Microsoft CEO Nadella says OpenAI governance needs to change no matter where Altman ends up
Microsoft CEO Satya Nadella told CNBC’s Jon Fortt on Monday that the governance structure of OpenAI needs to change, three days after the sudden firing of CEO Sam Altman.
“At this point, I think it’s very clear that something has to change around the governance,” Nadella said. He added that Microsoft would have “a good dialogue with their board on that.”
In his first press interview since Altman’s ouster, Nadella dismissed concerns of long-term damage at OpenAI and said that the critical artificial intelligence research continues as does the partnership with Microsoft. But his comments didn’t clear up confusion surrounding where Altman and fellow OpenAI co-founder Greg Brockman, who was the company’s chairman, will ultimately end up.
Early Monday morning Nadella said that Altman, Brockman and their colleagues would join Microsoft as part of a new AI research group. That post followed news that ex-Twitch CEO Emmett Shear had been named OpenAI interim head as Altman looked to depart. Over the course of Monday, it became less evident that Altman and Brockman would actually be joining Microsoft.
Hundreds of OpenAI employees signed a letter to the company’s board demanding that they resign or else the staffers may choose to leave and join their former boss at Microsoft.
Nadella said it’s the choice of OpenAI employees whether they stay in their current roles or move to Microsoft, adding that his company has what it needs to keep innovating on its own.
“I’m open to both options,” he said.
The rapid reinstatement of Altman began to look like a possibility on Saturday as news surfaced that a group of prominent investors, including Microsoft, Tiger Global, Thrive Capital and Sequoia Capital were working to reverse the board’s decision from a day earlier. None of those firms had board seats, and they were caught unaware by the decision.
In a post on X late Saturday night, Altman wrote, “i love the openai team so much.” Brockman, who quit the company after the board removed him as chairman alongside the ouster of Altman, reposted the comment with a heart symbol. Other OpenAI employees did the same.
Nadella told Fortt that Microsoft respects OpenAI’s nonprofit roots and shares its belief that AI needs to be developed and rolled out in a safe manner.
“We want to make sure that we’re dealing with not only the benefits of technology, but the unintended consequences of the technology from day one, as opposed to waiting for things to happen,” Nadella said.
WATCH: A timeline of the drama between Sam Altman, OpenAI and Microsoft
Firefly’s CEO Jason Kim reacts during the company’s IPO at the Nasdaq MarketSite in New York City, U.S., August 7, 2025.
Jeenah Moon | Reuters
Last week’s liftoff also coincided with President Donald Trump‘s “space superiority” executive order, signed on Friday, that aims to create a permanent U.S. base on the moon.
Investors have also gained more clarity on the future of NASA following a whirlwind drama since Trump won the election.
Last week, the Senate confirmed Jared Isaacman as NASA administrator more than a year after he was first nominated to the position.
Trump withdrew the nomination from the Elon Musk ally earlier this year amid a public fallout, but renominated Isaacman in November.
Transportation Secretary Sean Duffy was tapped to temporarily run the space agency in the interim.
Google parent Alphabet on Monday announced it will acquire Intersect, a data center and energy infrastructure company, for $4.75 billion in cash in addition to the assumption of debt.
Alphabet said Intersect’s operations will remain independent, but that the acquisition will help bring more data center and generation capacity online faster.
In recent years, Google has been embroiled in a fierce competition with artificial intelligence rivals, namely OpenAI, which kick-started the generative AI boom with the launch of its ChatGPT chatbot in 2022. OpenAI has made more than $1.4 trillion of infrastructure commitments to build out the data centers it needs to meet growing demand for its technology.
With its acquisition of Intersect, Google is looking to keep up.
“Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data center load, and reimagine energy solutions to drive US innovation and leadership,” Sundar Pichai, CEO of Google and Alphabet, said in a statement.
Google already had a minority stake in Intersect from a funding round that was announced last December. In a release at the time, Intersect said its strategic partnership with Google and TPG Rise Climate aimed to develop gigawatts of data center capacity across the U.S., including a $20 billion investment in renewable power infrastructure by the end of the decade.
Alphabet said Monday that Intersect will work closely with Google’s technical infrastructure team, including on the companies’ co-located power site and data center in Haskell County, Texas. Google previously announced a $40 billion investment in Texas through 2027, which includes new data center campuses in the state’s Haskell and Armstrong counties.
Intersect’s operating and in-development assets in California and its existing operating assets in Texas are not part of the acquisition, Alphabet said. Intersect’s existing investors including TPG Rise Climate, Climate Adaptive Infrastructure and Greenbelt Capital Partners will support those assets, and they will continue to operate as an independent company.
Alphabet’s acquisition of Intersect is expected to close in the first half of 2026, but it is still subject to customary closing conditions.
WATCH: Here’s what’s happening to electricity bills in states with the most data centers
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