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Against Board Turmoil, Sam Altman Reinstated as CEO of OpenAI

Nov 23, 2023 / ANC Editorial
OpenAI Sam Altman AI Technology chatGPT Corporate Governance

Pic: Sam Altman

23/11/2023 - In a dramatic turn of events at OpenAI, co-founder Sam Altman has been reinstated as CEO after a brief and tumultuous period marked by an internal power struggle. The company's board, which experienced significant upheaval during this period, will now include new members Bret Taylor, Larry Summers, and Adam D’Angelo, with D'Angelo serving as a link to the previous board.

This decision comes after a chaotic few days where Altman's position was under threat due to a boardroom coup. The situation was so severe that former president Greg Brockman, who had resigned in protest of Altman's firing, will now return to the company.

In a recent statement, OpenAI revealed that the initial task of the restructured board is to appoint additional members, expanding up to nine individuals. This move aims to overhaul the governance of OpenAI. Among those seeking representation on the expanded board are Microsoft, a major investor in OpenAI, and Altman himself. Microsoft CEO Satya Nadella, during a press tour, hinted at the company's ongoing commitment but stopped short of providing specifics.

An independent investigation into the events leading to this shake-up has been agreed upon by all parties involved. This investigation, likely conducted by an external law firm, aims to shed light on the underpinnings of the power struggle that has rocked the company.

Altman's return was confirmed by various key stakeholders, including Altman himself, who expressed on X (formerly Twitter) his dedication to maintaining the integrity and mission of OpenAI's team. Thrive Capital, another significant investor in OpenAI, lauded Altman's comeback as beneficial for the company, its employees, technology users, and the broader global community. Kelly Sims from Thrive Capital emphasized the vital role both Altman and Brockman play in steering OpenAI towards its ambitious goals.

Helen Toner, a central figure in the initial move to oust Altman, succinctly remarked on the resolution of this high-stakes corporate drama.

The reversal of Altman's dismissal, which comes after a rapid succession of leadership changes and internal unrest, is as unexpected as his initial departure. OpenAI's nonprofit board, initially firm in its decision to remove Altman, faced intense backlash, including threats of mass resignations and legal actions. This internal conflict was further complicated by the switching allegiance of Ilya Sutskever, OpenAI's chief scientist, who returned to Altman's side following persuasion.

Interim CEO Emmett Shear, who briefly held the position during the upheaval, commended the resolution as a balanced approach to ensuring stakeholder safety and fairness.

The reinstatement of Altman marks a significant moment for OpenAI, a company at the forefront of AI technology and innovation. This episode underscores the complex dynamics within tech companies grappling with rapid growth, governance challenges, and the responsibility of handling influential technologies.



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