Sam Altman Out At OpenAI: “Not Consistently Candid With The Board”

Ouch!

In a quite shocking development on a Friday afternoon, OpenAI – the company behind the increasingly ubiquitous ChatGPT – has dropped a press release announcing that Sam Altman – the high-profile tech exec who co-founded the company – is out as both CEO and board member.

Their reason is very clear:

Mr. Altman’s departure follows a deliberative review process by the board, which concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities.

The board no longer has confidence in his ability to continue leading OpenAI.

In a statement, the board of directors said:

“OpenAI was deliberately structured to advance our mission: to ensure that artificial general intelligence benefits all humanity. The board remains fully committed to serving this mission. We are grateful for Sam’s many contributions to the founding and growth of OpenAI. At the same time, we believe new leadership is necessary as we move forward. As the leader of the company’s research, product, and safety functions, Mira is exceptionally qualified to step into the role of interim CEO. We have the utmost confidence in her ability to lead OpenAI during this transition period.”

Additionally, Greg Brockman, who helped found OpenAI alongside Mr. Altman, will step down as chairman of the board but remain in his role at the company, reporting to the C.E.O., the company said.

Chief Technology Officer Mira Murati will be interim chief executive officer. 

Co-founded by Altman in 2015, the company released ChatGPT about a year ago, setting off a rush of interest in AI technology. About 100 million people use ChatGPT each week, the company said in November, and more than 90% of Fortune 500 businesses are building tools on OpenAI’s platform.  The company has been in talks to sell employee shares to investors at a valuation of $86 billion.

It’s certainly a fascinating move – with Altman as the very face of the new AI frontier, and just days after Elon Musk unveil xAI’s Grok.

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Read the full press release below:

Chief technology officer Mira Murati appointed interim CEO to lead OpenAI; Sam Altman departs the company.

Search process underway to identify permanent successor.

The board of directors of OpenAI, Inc, the 501(c)(3) that acts as the overall governing body for all OpenAI activities, today announced that Sam Altman will depart as CEO and leave the board of directors. Mira Murati, the company’s chief technology officer, will serve as interim CEO, effective immediately.

A member of OpenAI’s leadership team for five years, Mira has played a critical role in OpenAI’s evolution into a global AI leader. She brings a unique skill set, understanding of the company’s values, operations, and business, and already leads the company’s research, product, and safety functions. Given her long tenure and close engagement with all aspects of the company, including her experience in AI governance and policy, the board believes she is uniquely qualified for the role and anticipates a seamless transition while it conducts a formal search for a permanent CEO.

Mr. Altman’s departure follows a deliberative review process by the board, which concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities. The board no longer has confidence in his ability to continue leading OpenAI.

In a statement, the board of directors said: “OpenAI was deliberately structured to advance our mission: to ensure that artificial general intelligence benefits all humanity. The board remains fully committed to serving this mission. We are grateful for Sam’s many contributions to the founding and growth of OpenAI. At the same time, we believe new leadership is necessary as we move forward. As the leader of the company’s research, product, and safety functions, Mira is exceptionally qualified to step into the role of interim CEO. We have the utmost confidence in her ability to lead OpenAI during this transition period.”

OpenAI’s board of directors consists of OpenAI chief scientist Ilya Sutskever, independent directors Quora CEO Adam D’Angelo, technology entrepreneur Tasha McCauley, and Georgetown Center for Security and Emerging Technology’s Helen Toner.

As a part of this transition, Greg Brockman will be stepping down as chairman of the board and will remain in his role at the company, reporting to the CEO.

OpenAI was founded as a non-profit in 2015 with the core mission of ensuring that artificial general intelligence benefits all of humanity. In 2019, OpenAI restructured to ensure that the company could raise capital in pursuit of this mission, while preserving the nonprofit’s mission, governance, and oversight. The majority of the board is independent, and the independent directors do not hold equity in OpenAI. While the company has experienced dramatic growth, it remains the fundamental governance responsibility of the board to advance OpenAI’s mission and preserve the principles of its Charter.

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The question is – will Musk break his post-anti-semitism debacle silence to comment?