Tag Archives: Board & Management Changes

Sam Altman was ‘shocked and saddened’ after he was fired as CEO of OpenAI

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Sam Altman and Greg Brockman were "shocked and saddened by what the board did" and are still trying to figure out what exactly happened. The former CEO and the former President of OpenAI have published a post on X, sharing the details of what they do know and how they found out the former was being fired. Apparently, company co-founder and chief scientist Ilya Sutskever invited Altman for a meeting at noon on Friday, which was then attended by the whole board except for Brockman. It was at that meeting that Altman found out he was being fired and that OpenAI was going to announce it "very soon."

Shortly after that, Sutskever reportedly invited Brockman to a separate Google Meet conference, where he was told that Altman had gotten fired and that he was being removed from the board. However, the board members told him that he was "vital to the company and would retain his role." Brockman chose to quit on his own. The two former OpenAI executives also said that the rest of the company's management team outside of interim CEO Mira Murati only found out about the board's decision after Altman was already removed from his post. "The outpouring of support has been really nice; thank you, but please don’t spend any time being concerned," their joint statement reads. "We will be fine. Greater things coming soon."

While OpenAI's c-suite shakeup might have come as a surprise to onlookers, employees were reportedly very much aware that turmoil was brewing within the organization. According to The Information, Altman's ouster followed internal arguments on whether OpenAI was developing artificial intelligence technology in a safe manner. During the all-hands meeting after Altman's firing, employees asked Sutskever if the CEO's removal was a "coup" or a "hostile takeover." That seems to imply that some personnel were wondering whether the organization's leadership removed Altman because he was was commercializing OpenAI's technology too quickly at the expense of potential safety concerns. 

Bloomberg says Altman and Sutskever were the two people within the organization who butted heads the most when it came to the speed of development and the company's commercialization. Sutskever is one of the two employees leading a team within OpenAI that's dedicated to preventing its technologies from going rogue. He and his allies within the company may also have been put off by Altman raising funds using OpenAI's name, Bloomberg continues. The former CEO had huge ambitions for OpenAI, and the news organization says he was looking to secure funding worth tens of millions of dollars from Middle Eastern sovereign wealth funds in order to develop AI chips that can compete with NVIDIA processors. 

The well-sourced journalist and podcast host Kara Swisher posted similar information on X. She said employees felt that "the profit direction of the company under Altman and the speed of development" were at odds with the "nonprofit side dedicated to more safety and caution." Swisher also said she expects more major departures of "top folks" at OpenAI. The Information reported afterward that three senior researchers have left the company: Jakub Pachocki, OpenAI's director of research, Aleksander Madry, who headed a team evaluating potential risks from AI, and Szymon Sidor, who'd been with the organization for seven years. 

These concerns over the safety of AI development within the organization didn't pop up overnight, however. OpenAI has been grappling with the issue from the beginning, and it's the reason why a group of employees left in 2020 to form their own startup that became known as Anthropic. Still, investors were blindsided by Altman's firing, Forbes reports. Even Microsoft, which pledged to invest $10 billion into the organization over the next few years, reportedly learned about his removal a minute before the announcement went out. 

Update, November 18, 2023, 1:40AM ET: This story has been updated to include additional details from Bloomberg's report.

Update, November 18, 2023, 3:04AM ET: Added information about the three senior researchers who left the company.

This article originally appeared on Engadget at https://www.engadget.com/sam-altman-was-shocked-and-saddened-by-openais-decision-to-fire-him-051538582.html?src=rss

OpenAI fires CEO Sam Altman as ‘board no longer has confidence’ in his leadership

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In a surprise shakeup of its c-suite Friday, OpenAI's board of directors announced that CEO Sam Altman has been fired and will be leaving both the company and the board, effective immediately. Chief Technology Officer Mira Murati has been named interim CEO.

Altman's oustering reportedly follows an internal "deliberative review process" which found he had not been "consistently candid in his communications with the board, hindering its ability to exercise its responsibilities," the company announced. As such, "the board no longer has confidence in his ability to continue leading OpenAI."

OpenAI, which owns popular AI chatbot ChatGPT, thanked Altman for his "many contributions to the founding and growth of OpenAI," but believes that "as the leader of the company’s research, product, and safety functions, Mira is exceptionally qualified to step into the role of interim CEO." The board added it has "the utmost confidence in her ability to lead OpenAI during this transition period.”

OpenAI's board is comprised of the company's Chief Scientist Ilya Sutskever, as well as Chairman and President Greg Brockman. Independent advisors, who hold no equity in the company, are also board members: Quora CEO Adam D’Angelo, tech entrepreneur Tasha McCauley and privacy advocate Helen Toner of the Georgetown Center for Security and Emerging Technology. Altman was also considered an independent advisor on the board, despite being CEO of the company prior to his departure.

Altman's personal profile has grown alongside the meteoric rise of generative AI technologies over the past year, making him something of the unofficial face for both OpenAI and the burgeoning industry as a whole. Previously the president of Y Combinator, Altman has appeared before Congressional panels and committees, attended Senate AI Insight forums and made numerous rounds at industry conferences.

The suddenness of Friday's announcement is certainly surprising given how steadily, and heavily, Altman has been promoting his company and its products in the days leading up to his termination.

Just last week, Altman took the stage at OpenAI's 2023 DevDay to announce a faster and more responsive GPT-4 Turbo platform as well as smaller, application-specific models simply dubbed GPTs. On Thursday Altman attended the Asia-Pacific Economic Cooperation CEO Summit in San Francisco. "Something has qualitatively changed,” he said during the event. “Now I can talk to this thing. It’s like the ‘Star Trek’ computer I was always promised… I think a lot of the world has collectively gone through a lurch this year to catch up.” 

Altman and Murati aren't the only ones caught in this shuffle. Brockman was also notified that he would have to step down from his role as board President, however, "based on today's news, I quit," he wrote to OpenAI employees in a company-wide email Friday.

Microsoft, which signed a "multibillion-dollar" partnership extension with OpenAI in January, was down in market trading Friday afternoon. Despite the stock price hit, Microsoft will maintain its existing partnership with OpenAI, a company spokesperson told Engadget via email. “We have a long-term partnership with OpenAI and Microsoft remains committed to Mira and their team as we bring this next era of AI to our customers.” the spokesperson said. However, according to an report by The Information, few people within the Microsoft organization were warned of Altman's sacking prior to the public news release, including teams tasked with developing products based on OpenAI tech. 

The software giant's stance isn't surprising given the reported details of its $10 billion investment this past January, which bumped OpenAI's valuation to $23 billion. Microsoft will reportedly receive a lion's share of OpenAI's profits, some 75 percent, until that investment has been repaid, whereupon that figure will reportedly drop to 49 percent.

"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, and to Mira and the team," Microsoft CEO Satya Nadella said in a prepared statement Friday. "Together, we will continue to deliver the meaningful benefits of this technology to the world."

Altman co-founded OpenAI with Elon Musk in 2015 as a nonprofit and has served as the CEO for the for-profit arm since 2019. The release of the company's ultra-popular ChatGPT conversational AI last November is credited with kickstarting the generative AI boom. 

The system, originally built atop the GPT-3.5 platform, initially enabled users to converse with a digital agent — one more capable than the previous generation of Siri, Alexa and Assistant — using natural language. Those capabilities quickly expanded to include myriad languages and modalities, as well as the ability to output programming code and control remote processes and devices through API access.

This article originally appeared on Engadget at https://www.engadget.com/openai-ceo-sam-altman-ousted-as-board-no-longer-has-confidence-in-his-leadership-204924006.html?src=rss