OpenAI stunned employees, investors by ousting Chief Executive Officer Sam Altman, who more than any other figure had emerged as the face of artificial intelligence following the viral success of his company’s chatbot, ChatGPT. Several people, including OpenAI President Greg Brockman, have resigned, the board is facing investor pressure to reinstate Altman and there’s a possibility the board itself resigns in the coming days. Mira Murati, the company’s Chief Technology Officer (CTO) will serve as the interim chief in the meanwhile but there is still a lot unanswered about what went down at the company.
Sam Altman’s Ousting & Possible Return To OpenAI
Why In News
- OpenAI stunned employees, investors by ousting Chief Executive Officer Sam Altman, who more than any other figure had emerged as the face of artificial intelligence following the viral success of his company’s chatbot, ChatGPT.
- Several people, including OpenAI President Greg Brockman, have resigned, the board is facing investor pressure to reinstate Altman and there’s a possibility the board itself resigns in the coming days.
- Mira Murati, the company’s Chief Technology Officer (CTO) will serve as the interim chief in the meanwhile but there is still a lot unanswered about what went down at the company.
OpenAI
- OpenAI, a nonprofit co-founded by billionaire Elon Musk with Sam Altman (Elon Musk exited in 2018), launched ChatGPT on Nov. 30 last year, setting off a global sensation over generative AI technology that quickly became the world’s fastest-growing software application.
- It set off a wave of investments and announcements across industries to use AI to enhance everything from financial services and healthcare to entertainment and media.
- Trained on reams of data, generative AI can create human-like content, helping users spin up term papers, complete science homework and even write entire novels. After ChatGPT’s launch, regulators scrambled to catch up: the European Union revised its AI Act and the U.S. kicked off AI regulation efforts.
Reasons For The Departure
- 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,” OpenAI’s decision to fire Altman followed wide-ranging disagreements between the chief executive 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 commercialization of the company, the person said.
- Altman’s ambitions may have also played a role. Altman has been looking to raise tens of billions of dollars from Middle Eastern sovereign wealth funds to create an AI chip startup, according to a person with knowledge of the investment proposal.
- 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 Altman raising funds off of OpenAI’s name and these new companies not sharing the same governance model as OpenAI.
Board Under Pressure To Reinstate Altman
- Reports this weekend suggested his sacking had angered current and former employees who were worried it might affect an upcoming $86bn (£69bn; €79bn) share sale.
- A day after OpenAI’s board of directors fired former CEO Sam Altman in a shock development, investors in the company are plotting how to restore him in what would amount to an even more surprising counter-coup.
- Venture capital firms holding positions in OpenAI’s for-profit entity have discussed working with Microsoft and senior employees at the company to bring back Altman, even as he has signaled to some that he intends to launch a new startup.
- The firm’s venture capitalist backers and the tech giant Microsoft – which has a $10bn stake in OpenAI – have also called for his return, Despite being OpenAI’s biggest backer by far, Microsoft Corp. had only a few minutes advanced notice about Altman’s firing, said a person familiar with the matter.
- Microsoft CEO Satya Nadella was blindsided by the board’s decision, and has been in touch with 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 startup to add AI features to many of its best-known software products and seemingly leap ahead of rivals like Alphabet Inc.’s Google in the artificial intelligence arms race.
- In a public statement, Nadella tried to ease any concerns 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 roadmap; and remain committed to our partnership,”.
Sam Altman Reaction
- The ex-boss of leading artificial intelligence firm OpenAI has posted a photo of himself at its HQ, following reports he is set to return.
- Writing on X, formerly Twitter, Sam Altman is pictured holding a guest ID pass and comments: “First and last time i ever wear one of these”.
- A day after the board fired him in a surprise move that rocked the tech world, Altman was talking with OpenAI executives about improving the company’s governance structure while he discusses with some core OpenAI researchers and others loyal to Altman how they could start a new AI company.
- The former OpenAI’s co-founder and president- Greg Brockman (who also resigned from OpenAI, following Sam’s sacking) is expected to join the effort and the project which is still under development.
- It further stated, “The exact nature of the venture wasn’t immediately known. More details, meanwhile, have also emerged about Altman’s broader ambitions in developing AI.”
- It is said that it has been in talks with semiconductor executives, including Arm- the chip designer.
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