The company that created ChatGPT was thrown into turmoil Monday after Microsoft hired its ousted CEO and many employees threatened to follow him in a conflict that centered in part on how to build artificial intelligence that’s smarter than humans.

The developments followed a weekend of drama that shocked the AI field and fueled speculation about the future of OpenAI, which named a new chief executive on Friday and then replaced her on Sunday. The newest CEO vowed to investigate the firing of co-founder and CEO Sam Altman, who’s been instrumental in OpenAI’s transformation from a nonprofit research laboratory into a world-renowned commercial startup that inaugurated the era of generative artificial intelligence.

Microsoft, which has been a close partner of the company and invested billions of dollars in it, announced that Altman and OpenAI’s former president, Greg Brockman, would lead its new advanced AI research team. Brockman, also an OpenAI co-founder, quit in protest after Altman was fired.

Hundreds of OpenAI employees, including other top executives, threatened to join them at Microsoft in an open letter addressed to OpenAI’s four-member board that called for the board’s resignation and Altman’s return.

“If the architects and vision and brains behind these products have now left, the company will be a shell of what it once was,” said Sarah Kreps, director of Cornell University’s Tech Policy Institute. “All of that brain trust going to Microsoft will then mean that these impressive tools will be coming out of Microsoft. It will be hard to see OpenAI continue to thrive as a company.”

File – Sam Altman participates in a discussion during the Asia-Pacific Economic Cooperation (APEC) CEO Summit, Thursday, Nov. 16, 2023, in San Francisco. The board of ChatGPT-maker Open AI says it has pushed out Altman, its co-founder and CEO, and replaced him with an interim CEO. (AP Photo/Eric Risberg, File)

Photo: ASSOCIATED PRESS/Eric Risberg

FILE – Microsoft CEO Satya Nadella speaks on Nov. 15, 2023, in San Francisco. Despite a rift between the key players behind ChatGPT and the company they helped build, both former Twitch leader Emmet Shear and Nadella said they are committed to a partnership. Microsoft snapped up Sam Altman and another architect of ChatGPT maker OpenAI for a new venture after their sudden departures shocked the artificial intelligence world. It’s also left OpenAI’s new CEO to paper over tensions by vowing to investigate Altman’s firing. The developments come Monday, Nov. 20, 2023 after a weekend of drama and speculation about how the power dynamics would shake out at OpenAI. (AP Photo/Eric Risberg, file)

Photo: ASSOCIATED PRESS/Eric Risberg

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Microsoft CEO Satya Nadella wrote on X, formerly known as Twitter, that he was “extremely excited” to bring on the pair and looked “forward to getting to know” the new management team at OpenAI.

Altman later said on X that his top priority with Nadella is to ensure that OpenAI “continues to thrive” and that it is committed to “fully providing continuity of operations to our partners and customers.”

OpenAI said Friday that Altman was pushed out after a review found he was “not consistently candid in his communications” with the board of directors, which had lost confidence in his ability to lead the company.

In an X post Monday, OpenAI’s new interim chief executive, Emmett Shear, said he would hire an independent investigator to look into Altman’s ouster and write a report within 30 days.

“It’s clear that the process and communications around Sam’s removal” were handled “very badly,” wrote Shear, who co-founded Twitch, an Amazon-owned livestreaming service popular with video gamers.

He said he also plans in the next month to “reform the management and leadership team in light of recent departures.” After that, Shear said, he would “drive changes in the organization,” including “significant governance changes if necessary.”

Originally started as a nonprofit, and still governed as one, OpenAI’s stated mission is to safely build AI that is “generally smarter than humans.” Debates have swirled around that goal and whether it conflicts with the company’s increasing commercial success.

The reason behind the board’s removal of Altman was not a “specific disagreement on safety,” nor does the board oppose commercialization of AI models, Shear said.

OpenAI last week declined to answer questions about Altman’s alleged lack of candor. The company’s statement said his behavior was hindering the board’s ability to exercise its responsibilities.

A key driver of the shakeup, OpenAI’s co-founder, chief scientist and board member Ilya Sutskever, expressed regrets for his participation in the ouster.

“I never intended to harm OpenAI. I love everything we’ve built together and I will do everything I can to reunite the company,” he said Monday on X.

The open letter began circulating Monday. According to a copy obtained by The Associated Press, the number of signatures amounted to a majority of the company’s 770 employees. The AP was not able to independently confirm that all of the signatures were from OpenAI employees.

“Everyone at @OpenAI is united,” one of the signatories, research scientist Noam Brown, said on X. “This is not a civil war. Unless Sam and Greg are brought back, there will be no OpenAI left to govern.”

The letter alleged that after Altman’s firing, the company’s remaining executive team had recommended that the board resign and be replaced with a “qualified board” that could stabilize the company. But the board resisted and said allowing OpenAI to be destroyed would be consistent with its mission, according to the letter.

OpenAI has said since its 2015 founding that its goal is to advance AI in a way that benefits all humanity.

A company spokesperson confirmed that the board received the letter.

Microsoft declined to comment on the letter.

After Altman was pushed out, he stirred speculation about coming back into the fold in a series of tweets. He posted a selfie with an OpenAI guest pass Sunday, saying this is “first and last time i ever wear one of these.”

Hours earlier, he tweeted, “i love the openai team so much,” which drew heart replies from Brockman and Mira Murati, OpenAI’s chief technology officer who was initially named as interim CEO.

It’s not clear what transpired between the announcement of Murati’s interim role Friday and Shear’s hiring, though she was among several employees Monday who tweeted, “OpenAI is nothing without its people.” Altman replied to many with heart emojis.

The board consists of Sutskever, Quora CEO Adam D’Angelo, tech entrepreneur Tasha McCauley and Helen Toner of the Georgetown Center for Security and Emerging Technology. None of them responded to calls or emails seeking comment. Because of its nonprofit structure, the board differs from most startup boards that are typically led by investors.

Altman helped catapult ChatGPT to global fame based on its ability to respond to questions and produce human-like passages of text in a seemingly natural way.

In the past year, he has become Silicon Valley’s most in-demand voice on the promise and potential dangers of artificial intelligence.

Earlier this year, he went on a world tour to meet with government officials, drawing big crowds at public events as he discussed the risks of AI and attempts to regulate the emerging technology.

But as money poured into OpenAI this year, helping to advance its development of more capable AI, it also brought more conflict around whether that fast pace of commercialization fit with the startup’s founding vision, said Kreps, the Cornell University professor. But rather than slow that pace, Altman’s ouster may simply shift it out of OpenAI.

Altman “really has a walk-on-water aura, and I think a lot of it is well deserved,” Kreps said. “He’s the one who has attracted the investment, and he’ll do that wherever it is.”

Microsoft’s shares rose 2% on Monday and hit an all-time high.

The AP and OpenAI have a licensing and technology agreement allowing OpenAI access to part of the AP’s text archives.

___

Associated Press writers Brian P. D. Hannon in Bangkok and Haleluya Hadero in New York contributed to this report.

Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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Microsoft on Monday hired two leading executives from the company that created ChatGPT after one of them was abruptly fired by OpenAI, the startup whose chatbot kicked off the era of generative artificial intelligence.

The developments followed a weekend of drama that shocked the AI field and fueled speculation about the future of OpenAI, which named a new chief executive on Friday and then replaced her on Sunday. The newest CEO vowed to investigate the firing of co-founder and CEO Sam Altman, one of the world’s most sought-after experts on AI.

Microsoft, which has been a close partner of the company and invested billions of dollars in it, announced that Altman and OpenAI’s former president, Greg Brockman, would lead its new advanced AI research team. Brockman, also an OpenAI co-founder, quit in protest after Altman was fired.

Many more OpenAI employees threatened to join them at Microsoft in an open letter addressed to OpenAI’s board that called for its resignation and Altman’s return.

“If the architects and vision and brains behind these products have now left, the company will be a shell of what it once was,” said Sarah Kreps, director of Cornell University’s Tech Policy Institute. “All of that brain trust going to Microsoft will then mean that these impressive tools will be coming out of Microsoft. It will be hard to see OpenAI continue to thrive as a company.”

File – Sam Altman participates in a discussion during the Asia-Pacific Economic Cooperation (APEC) CEO Summit, Thursday, Nov. 16, 2023, in San Francisco. The board of ChatGPT-maker Open AI says it has pushed out Altman, its co-founder and CEO, and replaced him with an interim CEO. (AP Photo/Eric Risberg, File)

Photo: ASSOCIATED PRESS/Eric Risberg

FILE – Microsoft CEO Satya Nadella speaks on Nov. 15, 2023, in San Francisco. Despite a rift between the key players behind ChatGPT and the company they helped build, both former Twitch leader Emmet Shear and Nadella said they are committed to a partnership. Microsoft snapped up Sam Altman and another architect of ChatGPT maker OpenAI for a new venture after their sudden departures shocked the artificial intelligence world. It’s also left OpenAI’s new CEO to paper over tensions by vowing to investigate Altman’s firing. The developments come Monday, Nov. 20, 2023 after a weekend of drama and speculation about how the power dynamics would shake out at OpenAI. (AP Photo/Eric Risberg, file)

Photo: ASSOCIATED PRESS/Eric Risberg

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Microsoft CEO Satya Nadella wrote on X, formerly known as Twitter, that he was “extremely excited” to bring on the pair and looked “forward to getting to know” the new management team at OpenAI.

In a reply on X, Altman said “the mission continues.” Brockman posted: “We are going to build something new & it will be incredible.”

OpenAI said Friday that Altman was pushed out after a review found he was “not consistently candid in his communications” with the board of directors, which had lost confidence in his ability to lead the company.

In an X post Monday, OpenAI’s new interim chief executive, Emmett Shear, said he would hire an independent investigator to look into Altman’s ouster and write a report within 30 days.

“It’s clear that the process and communications around Sam’s removal” were handled “very badly,” wrote Shear, who co-founded Twitch, an Amazon-owned livestreaming service popular with video gamers.

He said he also plans in the next month to “reform the management and leadership team in light of recent departures into an effective force” and speak with employees, investors and customers.

After that, Shear said he would “drive changes in the organization,” including “significant governance changes if necessary.”

He noted that the reason behind the board removing Altman was not a “specific disagreement on safety.” Originally started as a nonprofit, and still governed as one, OpenAI’s stated mission is to safely build AI that is “generally smarter than humans.” Debates have swirled around that goal and whether it conflicts with the company’s increasing commercial success.

OpenAI last week declined to answer questions about Altman’s alleged lack of candor. Its statement said his behavior was hindering the board’s ability to exercise its responsibilities.

A key driver of the shakeup, OpenAI’s co-founder, chief scientist and board member Ilya Sutskever, expressed regrets for his participation in the ouster.

“I never intended to harm OpenAI. I love everything we’ve built together and I will do everything I can to reunite the company,” he said Monday on X.

Hundreds of OpenAI employees signed a letter that began circulating early Monday calling for the board’s resignation and Altman’s return and threatening to follow Altman and Brockman to Microsoft, according to a copy of the letter obtained by The Associated Press.

The copy showed that the number of signatures amounted to a majority of the company’s 770 employees. The AP was not able to independently confirm that all of the signatures were from OpenAI employees.

“Everyone at @OpenAI is united,” one of the signatories, research scientist Noah Brown, said on X. “This is not a civil war. Unless Sam and Greg are brought back, there will be no OpenAI left to govern.”

A company spokesperson confirmed that the board received the letter.

Microsoft declined to comment on the letter.

After Altman was pushed out, he stirred speculation about coming back into the fold in a series of tweets. He posted a selfie with an OpenAI guest pass Sunday, saying this is “first and last time i ever wear one of these.”

Hours earlier, he tweeted, “i love the openai team so much,” which drew heart replies from Brockman and Mira Murati, OpenAI’s chief technology officer who was initially named as interim CEO.

It’s not clear what transpired between the announcement of Murati’s interim role Friday and Shear’s hiring, though she was among several employees Monday who tweeted, “OpenAI is nothing without its people.” Altman replied to many with heart emojis.

The board consists of Sutskever, Quora CEO Adam D’Angelo, tech entrepreneur Tasha McCauley and Helen Toner of the Georgetown Center for Security and Emerging Technology. None were able to be reached for comment.

Shear said he took the new job because he believes “that OpenAI is one of the most important companies currently in existence.”

On a podcast in June, Shear said he’s generally optimistic about AI but has serious concerns about building something “a lot smarter than us” and whether doing so could endanger humans.

That’s an issue that Altman consistently faced after helping catapult ChatGPT to global fame based on its ability to respond to questions and produce human-like passages of text in a seemingly natural way.

In the past year, he has become Silicon Valley’s most in-demand voice on the promise and potential dangers of artificial intelligence.

Earlier this year, he went on a world tour to meet with government officials, drawing big crowds at public events as he discussed the risks of AI and attempts to regulate the emerging technology.

But as money poured into OpenAI this year, helping to advance its development of more capable AI, it also brought more conflict around whether that fast pace of commercialization fit with the startup’s founding vision, said Kreps, the Cornell University professor. But rather than slow that pace, Altman’s ouster may simply shift it out of OpenAI.

Altman “really has a walk-on-water aura, and I think a lot of it is well deserved,” Kreps said. “He’s the one who has attracted the investment, and he’ll do that wherever it is.”

Microsoft’s shares rose nearly 2% before the opening bell and were nearing an all-time high Monday.

The Associated Press and OpenAI have a licensing and technology agreement allowing OpenAI access to part of the AP’s text archives.

___

Associated Press writers Brian P. D. Hannon in Bangkok and Haleluya Hadero in New York contributed to this report.

Copyright 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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When ChatGPT launched last November, Olivia Lipkin, a 25-year-old copywriter from San Francisco, didn’t give it much thought. Then, articles about how to use the chatbot in the workplace began to appear in internal Slack groups at the tech start-up where she worked as the company’s sole writer.

Over the next few months, Lipkin’s duties dwindled. Managers started referring to her as “Olivia/ChatGPT” on Slack. She was fired in April with no reason given, but when she saw managers writing about how using ChatGPT was cheaper than paying an author, the reason for her sacking seemed clear.

“Whenever people mentioned ChatGPT, I felt insecure and scared it would replace me,” she said. “Now I actually had proof that it was true, that those fears were valid, and now I was actually out of a job because of AI.”

The quality of artificial intelligence has increased rapidly over the past year, giving birth to chatbots that can have fluent conversations, write songs, and produce computer code. In their quest to make the technology mainstream, Silicon Valley companies are pushing these products to millions of users, often offering them for free – for now.

Some economists believe the technology could replace hundreds of millions of jobs, leading to a catastrophic workforce restructuring mirroring the Industrial Revolution. Skeptics say these fears of job losses are overblown and that AI chatbots are becoming tools that allow people to work faster.

For some workers, the impact is real. Those who write marketing and social media content are in the first wave of people to be replaced by tools like chatbots who seem able to come up with plausible alternatives to their work.

Experts say even advanced AI can’t match a human’s writing skills: it lacks personal voice and style, and often provides incorrect, nonsensical, or biased answers. But for many companies, cutting costs is worth a loss in quality.

“We really are in a crisis,” said Sarah T. Roberts, an associate professor at the University of California, Los Angeles, who specializes in the digital workforce. “[AI] comes for the jobs that should actually be automation-safe.”

Learn why AI like ChatGPT has gotten so good so quickly

AI and algorithms have been part of the working world for decades. For years, consumer goods companies, grocery stores, and warehouse logistics companies have used predictive algorithms and robots with AI-powered vision systems to make business decisions, automate some routine tasks, and manage inventory. Industrial plants and factories were dominated by robots for much of the 20th century and countless office tasks were replaced by software.

But the recent wave of generative artificial intelligence — which uses complex algorithms trained on billions of words and images from the open internet to produce text, images and audio — holds the potential for a new level of disruption. Experts say the technology’s ability to produce human-sounding prose is targeting high-paid knowledge workers for detachment.

“With every previous automation threat, automation has been about automating the hard, dirty, and repetitive tasks,” said Ethan Mollick, associate professor at the University of Pennsylvania’s Wharton School of Business. “This time, the threat of automation is aimed squarely at the highest-paying, most creative jobs that require… the highest educational background.”

In March, Goldman Sachs predicted that 18 percent of the world’s work could be automated by AI, with white-collar workers like lawyers at higher risk than workers in jobs like construction or maintenance. “Occupations that involve a significant amount of time spent outdoors or involving physical labor cannot be automated by AI,” the report says.

The White House also sounded the alarm, saying in a December report that “AI has the potential to automate ‘non-routine’ tasks, exposing large new segments of the workforce to potential disruption.”

ChatGPT “hallucinating”. Some researchers fear it’s not fixable.

But Mollick said it’s too early to gauge just how disruptive AI will be for the workforce. He pointed out that jobs such as copywriting, document translation and transcription, and working as a paralegal are particularly at risk, as these are tasks that chatbots can easily handle. High quality legal analysis, creative writing or art may not be that easy to replace, he said, as humans still outperform AI in these areas.

“In general, think of AI as acting like a high-end intern,” he said. “Jobs, which are mostly designed as entry-level jobs to get you involved in a field where you’re doing something worthwhile, but they’re also sort of a stepping stone to the next level — these are jobs that are under threat.”

Eric Fein ran his content writing business for 10 years, charging $60 an hour to write everything from 150-word bathmat descriptions to website copy for cannabis companies. The 34-year-old from Bloomingdale, Illinois, has ten ongoing contracts to build a stable business that provides half his annual income and provides a comfortable living for his wife and two-year-old son.

But in March, Fein received a message from its largest client: its services would no longer be needed as the company would switch to ChatGPT. Fein’s nine other contracts were gradually terminated for the same reason. His entire copywriting business disappeared almost overnight.

“It wiped me out,” Fein said. He urged his customers to rethink and warned that ChatGPT could not write content with its level of creativity, technical precision and originality. He said his customers understood that, but were told that using ChatGPT was far cheaper than paying him his hourly wage.

Fein was rehired by one of his clients who was not happy with ChatGPT’s work. But it’s not enough to support him and his family, who have to stay financially secure for a little over six months before they run out of money.

Now Fein has decided to take a job that AI can’t do and has enrolled in courses to become an HVAC technician. Next year he wants to do an apprenticeship as a plumber.

“One trade is more future-proof,” he said.

The debate over whether AI will destroy us divides Silicon Valley

Companies that replaced their employees with chatbots faced major problems. When technology news site CNET used artificial intelligence to write articles, the results were riddled with errors and required lengthy corrections. A lawyer who relied on ChatGPT for legal opinion cited numerous fictitious cases. And the National Eating Disorders Association, which fired its hotline staff and reportedly replaced it with a chatbot, stopped using the technology after it distributed insensitive and harmful advice.

Roberts said chatbots can cause costly mistakes and that companies rushing to integrate ChatGPT into operations are “hasty”. Because they predict the statistically most likely word in a sentence, they intentionally produce average content. That presents companies with a difficult choice, she said: quality vs. cost.

“We have to ask ourselves: is a facsimile good enough? Is imitation good enough? Is that all we care about?” she said. “We will lower the level of quality, and for what purpose? So that the company owners and shareholders can get a bigger piece of the pie?”

Lipkin, the copywriter who found out she was replaced by ChatGPT, is completely rethinking her office work. She first got into content marketing to make a living while pursuing her own creative writing. But she found the job burned her out and made it difficult for her to write herself. Now she is starting a job as a dog handler.

“I’m taking a complete break from the office world,” Lipkin said. “People are looking for the cheapest solution, and that’s not a human, it’s a robot.”

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• Because of pandemic-era closings, San Francisco became somewhat of a ghost town for two years.
• As people left the city and worked remotely, some wondered if San Francisco was dead as a tech hub.
• Now, a race to succeed in the fledgling space of generative AI has founders flocking back.

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San Francisco’s tech scene is back. After the pandemic effectively shut down the city for more than two years, San Francisco is shifting away from proclamations of a once-great city’s demise and towards the good old times, when it was the destination for those trying to reshape the world’s technological vision.

Across the city, founders are planting their flags, with dreams of riding the wave of a new technology that’s been said to be a step-change akin to the iPhone: generative artificial intelligence. Amber Yang, an early-stage investor at Bloomberg Beta, recently tweeted that startups in that field are flocking to San Francisco’s Hayes Valley neighborhood, which founders have renamed to “Cerebral Valley.” The tweet was somewhat made in jest, but Yang went on to explain that the nascent field of generative AI is advancing so quickly that teams feel being together in one hub is necessary to keep up.

Generative AI takes training data — for instance, a vast corpus of written text — and teaches itself how to produce completely new, unique works. In the first five days since its release, more than 1 million people have reportedly tried out ChatGPT, an AI chatbot that can respond to questions with human-like answers. Microsoft is reportedly investing $10 billion in the tool’s creator OpenAI, with plans to incorporate the technology into its Bing search and Azure cloud offerings.

ChatGPT has limitations, however. It may know how to form human-like sentences, but it can’t discern whether they’re accurate.

Still, the underlying technology of generative AI is nonetheless quite impressive, and startup founders see much potential. 22% of generative AI companies are based in the greater San Francisco Bay Area, and 55% of capital invested in the space is landing here, says James Currier, a partner with early-stage investment firm NFX.

The “crazy hackers” are here

Founders Víctor Perez and Diego Rodríguez knew San Francisco was the place to be for generative AI when they moved there several months ago to build KREA. Their startup, based in the city’s Hayes Valley neighborhood, creates models for high-quality image generation along with asset management services.

Originally from Spain, the duo first landed in Miami last year, where they developed generative image models. There, they noticed that most of the “crazy hackers” they met came from San Francisco.

After giving New York a try for several weeks, the generative AI boom picked up. People began telling them to head west. Dave Fontenot, founder of a 12-week residency program called HF0 for founders in San Francisco, told them they’d be “crazy” and “irresponsible” not to work on generative AI in San Francisco, Perez said.

The home where KREA’s founders work.

Thomas Maxwell/Insider

Perez and Rodríguez initially planned to stay briefly, but when they started meeting people around San Francisco working on generative tech — including individuals working on artificial intelligence at Meta and OpenAI — they knew they had to stay. They said they felt the excitement and the motivation of developers to build something new.

Pre-pandemic, these types of bare homes of startup founders were common.

Thomas Maxwell/Insider

Perez said that the sense of urgency to get working on building better AI models comes from how generative AI improves with more data. Models must be trained using real data created by humans — the more images of a fish that an AI model sees, the better it gets at producing its own image of a fish, for instance.

“We feel urgent,” Perez said. “But it’s not because some other people can create a better model than us today. It’s creating the best models tomorrow.”

KREA is developing high-quality image models, like one that can generate images in the style of a Studio Ghibli film. It will also give users an intuitive canvas where they can manage their images and collaborate.

Thomas Maxwell/Insider

Another founder who recently landed in San Francisco, Nicholas Locascio, is working on Booth AI, which targets e-commerce with a tool that generates professional product shots without having to pay for an expensive photo shoot. Customers upload images of their product — say, a coffee mug — and then Booth AI can place the coffee mug in a lifestyle scene that makes it look appealing on e-commerce pages.

Along with co-founders Ian Baldwin and Mitra Morgan, Locascio was recently accepted into the vaunted Y Combinator accelerator program based in Silicon Valley.

“This is a technology that a lot of traditional thinking about programming just doesn’t work for,” Locascio said. “Nobody knows the best way to do anything right now. It’s a complete gold rush.”

Booth AI co-founded Ian Baldwin and Nicholas Locascio.

Nicholas Locascio

No skeptics yet

While founders are confident that generative AI will change the world, they’re still trying to figure out exactly how it will play out.

“There are no skeptics yet, so it’s a unique time,” said Currier, the NFX partner. “But entrepreneurs have to figure it out because the Big Tech companies aren’t sitting around.”

To Currier’s point, Google reportedly issued a “code red” in recent weeks to respond to the potential threat of generative AI products against search and its other key services.

That’s why it’s key for up-and-coming AI startup developers to work together to get ahead while they can and share ideas with each other – similar to how in the early days of the sharing economy, Uber co-founder Travis Kalanick and Airbnb CEO Brian Chesky would reportedly have dinner together frequently and leave with ideas on how to improve their companies.

“The lunch and the parties happening in the Bay Area are going to have a substantial impact” on who figures out the strategies to win, Currier said. “So being in the same place matters,” he added.

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