Ousted OpenAI CEO Sam Altman and board open talks to negotiate his possible return

Until Monday, OpenAI's board had largely refused to engage with the CEO they fired, Mr Sam Altman. PHOTO: AFP

SAN FRANCISCO – Mr Sam Altman, members of the OpenAI board and the company’s interim chief executive officer have opened negotiations aimed at a possible reinstatement of the ousted CEO at the artificial intelligence (AI) start-up he co-founded, according to people with knowledge of the matter.

Discussions are happening between Mr Altman, CEO Emmett Shear and at least one board member, Mr Adam D’Angelo, said the people, who asked not to be identified because the deliberations are private and they may not come to fruition. The talks also involve some of OpenAI’s investors, many of whom are pushing for his reinstatement, one of the people said.

If Mr Altman returns, it would be as CEO again of the ChatGPT creator, according to one person. In one scenario being discussed, Mr Altman would become a director on a transitional board, one of the people said. Former Salesforce co-CEO Bret Taylor could also serve as a director on a new board, multiple people said.

That the board and Mr Altman are in communication is a significant development because until Nov 20, the directors largely refused to engage with the CEO they fired on Nov 17, several people have said.

OpenAI shareholders angling for Mr Altman’s reinstatement include Thrive Capital, Khosla Ventures and Tiger Global Management, people with knowledge of the matter told Bloomberg. Prominent venture capital firm Sequoia Capital is working alongside the group, another person said.

On Nov 20, the company’s vice president of Global Affairs Anna Makanju sent a memo to staff saying the company had been in “intense discussions” with the board, Mr Altman and Mr Shear to unify the company. The message came after most of OpenAI’s roughly 770 employees threatened to quit if Mr Altman were not reinstated, among other demands.

There is a push to resolve the chaos surrounding the company’s leadership before Thanksgiving, said one person, in the hope that employees do not spend the holiday with uncertainty looming over the state of their jobs.

The board has come under intense scrutiny for its decision to fire Mr Altman, saying that the CEO was not “consistently candid in his communications”. In the days since, board members and staffers have said that the CEO’s removal was unrelated to “malfeasance” or “safety”, leaving an information vacuum. Mr Satya Nadella, CEO of OpenAI’s largest investor Microsoft Corp., has said publicly that he has have been given no explanation.

Even CEO Shear has been left in the dark, according to people familiar with the matter. He has told people close to OpenAI that he does not plan to stick around if the board cannot clearly communicate to him in writing its reasoning for Mr Altman’s sudden firing.

Until Friday, the company’s board consisted of Mr Altman, president Greg Brockman, chief scientist Ilya Sutskever, Quora CEO D’Angelo, tech entrepreneur Tasha McCauley and Ms Helen Toner, director of strategy at Georgetown’s Centre for Security and Emerging Technology. After Mr Altman’s exit, Mr Brockman left the company in protest.

OpenAI declined to comment on the negotiations. BLOOMBERG

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