The AI company’s board stated Altman lacked consistent candor, eroding confidence
OpenAI terminates co-founder and CEO Sam Altman for alleged dishonesty. The AI firm’s board cites Altman’s lack of consistent candor in communications, resulting in a loss of confidence. Altman’s removal is a significant upheaval in Silicon Valley, given his prominence following the success of ChatGPT. The board declares the necessity for new leadership and announces Altman’s departure from both the CEO position and the company’s board in a statement on Friday.
Mr. Altman’s exit follows a thorough board review, determining he lacked consistent candor in communications, impeding the board’s duties, the statement noted. The specifics of what Altman allegedly concealed from the board were unclear.
Altman responded to the contentious announcement with an upbeat tweet.
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. Will have more to say about what’s next later,” he expressed.
Mira Murati, OpenAI’s CTO, assumes the interim CEO role, as stated. Having been part of the company’s leadership for five years, Greg Brockman will relinquish the board chair position but retain the role of OpenAI president, according to the announcement.
Brockman publicly announced his departure on Friday, stating, “Based on today’s news, I quit.
The sudden announcement caught employees off guard, with many learning about the abrupt ouster through an internal announcement and the company’s public blog. OpenAI hastily arranged an emergency all-hands meeting on Friday afternoon to discuss the news with employees, as per a source familiar with the matter, as reported by Reuters.
Altman, recognized as a prominent figure in the AI field since the release of ChatGPT in November 2022, has been a leading voice. The generative AI chatbot garnered over 100 million users in under a year.
The 38-year-old has spearheaded endeavors to develop “artificial general intelligence” (AGI), aiming to create an AI system capable of accomplishing any task that a human can.
Altman, a co-founder of the company established in 2015, initially as a non-profit with a $1 billion endowment from high-profile supporters like Elon Musk, Peter Thiel, and LinkedIn co-founder Reid Hoffman. Initially serving as co-chairs alongside Musk, their objective was “to advance digital intelligence in the way that is most likely to benefit humanity as a whole, unconstrained by a need to generate financial return.” In 2019, OpenAI underwent a transformation adopting a “capped profit” model, with Altman assuming the role of CEO.
Following the launch of ChatGPT last year, Altman gained prominence. A fervent advocate for artificial intelligence, he has also been a leading voice calling for regulation and highlighting the associated risks as the technology reshapes society. Altman testified before the U.S. Congress in May, offering insights into the form AI legislation should take.
Altman, often regarded as a Silicon Valley prodigy, followed the footsteps of other tech founders by leaving Stanford in 2005 to launch his social-networking app, Loopt, ultimately selling it for $43 million. In 2014, he was enlisted to serve as the president of the startup accelerator Y Combinator but departed in 2020 to concentrate on OpenAI.
The introduction of ChatGPT substantially heightened his prominence, earning him titles such as the father of ChatGPT and the “Oppenheimer of our age.” Earlier this year, Altman embarked on a 22-country tour, engaging with world leaders like Rishi Sunak, Emmanuel Macron, and Narendra Modi, among others.
A mere day before his dismissal, he delivered a speech at the Asia-Pacific Economic Cooperation conference in San Francisco. During the conference, he asserted that AI would constitute “the greatest leap forward of any of the big technological revolutions we’ve had so far.” Despite this optimism, he also acknowledged the imperative need for regulatory guardrails.
Altman expressed optimism, stating, “I really think the world is going to rise to the occasion, and everybody wants to do the right thing.”
Following news of Altman’s departure, Microsoft, a significant business partner of OpenAI, experienced a further decline in stocks. Despite this, Microsoft assured that the leadership change would not impact its relationship with OpenAI.
During an emergency all-hands meeting on Friday afternoon, Murati reassured employees about the stability of OpenAI’s partnership with Microsoft. According to Reuters, the executives at Microsoft, including CEO Satya Nadella, continue to express confidence in the startup.
In a statement on Microsoft’s website, Nadella affirmed, “We have a long-term agreement with OpenAI … Together, we will continue to deliver the meaningful benefits of this technology to the world.
