OpenAI has become the focal point of Silicon Valley corporate turmoil following the recent ousting of CEO Sam Altman
The unexpected removal of Sam Altman as OpenAI’s CEO on Friday has sent shockwaves through the tech industry, sparking a corporate drama in Silicon Valley. Altman, not only the CEO of the company responsible for the ChatGPT AI chatbot, is also the symbol of an AI revolution that captivates the public and investors while raising concerns among industry insiders and experts. Here, we address essential questions about the unfolding events and their significance.
What is OpenAI?
OpenAI, headquartered in San Francisco, is the company behind ChatGPT, a chatbot renowned for its impressive ability to generate highly convincing text responses across a range of tasks, from composing academic essays to crafting recipes and summarizing lengthy documents. The company is also credited with the development of Dall-E, a tool capable of generating images based on textual prompts. Prior to the recent events, OpenAI was reportedly engaged in discussions for a fundraising deal that would have valued the company at $80 billion (£64 billion).
Its 38-year-old CEO, Sam Altman, was closely associated with the success of ChatGPT, a platform that garnered 100 million users within two months of its launch on November 30, 2022.
Why was Altman fired?
Established as a non-profit organization, OpenAI operates under the oversight of a board, which manages its commercial subsidiary with Altman serving as the CEO. However, on Friday, the board declared Altman’s termination, citing his lack of consistent candor in communications with the board, impeding its ability to fulfill its responsibilities.
The board did not elaborate on the specific details of the aforementioned communications. Emmett Shear, the co-founder of the Twitch streaming platform and Altman’s immediate successor as interim CEO, clarified that the termination was unrelated to any disagreements concerning safety. Concerns have been raised by experts and tech professionals about the rapid development of AI systems by companies like OpenAI, with fears that such technology could eventually pose an existential threat.
However, reports indicate that Altman has engaged in discussions with Jony Ive, Apple’s former design chief, regarding the creation of a new AI hardware device. Additionally, Altman is purportedly in the process of securing funds for a new venture focused on producing chips designed to enhance and operate powerful AI systems.
What has happened since?
Amid a weekend filled with corporate turmoil, OpenAI’s investors, spearheaded by the largest contributor, Microsoft, made efforts to reinstall Altman. This initiative garnered backing from OpenAI staff, including the then-interim CEO Mira Murati, who has since been succeeded by Shear, marking OpenAI’s third CEO in as many days.
On Monday, Microsoft disclosed the recruitment of Altman and his close associate, former OpenAI president Greg Brockman, to lead a new advanced AI research unit.
What does this mean for OpenAI?
OpenAI’s workforce, consisting of 700 individuals, is in turmoil following Altman’s dismissal. In a public letter addressed to the board of directors released on Monday, over 600 staff members, including Murati, expressed their intention to resign and join Microsoft unless the board stepped down and reinstated Altman and Brockman (who had resigned following their removal from the board). Notably, Ilya Sutskever, OpenAI’s chief scientist and one of the four remaining board members, was among the signatories. On Monday, Sutskever conveyed profound regret for his role in Altman’s departure.
Could Microsoft buy OpenAI?
Finances would likely not pose a significant hurdle for Microsoft, even considering OpenAI’s suggested $80 billion valuation. Nevertheless, regulatory bodies in the US, the UK, and the EU would likely scrutinize the consolidation in the emerging market for generative AI. Microsoft recently completed the acquisition of the video game company responsible for Call of Duty, Activision Blizzard, a move that faced substantial regulatory challenges. Acquiring OpenAI, in which Microsoft holds a 49% stake, would likely present an even more formidable regulatory obstacle.
Could the uproar impede the progress of AI development?
Microsoft has indicated its willingness to welcome disheartened talent from OpenAI, with Altman and Brockman already actively engaged. CEO Satya Nadella mentioned that additional OpenAI staff had joined this duo, amid reports of three senior researchers departing the ChatGPT developer following the boardroom changes. If Altman does not return to OpenAI, it appears that the advancement of advanced AI will persist directly under Microsoft.
Altman remains committed to constructing artificial general intelligence (AGI), referring to an AI system capable of performing various tasks at or surpassing human intelligence levels. In a recent interview, he expressed the vision of developing AGI, ensuring its safety, and maximizing its benefits.
While OpenAI retains ownership of the potent models behind ChatGPT, Elon Musk’s latest venture, xAI, has demonstrated the rapid development of powerful new models. The company unveiled Grok, a prototype AI chatbot, claiming it took just four months of development.
