Is Open AI At The End? What Will Be The Next Chapter Of Open AI In a whirlwind of high-stakes maneuvers in Silicon Valley, Sam Altman has reclaimed the CEO position at OpenAI after a tumultuous five-day saga. This period of intense upheaval also saw significant changes to the company’s board of directors. The recent events unfolding in the artificial intelligence sphere have been nothing short of dramatic, with each character assuming their respective roles in the unfolding narrative.
Altman is set to resume his role as Chief Executive Officer (CEO) at OpenAI. Meanwhile, Brett Taylor, the former co-CEO of Salesforce, has been appointed as the chairman of the company’s primary board. OpenAI has officially announced via social media that former US Treasury Secretary Larry Summers will join the board alongside current member Adam D’Angelo, the co-founder and CEO of Quora.
The agreement for Altman’s reinstatement unfolded after numerous rounds of negotiations spanning five days within OpenAI. Throughout this period, virtually all employees of the company threatened to depart if Altman wasn’t reinstated. Noteworthy figures in Silicon Valley, including Nadella and Altman himself, alongside major financiers, took to social media multiple times, amplifying the drama surrounding the episode. Many individuals openly voiced their support for Altman across social platforms.
In the wake of Altman’s return to OpenAI, key figures in the narrative extended congratulations to him via social media. Former company president Greg Brockman was among those offering congratulations, and he also announced his own return to the company. Additionally, Chief Technology Officer Meera Murati will maintain her position.
OpenAI released a statement on Friday, revealing that an internal review by the board uncovered inconsistencies in Altman’s communication, casting doubt on his ability to fulfill his duties effectively. Consequently, the decision was made to remove Altman from his position.
However, an agreement for Altman’s reinstatement couldn’t be reached on Sunday, as Altman and others pressured current board members to step down, as reported by individuals familiar with the matter. In response, the outgoing board appointed former Twitch CEO Emmett Shear as interim CEO.
Shortly after this decision, a letter signed by the majority of OpenAI’s 770 employees was sent to the board, stating that if Altman wasn’t reinstated and all directors didn’t resign, they would collectively resign and consider opportunities, potentially including joining Microsoft. Murati, who had been named interim CEO on Friday following Altman’s removal, was among the signatories of the letter.
Investors Are In Relief?
Altman’s return to the company may appease investors and provide reassurance to employees who were considering departing, yet this recent development prompts inquiries regarding the trajectory of the ChatGPT manufacturer and other AI startups. These firms have invested significantly in sophisticated computing infrastructure for AI development and have secured substantial capital from investors. Consequently, the upheaval within these companies also impacts the investments placed in them.
Investors were not provided with information regarding Altman’s removal. Microsoft, which holds a stake of over $10 billion in OpenAI, was informed of Altman’s dismissal only moments before. With Microsoft possessing approximately 49% ownership in OpenAI, it promptly collaborated with other investors, including Thrive Capital and Tiger Global Management, to facilitate Altman’s reinstatement.
Why Altman Is Important?
In recent years, Altman, aged 38, has become the leading figure in a new phase of artificial intelligence technology. He’s widely recognized for his role in the success of ChatGPT. Lately, Altman has been pivotal in the AI community’s engagement with regulators. He’s engaged with prominent figures such as US President Joe Biden, British Prime Minister Rishi Sunak, and Indian Prime Minister Narendra Modi. Just last Thursday, he participated in a panel at the Asia-Pacific Economic Cooperation Conference (APEC), where the future of AI and its associated risks were deliberated upon.
Behind the scenes, according to sources, Altman encountered conflicts with his board members, particularly Sutskever. The disagreement revolved around the pace of Generative AI development, strategies for commercialization, and measures to mitigate potential public harm. Board members raised concerns about Altman’s entrepreneurial aspirations during this period.
Regardless of the reasons, Altman appears to play a critical role within OpenAI, with the organization’s future seemingly intertwined with his presence. Reports suggest that the disputes have now been fully resolved, but only time will tell how OpenAI will proceed in the future.
