Imagine if you were the CTO of a company, massively underestimated your AWS bill, and presented your board with something enormous. Maybe something like that happened?
Or, if I wanted to speculate to the extremely negative; what if the training and operating costs ballooned to such a degree, that the deal with Microsoft was an attempt to plug the cash hole without having to go to the board requesting an enormous loan? Because the fact that Copilot (edit: previously known as Bing Chat and Bing Image Creator) is free and ChatGPT (edit: and DALL-E 3) are not should be a red flag...
I think the problem there is that the original CTO is now the interim CEO and they are on the board. So while that kind of scenario could make sense, it's a little hard to picture how the CTO would not know about something like that, and if they did you'd presumably not make them CEO afterward.