Microsoft almost executed a $30 billion "hackquisition" of OpenAI following the ousting of CEO Sam Altman in November 2023. Faced with the risk of losing their $13 billion investment in OpenAI, Microsoft scrambled to either reinstate Altman or hire the entire company. Text messages from OpenAI's COO, Brad Lightcap, revealed that Microsoft would have needed to pay $25 billion to cover employee equity or $29 billion if they included Ilya Sutskever. Microsoft’s commitment to match employee compensation indicated their serious intent, but the OpenAI board rehired Altman within hours, making the deal moot. The concept of "hackquisition" emerged from this scenario, where Microsoft aimed to acquire talent and intellectual property without a traditional acquisition framework. At that time, no one owned equity in OpenAI, complicating the valuation. Microsoft had rights to 49% of OpenAI’s profits, which they would have argued equated to ownership. The article suggests that had the deal gone through, total costs could have exceeded $30 billion when considering payouts to other investors and compensation for Altman, who had no direct equity stake. In hindsight, the deal represents a significant opportunity lost for Microsoft. OpenAI's valuation skyrocketed to around $850 billion in just over two years. The "hackquisition" model that emerged after this incident has influenced how tech companies approach startup acquisitions, with Microsoft leading the charge. The fear that Altman might launch a competing venture added urgency to Microsoft's efforts, reflecting broader trends in tech acquisitions where talent acquisition has become as crucial as outright ownership.