Sam Altman, once again CEO of OpenAI, has reclaimed the helm of the top tech company, culminating in the resolution of a tumultuous board-led ouster that triggered an unprecedented employee revolt.
Altman's reinstatement brings closure to a gripping corporate saga that gripped the tech industry over the last few days.
Corporate Drama Inside OpenAI
Last Friday, Nov. 17, the board overseeing OpenAI abruptly removed Altman, citing alleged inconsistencies in his communication with the board, leading to an eruption of internal unrest.
The board's decision set off a chain of rapid developments that mirrored a drama-filled television series.
Within a week, OpenAI underwent leadership changes, appointing interim CEOs, only for Altman's reported alliance with Microsoft to be retracted.
Negotiation deadlines for Altman's return passed, while employees threatened collective resignations, showcasing the magnitude of internal solidarity.
As the uprising among employees intensified, Ilya Sutskever, OpenAI's chief scientist and board member, had a change of heart: "I profoundly regret being part of the board's decisions," he conveyed in a message on X. He not only endorsed the letter but also stepped down from the board, though he continues to work as an employee at OpenAI.
Sam Altman Returns as CEO
In a bid to quell the upheaval, OpenAI announced on Tuesday an 'agreement in principle' for Altman's return as CEO, accompanied by an overhaul of the board.
We have reached an agreement in principle for Sam Altman to return to OpenAI as CEO with a new initial board of Bret Taylor (Chair), Larry Summers, and Adam D'Angelo.
— OpenAI (@OpenAI) November 22, 2023
We are collaborating to figure out the details. Thank you so much for your patience through this.
Notable figures such as Bret Taylor, Larry Summers, and Adam D'Angelo, a former early Facebook employee, and Quora's CEO, join the revamped board.
NBC News reports that the preceding board's removal of Altman lacked specific details but hinted at communication discrepancies, sparking debates over AI development pace and control, issues that had simmered within the board for over a year.
Microsoft, a pivotal investor in OpenAI, expressed support for the board's changes and Altman's reinstatement, emphasizing the significance of stability and informed governance.
We are encouraged by the changes to the OpenAI board. We believe this is a first essential step on a path to more stable, well-informed, and effective governance. Sam, Greg, and I have talked and agreed they have a key role to play along with the OAI leadership team in ensuring… https://t.co/djO6Fuz6t9
— Satya Nadella (@satyanadella) November 22, 2023
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Altman, renowned within San Francisco's tech circles, expressed his enthusiasm for resuming leadership, emphasizing his dedication to OpenAI's mission in an informal statement: "i love openai, and everything i've done over the past few days has been in service of keeping this team and its mission together."
The turbulence within OpenAI elicited widespread support for Altman, including endorsements from tech luminaries like Elon Musk and Eric Schmidt. Over 700 out of 770 employees penned a letter urging Altman's return, underlining the precariousness of the startup's future.
Despite the internal strife, The New York Times reports that investor interest in OpenAI remains robust, with reports indicating an upcoming funding round valuing the company at over $80 billion, led by Thrive Capital.
Altman's reinstatement and the board's restructuring mark a significant turn, possibly stabilizing the company after a period of uncertainty. The transition is anticipated to reinforce OpenAI's partnership with Microsoft, which is vital for its AI development endeavors.
Related Article : Report: OpenAI Investors Explore Legal Action Against Board After CEO Sam Altman Ouster
