Microsoft Executives' Early Skepticism About OpenAI

Through internal emails from Microsoft executives disclosed during the Musk-Altman lawsuit, the behind-the-scenes story of the two companies' early relationship and investment decision-making process has come to light.

Microsoft executives' skeptical views circa 2017-2018

• At the time, Microsoft's AI team judged that partnering with OpenAI was "not worth engaging with."
• The research team believed Microsoft's own research was further ahead, and the PR team was negative about supporting the concept of "machines beating humans."
• Even CEO Satya Nadella expressed doubts, saying it was hard to pin down exactly what research OpenAI was doing.

Background and conflict behind the investment decision

• At the time, OpenAI was focused on developing AI for video games, and Microsoft was concerned about a potential loss of about $150 million if it provided support.
• However, Microsoft ultimately decided to invest based on the strategic judgment that it needed to prevent OpenAI from teaming up with Amazon.
• Later, when OpenAI established a for-profit entity, Microsoft went on to make a landmark $1 billion investment.