Sam Altman and Greg Brockman will lead a new advanced AI research team at Microsoft Corp. (MSFT  ) following their ouster from OpenAI and the board's refusal to bring them back.

What Happened: Microsoft CEO Satya Nadella confirmed Altman and Brockman will not be returning to OpenAI. Instead, both will now lead a new advanced AI research team at Microsoft.

While Nadella was reportedly furious about Altman being fired from OpenAI, this seems to be the next best option available for OpenAI's single largest investor.

This also allows Microsoft to minimize the damage and keep as much OpenAI talent with itself as possible, given how dozens of high-level executives and employees have come out in support of Altman over the weekend.

Nadella confirmed that Altman and Brockman will be joined by their former OpenAI colleagues at Microsoft's new AI team.

"We're extremely excited to share the news that Sam Altman and Greg Brockman, together with colleagues, will be joining Microsoft to lead a new advanced AI research team," Nadella said in a post.

Microsoft has moved extremely fast to address the fallout from Altman's shock firing. "We look forward to moving quickly to provide them with the resources needed for their success," Nadella said.