Playing With A $80 Billion Company: Sam Altman Reinstated As CEO Of OpenAI!

Mark Lagarde
Wed, 22 Nov 2023 13:05:20 +0000
Job Movements, People, People Radar, Sam Altman

Artificial Intelligence at Work? OpenAI announced on Tuesday evening that the previously fired CEO, Sam Altman, has been reappointed as its CEO, marking a significant reversal from his recent removal by the company’s board. This decision follows vigorous efforts by Altman’s supporters, including employees and investors, to challenge his dismissal. The company’s board will undergo substantial changes, with several members who opposed Altman being replaced.

OpenAI released a statement confirming an initial agreement to reinstate Altman as CEO. The company expressed gratitude for the patience shown during this period and acknowledged ongoing discussions to finalize details.

This development concludes a tumultuous week at OpenAI, the creator of ChatGPT and a leading figure in the AI industry. The return of Altman and Greg Brockman, the company’s president who resigned in support of Altman, along with the board’s restructuring, represent significant shifts for the organization.

Altman, in a message, expressed his commitment to OpenAI and its mission, highlighting his efforts to maintain team unity. He also emphasized strengthening the partnership with Microsoft, OpenAI‘s major investor.

The new board of directors at OpenAI will feature notable figures, including Bret Taylor, an early Facebook executive and former co-CEO of Salesforce; Lawrence Summers, former Treasury Secretary; and Adam D’Angelo, CEO of Quora, who remains as the sole member from the previous board. Taylor is set to serve as the board chairman.

Microsoft, represented by CEO Satya Nadella, voiced support for these changes, deeming them crucial for more effective governance. In board discussions, D’Angelo, Tasha McCauley, and Helen Toner insisted on specific conditions from Altman, including an independent review of his leadership. Eventually, Toner and McCauley agreed to leave the board, recognizing the need for a fresh start.

The outgoing board had concentrated on limiting Altman’s influence, including barring him and Brockman from the board and scrutinizing potential board candidates. Altman’s initial removal last Friday by the board and Brockman’s subsequent resignation sparked a strong response. Altman’s allies, including technology industry figures and OpenAI employees, rallied for his reinstatement. By Sunday evening, after intensive negotiations, the board maintained its stance against Altman’s return.

However, the situation rapidly changed when Microsoft announced the formation of a new advanced AI lab with Altman, Brockman, and others. The majority of OpenAI‘s staff threatened to leave for Microsoft if Altman wasn’t reinstated, putting the startup’s future at risk. The board’s initial decision to oust Altman was led by four members, including Ilya Sutskever, an OpenAI founder. However, as employee dissent grew, Sutskever retracted his support for the board’s decision, expressing regret and leaving the board while remaining with the company.

Thrive Capital, leading a new investment round valuing OpenAI at over $80 billion, reaffirmed its commitment to partnering with the company. The news of Altman’s reinstatement was met with celebrations among OpenAI employees on Tuesday night.