OpenAI Faces Investor Backlash and Exodus of Key Personnel Following CEOs Dismissal
Summary:
OpenAI, the creator of ChatGPT, is facing backlash from investors following their dismissal of CEO Sam Altman. Anonymous sources revealed shareholders are appealing to Microsoft, the company's largest shareholder, to reinstate Altman. The board cited Altman's lack of transparent communication as the reason for his termination. Following Altman's dismissal, Thrive Capital halted its expected bid for staff shares and several top OpenAI personnel resigned. Altman has indicated willingness to return if the board steps aside, while Microsoft CEO Satya Nadella has voiced his support for Altman's decisions. There are also rumours Altman is developing a new AI venture, possibly with former OpenAI president, Greg Brockman.
OpenAI, the creator of ChatGPT, is dealing with backlash from its investors after the surprise dismissal of CEO Sam Altman. A Bloomberg report released on November 19, which identified sources close to the issue, stated that OpenAI shareholders have been reaching out to Microsoft, who owns the largest share of the company, in hopes of restoring Altman’s position. Altman was ousted as CEO on November 17, a position now held by former Chief Technology Officer Mira Murati. The board's announcement of Altman's departure cited a lack of transparency and forthrightness in his communications as the reason behind his removal, causing difficulties in fully comprehending the company's operations. In the wake of Altman’s departure, Thrive Capital, who were expected to lead a bid for staff shares, have not yet transferred the funds. There are also rumours that Thrive is pressuring the board to reestablish both Altman and former company president Greg Brockman’s positions within the organization.
Brockman, who resigned shortly after Altman was released, announced his own departure in a post on X following the news, stating “Given what happened today, I'm resigning.” After this announcement, several high-ranking OpenAI personnel, such as Jakub Pachocki, the director of research, Aleksander Madry, head of readiness, and Szymon Sidor, a top researcher, followed suit by leaving the company.
Altman is reportedly open to returning to OpenAI on the condition that the existing board members resign by the end of the weekend. Microsoft CEO Satya Nadella also seemed surprised by the board's decision and expressed his support for any of Altman’s future decisions. Despite this, there are rumours circulating since Altman left the company last Friday that he is setting up a new AI venture, with Brockman possibly joining him.
Published At
11/19/2023 3:22:25 AM
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