Sam Altman’s ousting and possible return to OpenAI: What we know
Sign up now: Get ST's newsletters delivered to your inbox
OpenAI’s decision to fire Mr Sam Altman followed wide-ranging disagreements between the chief executive and his board.
PHOTO: AFP
Follow topic:
SAN FRANCISCO – OpenAI stunned employees, investors and much of Silicon Valley on Nov 17 by ousting chief executive Sam Altman,
Almost instantly, the world’s best-known AI start-up, which has been in talks to sell employee shares to investors at an US$86 billion (S$115.6 billion) valuation, was thrown into disarray.
Several people, including OpenAI president Greg Brockman, have resigned. The board is facing investor pressure to reinstate Mr Altman and there is a possibility the board itself resigns in the coming days.
Here is the latest on the saga.
Altman clashed with board on safety, ambitions
OpenAI’s decision to fire Mr Altman followed wide-ranging disagreements between the CEO and his board, according to a person familiar with the matter. The debates included differences of opinion on AI safety, the speed of development of the technology and the commercialisation of the company, the person said.
Mr Altman’s ambitions may have also played a role. He has been looking to raise tens of billions of dollars from Middle Eastern sovereign wealth funds to create an AI chip start-up, according to a person with knowledge of the investment proposal.
Mr Altman was also courting SoftBank Group Corp chairman Masayoshi Son for a multibillion-dollar investment in a new company to make AI-oriented hardware in partnership with former Apple designer Jony Ive.
The board may have been put off by his raising funds off OpenAI’s name and these new companies not sharing the same governance model as OpenAI, the person said.
OpenAI’s chief scientist appealed to board
Dr Ilya Sutskever, an OpenAI co-founder and the company’s chief scientist, told Mr Altman he was out, and is thought to be at the centre of the board’s clash with him. A month ago, Dr Sutskever’s responsibilities at the company were reduced, reflecting friction between him and Mr Altman and Mr Brockman.
Dr Sutskever later appealed to the board, winning over some members, including Ms Helen Toner, the director of strategy at Georgetown’s Centre for Security and Emerging Technology.
Altman blindsided in a Google Meet chat
Mr Altman was blindsided by the move. In a joint statement posted on X, formerly Twitter, Mr Brockman and Mr Altman said Dr Sutskever texted the CEO on the night of Nov 16 asking to chat at noon the following day.
“Sam joined a Google Meet and the whole board, except Greg, was there,” the post said. “Ilya told Sam he was being fired and that the news was going out very soon.”
Shortly after, Mr Brockman was told he was being removed from his position as chairman of the board, but would hold on to his role as president.
Microsoft caught off guard, CEO supporting Altman
Despite being OpenAI’s biggest backer by far, Microsoft Corp had only a few minutes’ advance notice about Mr Altman’s firing, said a person familiar with the matter. Microsoft CEO Satya Nadella was blindsided by the board’s decision, according to people familiar with the situation, and has been in touch with Mr Altman and pledged to support him in whatever steps he takes next.
The tech giant bet billions on OpenAI and used its partnership with the start-up to add AI features to many of its best-known software products and seemingly leapt ahead of rivals like Alphabet’s Google in the AI arms race.
In a public statement, Mr Nadella tried to ease any concerns that Mr Altman’s departure could hurt his company’s long-term AI plans. “We have a long-term agreement with OpenAI with full access to everything we need to deliver on our innovation agenda and an exciting product road map; and remain committed to our partnership,” he wrote on a blog post.
Share sale up in the air
Just weeks ago, OpenAI employees were on the cusp of being able to sell their shares at a staggering US$86 billion (S$115.5 billion) valuation. But in the hours following Mr Altman’s departure, hundreds of millions of dollars of trading in closely held OpenAI shares on the secondary market have been thrown into limbo, according to people familiar with the matter.
Some transactions are on hold and some have been cancelled outright, the people said. Thrive, which was expected to lead a tender offer for employee shares, has not yet wired the money and has made it clear to the OpenAI board that Mr Altman’s departure will affect the decision.
Board under pressure to reinstate Altman
OpenAI investors are now pressing the company’s board to reverse the decision to fire Mr Altman, according to people with knowledge of the matter. Mr Altman is open to returning to the company, one of the people said. In one scenario under consideration, members of the current OpenAI board would step down.
If Mr Altman does not return, more employees may jump ship – possibly joining him in whatever project he launches next and further jeopardising OpenAI’s position as the leader in the AI market.
In their joint post on Friday, Mr Brockman and Mr Altman said: “Greater things coming soon.” BLOOMBERG
