OpenAI CEO Sam Altman faced a dramatic shakeup within the board of directors that led to his ouster and subsequent reinstatement. Altman, speaking at a private gathering in Davos, Switzerland, described the events as wild and admitted feeling confused and caught off guard. The unique structure of OpenAI, known for its popular AI tool ChatGPT, played a significant role in Altman’s surprise departure.
Unlike most major tech founders, Altman does not possess any equity in OpenAI. The power is concentrated within the board of directors, which controls the 501(c)(3) charity, OpenAI Inc. Microsoft’s $10 billion investment deal with OpenAI Global, a capped-profit company, also complicates the organizational chart further. Altman’s removal from the company was reportedly due to concerns over AI safety and OpenAI’s role in protecting it.
Following Altman’s ouster, the entire staff of OpenAI threatened to resign, prompting his swift reinstatement. Altman revealed that approximately 98% of the company signed a letter stating they would resign if he was not restored as CEO. This commitment from employees, who would risk losing their equity, highlighted their dedication to OpenAI’s mission. Altman also acknowledged that investors, including Microsoft, stood to lose their stakes in the company.
When questioned about OpenAI potentially becoming a traditional for-profit company, Altman expressed firm opposition. He stated that OpenAI would never conform to traditional company structures but suggested revisiting the current organizational setup. Altman emphasized the need to consider alternative structures but acknowledged that the focus at present revolved around the board.
Altman questioned the line of questioning, pointing out that the focus should be on the impact of AGI (Artificial General Intelligence) rather than the soap opera of OpenAI’s internal struggles. He urged everyone to shift their attention to the mission at hand.
In conclusion, Sam Altman’s surprise ouster and subsequent reinstatement at OpenAI shed light on the unique structure of the organization. The events highlighted the dedication of OpenAI’s staff and the potential ramifications for both employees and investors. Altman expressed the need to consider alternative structures while emphasizing OpenAI’s commitment to its mission.
