currently has a nonprofit board controlling the for-profit company, will also be changed, Altman and new board chair Bret Taylor both said in memos to employees, later posted on OpenAI’s website. Altman did not detail how the structure would be changed, saying only they were working on “improving” it.

Altman was fired from OpenAI on Nov. 17, kicking off a chaotic five days as the tech industry grappled with the implications of the face of the AI revolution being unceremoniously removed from his company. Five days later, Altman was back, a new board had been appointed, consisting of Taylor, former treasury secretary Larry Summers and Quora CEO Adam D’Angelo, one of the previous board members who had removed Altman.

Since then, Silicon Valley has speculated about who else would join the board and ultimately control the fate of the company. In the memo, Altman said he would be working “closely” with the three current board members of OpenAI to appoint a board with “diverse perspectives.” Analysts have said the five days of chaos would strengthen the power that Microsoft, which has invested billions of dollars in OpenAI, has over the company.

“We clearly made the right choice to partner with Microsoft and I’m excited that our new board will include them as a nonvoting observer,” Altman said in the memo.

He signaled the company would continue with its tactic of building consumer products and pushing them out to the public. “It’s important that people get to experience the benefits and promise of AI, and have the opportunity to shape it. We continue to believe that great products are the best way to do this,” Altman said.

In a separate memo to employees, also posted on the company’s website, Taylor, the new board chair, signaled that OpenAI’s nonprofit corporate structure might be changed.

“We will enhance the governance structure of OpenAI so that all stakeholders — users, customers, employees, partners, and community members — can trust that OpenAI will continue to thrive,” Taylor said. After the memo was posted, Taylor said on the social media site X that he would step down once the full board was appointed.

This is a breaking news story and will be updated.