In another twist on the OpenAI saga that raged over the weekend, Microsoft has swooped in and hired Sam Altman and Greg Brockman just after OpenAI confirmed Altman won't be returning, CEO Satya Nadella announced in a post on X. 

The pair, along with colleagues are joining Microsoft "to lead a new advanced AI research team." Nadella added that Microsoft "remain[s] committed to our partnership with OpenAI," but the move looks a giant hedge on that bet. It also means the much of OpenAI's talent may be moving to Microsoft, which may stall progress on the widely-used ChatGPT product. 

Altman has largely remained quiet since news of his firing dropped Friday, other than thanking OpenAI colleagues for their support. However, he confirmed his hiring by Microsoft, saying on X that "the mission continues." In a reply to that post, Nadella said he was "super excited" to have Altman as CEO of the new group. "We’ve learned a lot over the years about how to give founders and innovators space to build independent identities and cultures within Microsoft, including GitHub, Mojang Studios," he added. 

The appointment was announced just after it was suggested that Altman may return to OpenAI, following his sudden firing on Friday. That was preceded by an outpouring of support for Altman from OpenAI employees, many of whom shared hearts on social media. 

Talks between the parties broke down and OpenAI subsequently said that Altman (and co-founder Greg Brockman) would not return, according to reports. Instead, Twitch co-founder Emmett Shear was reportedly appointed as OpenAI's new CEO. 

The story is likely far from over, as the confirmation of Altman's firing and subsequent hiring by Microsoft raise multiple questions. Microsoft has invested $13 billion and owns a 49 percent stake in the for-profit segment of OpenAI and recently unveiled its Copilot AI assistant that's powered by OpenAI's technology. 

However, OpenAI has an odd "capped-profit" corporate structure with both a for-profit and non-profit body that has an impact on Microsoft's investment. And despite Nadella's words, the partnership with OpenAI will no doubt be affected by Microsoft having its own AI research team — particularly since it will be led by OpenAI's former CEO. With all that, expect further developments. 

Update Nov 20, 2023 at 8:42 AM ET: OpenAI co-founder, board member and chief scientist Ilya Sutskever has released a statement on recent developments: "I deeply regret my participation in the board's actions. 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 wrote on X. 

This article originally appeared on Engadget at https://www.engadget.com/microsoft-snatches-sam-altman-and-former-openai-colleagues-to-form-its-own-ai-research-team-082755685.html?src=rss

In May 2022, just months before Elon Musk acquired Twitter (now X), the Federal Trade Commission (FTC) hit the platform with a $150 million fine and consent decree that imposed stipulations for safeguarding users' personal data. The ruling was imposed after the FTC found that Twitter had violated a previous consent decree by inappropriately sharing user phone numbers and email addresses with advertisers.

After acquiring Twitter, Elon Musk went to court in an attempt to overturn that consent decree, arguing that the FTC had increased scrutiny on X and pressured a third-party assessor to find fault with its security practices. In a post on X at the time, Musk called the FTC's actions "a shameful case of weaponization of a government agency for political purposes and suppression of the truth."

However, a federal judge just rejected that motion, ruling that his court lacked the authority to block the FTC's court order, while also blocking Musk's request to avoid a deposition that's part of a separate investigation, The Washington Post reported. In other words, X must still adhere to the strict privacy reporting standards imposed by the FTC last year. 

The judge listed other issues with X's argument, noting that the FTC had good reason to increase scrutiny on X after Musk took over. "The government says this increase in investigative activity should not be surprising because Musk directed at least five rounds of terminations, layoffs or other reductions in X Corp.’s workforce, which affected the security, governance, risk and compliance team," he wrote in the ruling. 

He added that the third-party assessor said he faced steady delays due to executive turnover at X. Finally, the judge ruled that Musk can't avoid being deposed by the FTC, as "the government argues that the major changes to the company appear to have been initiated by Musk himself." 

Musk's FTC problems started shortly after his acquisition of X, when key executives on Twitter's privacy and security teams departed. Still, Musk seemed willing to comply with the rules, telling employees at the time that "Twitter will do whatever it takes to adhere to both the letter and spirit of the FTC consent decree." 

Back in March, though, the FTC stepped up its probe into Musk's actions in an effort to get more information about the company’s handling of layoffs, X Premium subscriptions, the "Twitter Files" and other issues. 

Meanwhile, the platform can't seem to stay out of the news, as IBM recently said it would pull advertising on X after discovering its ads were being placed next to pro-Nazi content. Musk himself faced criticism after he appeared to endorse an antisemitic post on the platform. 

This article originally appeared on Engadget at https://www.engadget.com/judge-rejects-attempt-by-x-to-nullify-ftc-privacy-settlement-111536396.html?src=rss