Nadella: Microsoft Eyed $25B OpenAI Talent Grab After Altman Firing

Microsoft was ready to spend nearly $25 billion to absorb OpenAI's top talent after Sam Altman's removal. CEO Satya Nadella revealed this during court testimony. He explained that Microsoft quickly created a backup plan. This plan involved establishing a new subsidiary to hire Altman, OpenAI co-founder Greg Brockman, and other employees. The estimated cost of $25 billion would have matched their compensation and equity expectations. What's interesting is that Nadella called Altman's firing "amateurish." Microsoft, despite being a major investor, received no clear explanation for the decision. The board only stated Altman was not "consistently candid." Ultimately, this backup plan was not needed. Altman returned as OpenAI's CEO just days later, and most employees remained. The bottom line is this testimony offers a closer look at how seriously Microsoft viewed this crisis and how quickly they acted to protect their AI investment.