A new interim chief executive has been appointed to the company behind major AI chatbot ChatGPT, with the ousted ex-CEO Sam Altman being tapped up to head a new Microsoft AI team.
Mr Altman, the founder of OpenAI and former CEO, was fired in a shock announcement on Friday, as the not-for-profit company board said Mr Altman “was not consistently candid in his communications with the board”.
The detail behind the alleged lack of candour was not published and the true reason for the sacking remains unclear.
There had been speculation that Mr Altman could return to the company after he posted a photo of himself wearing an OpenAI guest pass on social media platform X but Microsoft’s chief executive on Monday announced Mr Altman would join Microsoft to lead a new advanced AI research team.
Microsoft has invested billions of dollars into OpenAI as it developed its generative AI model, ChatGPT, which gave millions of people the ability to have questions answered by artificial intelligence (AI).
Earlier, the New York Times, based on an OpenAI memo, said OpenAI’s board stood by Mr Altman’s firing.
It reported that Emmett Shear, who was chief executive at Amazon’s streaming platform Twitch, has been appointed as the new interim CEO.
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Microsoft CEO Satya Nadella also confirmed Mr Shear’s reported appointment, saying the company was “looking forward to getting to know Emmett Shear and OAI’s new leadership team and working with them”.
In a statement that confirmed Mr Altman’s appointment, Mr Nadella added that OpenAI’s former president Greg Brockman would also be joining.
Mr Shear replaces Mira Murati – the firm’s chief technology officer, who was put in place as OpenAI’s interim chief executive on Friday.
According to online technology website The Information, dozens of staff quit at OpenAI after its chief scientist Ilya Sutskever announced Mr Altman would not be returning.
The Information report said Mr Sutskever told OpenAI staff Mr Altman’s behaviour and board interactions had undermined the company’s ability to supervise artificial intelligence development.
The CBI faces a deadline next September to refinance millions of pounds of funding put in place to avert its collapse during the autumn.
Sky News has learnt that a seven-figure facility put in place with banks will expire at the end of the third quarter next year.
While the size of the facility is unclear, sources have said it is likely to be several million pounds.
According to the business lobby group’s annual report and accounts, which was circulated to members late last week, it was able to survive the aftermath of a sexual misconduct scandal “through the backing of key members, the use of reserves, support from creditors and with bank financing”.
“The bank financing is due to terminate on 30 September 2024, after which it is the board’s current intention to look to renew the facility if required.
“The exceptional costs from the past year have now been paid and the organisation has been reshaped so that salary costs are appropriate given the expected level of income.”
On Friday, Sky News revealed that the CBI was urging members to swallow a further rise in fees even as it battles to regain its former standing among political and business leaders.
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Members will be asked at its annual meeting this week to approve a 5% rise in their subscription costs.
Self-styled as “the voice of British business”, the CBI has been slowly rebuilding its reputation, staging a slimmed-down version of its annual conference last month which featured an address by Jeremy Hunt, the chancellor.
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The group has been slashing costs by axeing a chunk of its workforce and closing most of its overseas offices following several rape allegations against former employees, which triggered an exodus of corporate members including Aviva and John Lewis Partnership.
Tony Danker, its director-general – who was accused of inappropriate behaviour but had nothing to do with the more serious allegations – stepped down in April weeks after being suspended.
The CBI briefly entertained autumn talks about a merger with Make UK, the manufacturers’ body, but these have now been curtailed.
An Abu Dhabi state-backed vehicle has moved closer to taking full control of The Daily Telegraph just hours after the launch of a regulatory probe that prevents it from removing key journalists from their posts.
Sky News has learnt that RedBird IMI has given the newspaper’s board and the government notice of its intention to activate a call option that will convert loans secured against the Telegraph titles and Spectator magazine into shares.
The move was communicated to key stakeholders late on Friday, and came as nearly £1.2bn was being transferred to an escrow account prior to its release to Lloyds Banking Group early next week.
A Whitehall source confirmed this weekend that the government had been notified about RedBird IMI’s move to exercise its option to take control of the shares.
A person close to the Abu Dhabi-based investor, which declined to comment formally, said it had already made it clear that it would seek to convert the loans “at an early opportunity”.
The activation of the call option does not mean the broadsheets fall under the immediate control of RedBird IMI, insiders pointed out on Saturday.
Lucy Frazer, the culture secretary, issued a Public Interest Intervention Notice (PIIN) on Thursday which has triggered an inquiry by Ofcom and the Competition and Markets Authority.
Pressure has been mounting in recent weeks from Conservative politicians for the takeover of the traditionally Tory-supporting Telegraph newspapers by a foreign state-backed entity to be probed under public interest and national security laws.
Sir Iain Duncan Smith and Lord Hague of Richmond, two former leaders of the party, have been among those who have called for scrutiny of the deal.
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RedBird IMI has insisted that it would preserve the newspapers’ editorial independence and offered to give the government a legally binding assurance of this intention.
RedBird IMI has also pledged not to complete the acquisition of the media assets until it has received government approval.
Image: Culture Secretary Lucy Frazer
On Friday, Ms Frazer confirmed a Sky News report that she would preserve the independence of the Telegraph during the investigations by making an Interim Enforcement Order preventing the Barclay family or RedBird IMI from interfering in their operation.
The notice of the intention to exercise the call option takes two of Britain’s most influential newspapers a stage closer to a change of ownership for the first time in nearly 20 years.
The Barclay family, which has owned the Telegraph since 2004, has been in dispute with Lloyds for years about the repayment of a £700m loan and hundreds of millions of pounds in interest.
Ms Frazer is seeking regulators’ responses before the end of January, after which the takeover of the broadsheet newspapers could be approved or blocked.
RedBird IMI is funded in large part by Sheikh Mansour bin Zayed Al Nahyan, the owner of Manchester City, has agreed that a trio of independent directors, led by the Openreach chairman Mike McTighe, will remain in place while the inquiries is carried out.
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RedBird IMI’s move to fund the loan redemption has circumvented an auction of the Telegraph titles which has drawn interest from a range of bidders.
The hedge fund billionaire and GB News shareholder Sir Paul Marshall had been agitating for the launch of a PIIN.
The Telegraph auction, which has also drawn interest from the Daily Mail proprietor Lord Rothermere and National World, a London-listed local newspaper publisher, is now effectively over.
Until June, the newspapers were chaired by Aidan Barclay – the nephew of Sir Frederick Barclay, the octogenarian who along with his late twin Sir David engineered the takeover of the Telegraph in 2004.
Lloyds had been locked in talks with the Barclays for years about refinancing loans made to them by HBOS prior to that bank’s rescue during the 2008 banking crisis.
The CBI is urging members to swallow a further rise in fees even as the lobby group battles to regain its former standing among political and business leaders.
Sky News understands that CBI members will be asked at its annual meeting next week to approve a 5% rise in their subscription costs.
It comes less than three months after the organisation – which styles itself as ‘the voice of British business’ – won a lifeline from banks which agreed to provide sufficient funding to avert collapse in the aftermath of a sexual misconduct scandal.
The CBI has been slowly rebuilding its reputation, staging a slimmed-down version of its annual conference last month which featured an address by Jeremy Hunt, the chancellor.
In a circular to members, it said the fee hike was in line with previous years.
However, the group has been slashing costs by axeing a chunk of its workforce and closing most of its overseas offices in an attempt to restore its finances to a more stable footing.
The crisis which erupted earlier this year, which followed several rape allegations against former employees, triggered an exodus of corporate members including Aviva and John Lewis Partnership.
Tony Danker, its director-general – who was accused of inappropriate behaviour but had nothing to do with the more serious allegations – stepped down in April weeks after being suspended.
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The CBI briefly entertained talks about a merger with Make UK, the manufacturers’ body, but these have now been curtailed.
The business group declined to comment on Friday, although an insider said it was “standard operating practice…to adjust prices for inflation”.