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OpenAI: The Mysterious CEO Sacking

By Taruni Choubey (Columnist)


We all know OpenAI – a renowned non-profit research company dedicated to ensuring that artificial intelligence benefits humanity. The company gained prominence following its pathbreaking invention of ChatGPT, a tool that has made life hassle-free for most of us. However, a recent drama that unfolded in the heart of Silicon Valley raised many eyebrows. Sam Altman, co-founder and CEO of OpenAI found himself embroiled in a whirlwind of events that shook the very foundation of the company.

 

Born on 22nd April 1985 in Chicago, Illinois, Samuel Harris Altman is an American entrepreneur and investor who was exposed to technology since the young age of 8. He went on to pursue a bachelor’s degree in Computer Science from Stanford University but dropped out in two years. This was when he co-founded Loopt, a location-based social networking app which was sold to Green Dot Corporation in 2012 for $43.4 million. He served as the President of Y combinator, a prestigious start-up accelerator, from 2014-2019.

 

In July 2015, Sam Altman called for a meeting between his co-founder Ilya Sutskyver and Elon Musk. In this meeting, it was decided to launch a non-profit artificial intelligence company to benefit humans. While the Tesla founder played a prominent role in the start-up phase, he took a back seat in 2018 to focus on other projects. In 2019, Sam Altman stepped down from his position in Y combinator to shift his complete focus on OpenAI. The company went on to become a for-profit with the launch of GPT-2. In July the same year, Microsoft invested $1billion in the company and provided it with supercomputers. This investment led to Microsoft owning 49% of OpenAI.

 

The AI war began on 17th November 2023 when OpenAI's Board of Directors made an abrupt decision in the absence of the company’s President Greg Brockman to remove Altman from his position as CEO. The decision, shrouded in secrecy and lacking any clear explanation, sent shockwaves through the AI community and left many questioning the future of OpenAI. Even though the Board offered Brockman to stay as President, he chose to leave and side with Altman. Speculations about the reasons behind Altman's ouster ran rampant, ranging from disagreements over the company's commercialization strategy to concerns over his leadership style. Mira Murati who was the CTO then took the position of interim CEO.

 

The next day, Sam Altman responded to him being fired with a sentimental tweet that caught the attention of people who questioned the reason for his removal. This reaction showed the love and support people had for the ex-CEO. The Board said there were concerns with transparency that would make it tedious to adequately oversee Altman in the future. Altman visited OpenAI with a guest pass for a meeting which led to people speculating his return as the CEO but on the next morning, the co-founder of Twitter, Emmett Shear, was declared interim CEO. Meanwhile, within OpenAI, the fallout from Altman's removal was palpable. Employees expressed their dismay and concern for the company's direction, with some even threatening to resign.

 

Amidst the uncertainty, Microsoft swooped in to play a pivotal role. With its significant stake in the company, Microsoft wielded considerable influence and sought to mediate the situation. Recognizing the importance of Altman's vision and leadership, Satya Nadella took to Twitter to share that Microsoft had appointed him and Brockman to lead a new advanced AI research team. Nadella's intervention proved to be a turning point, as it paved the way for Altman's return to OpenAI.

 

The absence of a clear explanation for the removal and the tweet by Nadella led to OpenAI employees publishing an open letter to the Board threatening to leave OpenAI and join Microsoft, where all employees had been promised jobs, unless the Board would step down and bring back Altman. A majority of 700 of the 770 employees signed this letter. Ilya Sutskyver, the Chief Scientist of OpenAI, was first in favour of the removal but then apologized and supported Sam Altman’s return as CEO. On November 22, just days after their ouster, Sam Altman and Greg Brockman were reinstated as the CEO and the President Of OpenAI.

 

Though the exact reasons behind the initial removal are unclear, it is evident that the decision had significant repercussions. Altman’s reinstatement marked the end of a tumultuous period but also signalled a new chapter for OpenAI. With a strengthened Board and a renewed sense of purpose, the company is poised to continue its pioneering work in AI, guided by Altman's vision and leadership. This incident underscores the importance of transparency, effective communication, and a shared commitment in the ever-evolving landscape of technology.

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