Artificial Intelligence (AI) has conquered the top position in the tech industry’s future. OpenAI is presently at the forefront of the revolution. However, in a short span of one week, the seismic shifts within the organisation, notably the sudden departure of its Chief Executive Officer (CEO), Sam Altman, have shaken the industry. Here is everything you need to know about the drama happening at the OpenAI, including the key players, unfolding events and potentially far-reaching consequences surrounding the unexpected series of events.
Who is Sam Altman?
To understand the importance of Altman’s departure, it is essential to recognise his crucial role in the genesis of OpenAI. Altman is one of the original founders of the organisation. He was behind the process of securing vital funding for the company back in 2015 from some very influential investors, including Elon Musk and Peter Thiel. As the organisation transformed into what it is today, Altman grew in the organisation.
From being a partner at the startup incubator Y Combinator to assuming the role of the president at OpenAI in 2019, he played crucial roles at every step. When ChatGPT was launched in 2022, it brought OpenAI into the limelight as the creator of the fastest-growing chatbot application. For the unaware, Altman and Musk had co-chaired the board at OpenAI till 2019, after which Altman became full-time CEO.
The surprising exit
On 17th November, a bombshell dropped when OpenAI’s board of directors unexpectedly announced the departure of Sam Altman. The tech community was bewildered by the update as there were no prior signs of something like this happening at the organisation. The unconventional timing and how the announcement was made and departing from the customary post-market hours protocol made the exit more mysterious. The board claimed the primary reason behind his expulsion from the organisation was Altman’s lack of consistency in communication and transparency. They claimed the board lost confidence in his leadership.
The departure raised eyebrows not only because it was abrupt but also because Altman climbed the ladder to become a prominent face of the future of AI. As the CEO of OpenAI, he played a significant role in giving the right direction to the company through the transformative launch of ChatGPT, making the sudden severance all the more puzzling for industry observers.
Unraveling the mystery
Following his departure from the company, speculations and rumors spread like wildfire on social media. The industry experts begin scrutinising the board’s statement for clues. Altman finally broke the silence on X (formerly Twitter) and expressed his affection for his time at OpenAI. Still, he did not provide any concrete details about the circumstances that led to his departure. His statement’s absence of clarity further intensified the tech industry’s curiosity. The desire to get a more comprehensive understanding of the events spiked across social media platforms and the industry itself.
i loved my time at openai. it was transformative for me personally, and hopefully the world a little bit. most of all i loved working with such talented people.
— Sam Altman (@sama) November 17, 2023
will have more to say about what’s next later.
🫡
The void of information created around Altman’s departure from the organisation was filled with speculations and stories with technology journalists, industry analysts, and the general public attempting to piece together a narrative that could shed some light on the series of events.
OpenAI’s President quits
But the drama was far from ending. Adding another layer to the havoc, co-founder and president of OpenAI, Greg Brockman, stepped down from the post of chairman on the same day Altman was removed from the organisation. The board was expecting him to retain other roles at the organisation. However, subsequent events revealed his intention to sever ties with OpenAI entirely.
Brockman’s departure was more than enough to bring the “new leadership” at OpenAI to its knees. It raised questions about the underlying issues that might have resulted in the departure of both Altman and Brockman. The speculations led to the belief that there was a more profound internal struggle or misalignment within the organisation.
Altman’s Firing: Behind the scenes
Greg Brockman’s disclosure of the events leading to Altman’s firing shed light on the internal dynamics, offering a glimpse into the backstage of OpenAI’s leadership drama. Altman reportedly received a text message from OpenAI’s chief scientist, Ilya Sutskever, the evening before a decisive meeting. In this meeting, conducted over Google Meet, Altman faced dismissal by the entire board, with Brockman absent. Brockman later learned of his removal from the board but retention in other roles at the company, adding complexity to Altman’s abrupt departure.
Sam and I are shocked and saddened by what the board did today.
— Greg Brockman (@gdb) November 18, 2023
Let us first say thank you to all the incredible people who we have worked with at OpenAI, our customers, our investors, and all of those who have been reaching out.
We too are still trying to figure out exactly…
The revelation of these behind-the-scenes interactions heightened the sense of intrigue surrounding Altman’s exit. The lack of a unified narrative from OpenAI’s leadership further fueled speculation about the factors that led to such a consequential decision.
The ‘Why’ behind Altman’s firing
Though the exact reasons for Altman’s removal from the organisation were still hazy, tech journalist Kara Swisher’s insights suggest a “misalignment” between OpenAI’s for-profit and non-profit arms. Furthermore, she reported that there were concerns by Chief Scientist Ilya Sutskever about the company’s increasing focus on profitability, and it played a crucial role in the chronology of the events. Altman allegedly prioritised profits and product development over AI safety, which becomes concerning within OpenAI’s non-profit sector and complicates the organisation’s situation.
Scoop: There are about to be a lot more major departures of top folks at @OpenAI tonight and I assume Altman will make a statement tonight. But, as I understand it, it was a “misalignment” of the profit versus nonprofit adherents at the company. The developer day was an issue. https://t.co/eIE4zctv4X
— Kara Swisher (@karaswisher) November 18, 2023
Though it is not confirmed if Swisher’s reporting was what happened behind the scenes, it brought a fundamental tension within OpenAI to the forefront. In short, there was a lack of balance between the pursuit of profit and the original ethos of the organisation as a non-profit entity dedicated to advancing AI for the benefit of humanity. The clash of such objectives hinted at a more profound struggle on an ideological level simmering beneath the ‘all sparkling face value’ of the organisation.
Role of Ilya Sutskever
The shakeup at the leadership level brought tensions between Altman and key figures on the board, including Quora CEO Adam D’Angelo, entrepreneur Tasha McCauley, and Georgetown’s Helen Toner. Notably, chief scientist at OpenAI Ilya Sutskever, who is also the last co-founder left on the board, reportedly clashed with Altman over the latter’s growth-oriented focus, especially concerning plans to customise ChatGPT.
Sutskever is best known at the organisation for prioritising AI safety. He allegedly voiced concerns to the board and gained support against Altman. In the aftermath, Altman stepped down as chairman, and OpenAI’s president, Greg Brockman, also relinquished the role, with interim CEO Mira Murati taking charge amid the company’s internal restructuring.
Interestingly, all the mess happened on a Google Meet! On Thursday, Sutskever contacted Altman and asked him to join the talk the next day at noon. Everyone was present when he joined the Google Meet, apart from Brockman. Sutskever informed Altman he was fired. Nineteen minutes later, Brockman was brought to the call, where Sutskever informed him that he was being kicked out from the board.
The most shocking revelation was about Microsoft not being looped in about Altman’s removal from the organisation, despite being a major investor. Soon after the announcement, Microsoft took a significant hit as its share prices dropped significantly, reducing its value by tens of billions of dollars.
New leadership at OpenAI
As Altman and Brockman departed from the company, OpenAI announced new leadership. Former Twitch CEO Emmett Shear was hired as the interim Chief. On the other hand, Mira Murati was hired as the Chief Technology Officer.
The bid to bring Altman back
The for-profit arm of OpenAI that major investors, including Microsoft back, expressed dissatisfaction with the decision to remove Altman. Notably, Microsoft has invested around USD 13 billion in the company. It underscores the importance of Altman’s leadership for OpenAI’s profitability. Reports suggested that the board contacted him within 24 hours of removing Altman to explore possibilities of bringing him back.
Furthermore, an external push to bring Altman back to OpenAI highlighted the complex web of interests around OpenAI. Several tech companies, including Microsoft, have significant investments in the company. The investment is not meant merely for the non-profit endeavours but also for the potential profitability of the organisation under the leadership of, well, Altman! The external pressure put light on the delicate balance that the organisation has to maintain between its mission-driven non-profit aspirations and the financial interests of its investors.
The unsuccessful reunion
The situation’s complexity paced towards the point of no coming back when over 700 employees gave a deadline to bring back Altman, but the board failed to comply. Efforts to bring back Altman and Brockman faced challenges. The board had agreed to employee demands that included the board’s resignation and the former leaders’ return, but it did not materialise in time. As a result, at least three top researchers at the company resigned.
What happened behind the curtains was that on Sunday, Altman and Brockman came back to the company’s premises on Murati’s invitation. However, by the deadline given by the employees, nothing concrete happened. A new board construction was discussed, with names like Marisa Mayer, Brian Chesky, and Sheryl Sandberg floated. Though there were signs that Murati convinced Altman and Brockman to join back, it did not happen. Sutskever informed the world that Altman refused to join back. Later, dozens of employees quit OpenAI.
But the turmoil did not end there. OpenAI employees started tweeting the exact phrase repeatedly: “OpenAI is nothing without its people.” Around 550 of 700 employees signed a letter demanding the resignation of the entire board of directors. They threatened to quit and join Microsoft unless Altman and Brockman were brought back. Shockingly, one of the signees was none other than Sutskever. Not only did he sign the letter, he called his actions “a big mistake”. He wrote 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.” Altman responded with three heart emojis.
❤️❤️❤️ https://t.co/NL3nqrjKUo
— Sam Altman (@sama) November 20, 2023
The resignation of the researchers highlighted the internal dissent within OpenAI’s ranks. It showcased how Altman’s leadership was seen at the company as several employees openly supported him. In contrast, others chose to maintain a distance from the organisation in light of the recent events.
Microsoft swoops in, Satya Nadella hires Sam Altman and Brockman both
Interestingly, Microsoft, which owns almost half of OpenAI, recently announced that it has hired Altman and Brockman to lead the new AI research team. Microsoft’s CEO Satya Nadella announced that Sam Altman is joining Microsoft along with several other OpenAI staff. Taking to X, Microsoft chief Satya Nadella said, “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.”
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
As of now, there is a cloud of uncertainty over the future of the company that has assured its employees that negotiations are underway to bring the former leadership back. Altman, appreciative of his colleagues, has hinted at his love for the OpenAI team. However, there is a possibility that in the end, Altman might contemplate establishing his own AI company, and the former employees who support him would make a significant shift to leave OpenAI. The future of OpenAI hangs in the balance, with the potential for groundbreaking developments in the days to come.
Meanwhile, social media is having fun with memes and jokes about how the first job that AI took was of OpenAI head Sam Altman and the irony of ‘people’ issues haunting the AI industry.
