The past few days have been absolutely chaotic for the tech world. The board of OpenAI, the company behind ChatGPT, shocked everyone by firing CEO Sam Altman.
The news sent shockwaves through the industry. But the turmoil was not over. The surprise ouster set off a series of dramatic twists, with Microsoft emerging as a key player in the unfolding saga. And now OpenAI is facing a potential mutiny among staff. Hundreds of OpenAI employees have since signed a letter threatening to quit and join Microsoft unless the AI startup’s board resigns and reappoints Sam Altman.
The beginning of chaos and surprise ousting of CEO
The story of dramatic upheaval of the world’s leading artificial intelligence company OpenAI started with the ouster of Sam Altman, who Ashot to fame with the launch of its artificial intelligence (AI) chatbot ChatGPT. Altman is seen as the trusted face of generative AI.
The OpenAI board fired its CEO and founder, Sam Altman, citing a loss of confidence in his leadership abilities. The company said in a statement that Altman “was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities,” the company said.
The sudden departure sent shockwaves through the artificial intelligence (AI) industry and tech community. What ensued was a series of unexpected twists and turns that plunged the company and its staff into upheaval, leaving the future of OpenAI in uncertainty. The OpenAI board’s decision to oust Altman has sparked intense criticism, catching investors and Altman off guard.
Hours later, OpenAI co-founder and president Greg Brockman resigned. In a post on X, Brockman said “Sam and I are shocked and saddened by what the board did today.” He said that both of them were both notified of their removal from the board on Friday by OpenAI co-founder and chief scientist Ilya Sutskever, who is also a board member.
OpenAI’s board of directors include chief scientist Ilya Sutskever, independent directors Quora CEO Adam D’Angelo, technology entrepreneur Tasha McCauley, and Georgetown Center for Security and Emerging Technology’s Helen Toner.
3 days, 3 CEOs at OpenAI
Amidst the turmoil, the San Francisco-based OpenAI witnessed rapid CEO changes. After Altman was suddenly fired, OpenAI’s chief technology officer Mira Murati stepped into the role as interim chief executive as the board was quietly conducting its own CEO search in parallel. Late Sunday, the board announced Emmett Shear, the co-founder of Amazon’s streaming service Twitch, as the company’s third CEO in three days.
OpenAI Staff threaten to quit unless board resigns
OpenAI’s employees appear to be unified in support of Altman and Greg Brockman. More than 700 OpenAI employees, and a member of its board, have threatened to resign and join Microsoft if the company’s board doesn’t resign and Altman and Brockman aren’t reinstated.
“The process through which you terminated Sam Altman and removed Greg Brockman from the board has jeopardized all of this work and undermined our mission and company,” the letter reads. “Your conduct has made it clear you did not have the competence to oversee OpenAI.”
Ilya Sutskever, the company’s chief scientist and a member of its board, who played a key role in the ousting of Altman, also signed the letter asking the board to resign. Shortly before the letter was released, Sutskever posted on X: “I deeply regret my participation in the board’s actions. I never intended to harm OpenAI. I love everything we’ve built together and I will do everything I can to reunite the company.”
Many others, including Mira Murati, took to social media to post “OpenAI is nothing without its people.”
It is not just employees. OpenAI’s biggest investors are also pressing the company to reinstate Sam Altman as chief executive officer, according to reports. There are speculations that the board is reconsidering the decision. This uncertainty surrounding whether the board might reverse Altman’s dismissal added another level of complexity to the unfolding story.
Microsoft’s strategic play
Microsoft, which is OpenAI’s biggest stakeholder with $13 billion investment, has emerged as a winner amidst the chaos and OpenAI fiasco.
Microsoft CEO Satya Nadella has announced that Altman and Brockman would be joining the tech giant to head a new advanced AI research unit. Nadella apparently left the door open for Altman to return to OpenAI or take on a leadership role at Microsoft, emphasizing the company’s flexibility in dealing with the unfolding situation. “We look forward to moving quickly to provide them with the resources needed for their success,” he said.
We remain committed to our partnership with OpenAI and have confidence in our product roadmap, our ability to continue to innovate with everything we announced at Microsoft Ignite, and in continuing to support our customers and partners. We look forward to getting to know Emmett…
— Satya Nadella (@satyanadella) November 20, 2023
Microsoft’s stocks reached a record high after the company said that Sam Altman will join the company to head its artificial intelligence innovation domain. On Monday, Microsoft shares rose 2.1% to an all-time high close of $377.44. The tech giant’s market valuation reached $2.8 trillion. Yang Wang, senior analyst at Counterpoint Research, described Satya Nadella’s decision to hire Altman and Brockman as a “master move” which would further boost the company’s in-house AI capabilities.
Altman’s next move
Despite the upheaval, Altman himself has signaled that he could still return. “We have more unity and commitment and focus than ever before. We are all going to work together some way or other, and I am so excited. One team, one mission,” he said on X.
In another social media post, Altman said that he and Nadella remain focused on the success of his former company.
It is not clear whether Altman and Brockman would return to OpenAI or join Microsoft. But if they decide to come back return to OpenAI with a new board, they could have more authority in the company’s direction and roadmap.
The unexpected removal of CEO Sam Altman has thrown OpenAI and its subsidiary, ChatGPT, into a state of flux. The board’s decisions, employee reactions, and the involvement of key players like Microsoft have created a Silicon Valley boardroom saga that continues to evolve rapidly. The tech world remains on edge as it awaits further clarity on the future leadership and direction of OpenAI.
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