A ton of drama unfolded in the technology sector recently, with OpenAI, the hottest startup at this time, had its CEO, Sam Altman, abruptly fired, then reinstated a few days after. Following the Chief Executive’s removal, several OpenAI employees revolted, threatening to join Microsoft if OpenAI’s board remained firm on their decision, but according to the latest report, it was actually a bluff to force the firm to bring back Altman. As it turned out, most OpenAI employees did not want to work for Microsoft, as it would have resulted in the loss of significant perks and other reasons.
A former OpenAI employee allegedly says that joining Microsoft was a bluff, while others felt pressure to sign an open letter
There was relief among OpenAI staffers that they did not have to jump ship to Microsoft, with Business Insider reporting that several employees, both former and current, have stepped forward, stating that joining the software giant was only a bluff in an attempt to reinstate Altman back to the position of CEO. One major reason for not joining Microsoft was that OpenAI employees would miss out on a ton of perks, ranging from a lucrative salary to equity in the company and a tender offer.
Base salaries at OpenAI typically start from $300,000, with an equity package worth $2 million over four years, with some workers getting much more. Even though Microsoft agreed to hire all OpenAI employees at the same compensation level, there was only a verbal agreement involved and nothing that was legally binding at the time. One employee also believed that it was unlikely that Microsoft would pay departing staff members for the equity that they would have lost had they joined the technology giant.
The tender offer would also have been canceled, and that equity would have been worth nothing. A current OpenAI employee says that no one wanted to work at Microsoft, calling the firm the slowest of all the major companies, believing that OpenAI functioned in the entirely opposite fashion. Some employees also felt pressured to sign the open letter, threatening to resign from the AI startup if Altman was not reinstated, but it is not like these people had formed a cult-like relationship with the CEO.
One employee said that Altman is not the best CEO, but millions of dollars and equity were at stake, so if OpenAI’s valuation were to tank, it would financially affect those employees too. The situation was not healthy at Microsoft either, with hundreds of employees reportedly furious that the company promised to match the salaries for several hundred OpenAI employees.
Remember that the company recently laid off more than 10,000 employees earlier this year, along with freezing salaries, slashing bonuses, and stock awards, so their anger is not misplaced. These employees were also livid at the fact that they were working for more than 12 hours daily and were living in constant fear that their names would come up shortly on the layoff list. Given the extent of the drama that transpired in the last few weeks, we are bound to get more inside information as to what happened during that time, so stay tuned.
News Source: Business Insider
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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