The seismic shift caused by Sam Altman's move to Microsoft, a move that is expected to reshape the dynamics of the industry, has the tech community abuzz with speculation. Manish Maheshwari, Co-Founder of Fanory.ai, speaking to CNBC-TV18, said the move is a strategic win for Microsoft, which he speculates could now re-evaluate its investment in OpenAI.

Maheshwari said with Altman's proven expertise, Microsoft gains not just an individual but a powerhouse team that positions them at the forefront of artificial intelligence (AI) innovation.

“Microsoft has been an early backer of OpenAI, they have placed their bet on the right horse, and today they have been able to get almost the entire relevant team of OpenAI, it's an accurate hire for them at almost zero cost," he said.

Further, he said the anticipated surge in Microsoft's valuation is keeping market observers on the edge — the US markets are poised for a reaction, with expectations running high for Microsoft's valuation to experience an upward trajectory, validating their newfound strength in AI.

As Altman joins Microsoft, questions arise about the future of Microsoft's investments in OpenAI. The departure of key personnel, including Altman, could prompt a reassessment of Microsoft's commitment to OpenAI, potentially redirecting their focus toward internal AI initiatives.

“Altman joining Microsoft changes the whole equation. OpenAI without Sam has a different goal in terms of how it wants AI to progress, and may not want to commercialise things very quickly, so the investors may not see value to the same extent when Sam was there and the company was in that strategic direction. So to my mind, yes, there would be a serious reassessment of the investment in OpenAI after this," he explained.

Meanwhile, Microsoft and Khosla Ventures said they stand firmly behind Altman, underscoring the industry's recognition of Altman's strategic importance in shaping the future of AI.

To be clear, Khosla Ventures wants @sama back at @OpenAI but will back him in whatever he does next

— Vinod Khosla (@vkhosla) November 19, 2023

Maheshwari said right now, AI has divided the tech community into two camps — sceptics, dubbed "Doomers", and the "Boomers," who believe AI holds the key to elevating human intelligence to unprecedented heights.

"These two camps could and should continue to exist — I think different companies will take different stances across the spectrum," he said.

Despite the ongoing debate, Maheshwari said there is a prevailing sentiment that investments in AI will witness a substantial increase. The tangible impact of AI in solving everyday problems is driving this optimism, he said, paving the way for heightened economic activity in the AI sector.

Acknowledging the influence of Sam Altman, Maheshwari suggests that irreversible damage has been done in what can be termed as the "Sam Altman Saga." The potential exodus of key figures from OpenAI raises concerns about the organisation's future, leaving it as a mere shell of its former self.

“If key people, key researchers and key leaders move out of Open AI, it will just remain a name and a shell company. The soul or the driving force of the company has moved out and if many of them choose to join Microsoft, then it;s good for Microsoft. I think too much has transpired too quickly and Microsoft has come in and cashed in on it," he added.

Microsoft emerges as the primary beneficiary in this transformative period, he said. The die is cast, and there's no turning back from the moment when Microsoft cements its position as a leader in the AI revolution.

Also read: The OpenAI fight is a moshpit of super egos

First Published:Nov 20, 2023 6:35 PM IST