OpenAI, the creator of ChatGPT, has successfully concluded negotiations for the return of Sam Altman as CEO, marking a resolution after approximately 100 hours since his initial departure. This decision follows intense deliberations concerning the future trajectory of the company, a central player in the artificial intelligence boom. Here is the sequence of events at OpenAI that culminated in the decision to reinstate Sam Altman as CEO:
Challenging Days: The Path to Altman’s Return
At an Accelerated Pace Compared to Steve Jobs
The Chronology of a Hundred Crazy Hours
The Sensation Saga of Sam Altman
Challenging Days: The Path to Altman’s Return
In addition to Sam Altman‘s reinstatement, the company has committed to restructuring its board of directors, which was responsible for his dismissal. Notably, Bret Taylor, former co-CEO of Salesforce, has assumed the role of Chair, while Larry Summers, former U.S. Treasury Secretary, has joined the board.
Confirming this significant development, OpenAI issued a statement on X, declaring, “We have reached an agreement in principle for Sam to resume his role as CEO at OpenAI, leading a new initial board featuring Bret Taylor as Chair, along with Larry Summers and Adam D’Angelo.” The company is presently in the process of finalizing the finer details of this agreement.
Expressing his enthusiasm for the return, Sam Altman conveyed his commitment to OpenAI’s mission. In a post on X, Altman articulated, “I hold a deep affection for OpenAI, and every action I’ve taken in recent days has been geared towards preserving the unity of this team and its mission. I eagerly anticipate rejoining OpenAI and further strengthening our robust partnership with Microsoft.” Sam Altman expressed his eagerness to return to OpenAI, emphasizing his dedication to the organization’s mission. In a post on X, Altman stated,
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. when i decided to join msft on sun evening, it was clear that was the best path for me and the team. with the new board and w satya’s support, i’m…
— Sam Altman (@sama) November 22, 2023
Following Altman’s announcement, Microsoft CEO Satya Nadella, who recently welcomed Altman into the company, endorsed the decision, citing it as a “first essential step” toward establishing a “more stable, well-informed, and effective governance” for OpenAI.
Altman’s reinstatement comes after he was dismissed by OpenAI’s board due to disagreements regarding the pace of artificial intelligence development and monetization. Negotiations for his return had faced challenges, including pressure for existing board members to resign. The board responded by appointing Emmett Shear, former CEO of Twitch, as the interim CEO and announced Microsoft’s plan to hire Altman for a new in-house AI team.
Following Sam Altman’s removal from his role on November 17, the board initially appointed Mira Murati, Chief Technology Officer at OpenAI, as the interim CEO. However, this interim role was later assumed by Emmett Shear, former CEO of Twitch, on November 19.
By November 20, Microsoft CEO Satya Nadella announced that Sam Altman, Greg Brockman, and their associates would be joining the ranks of the technology giant.
In response to Altman’s potential absence, over 65% of OpenAI’s workforce, comprising more than 500 employees, threatened to resign and join Altman at Microsoft. This triggered intensive discussions, leading to the eventual return of both Altman and Greg Brockman, President of OpenAI.
At an Accelerated Pace Compared to Steve Jobs
Altman’s rapid turnaround has been likened to Silicon Valley legend Steve Jobs, who left Apple in a power struggle in 1985 and returned 12 years later. Altman resumed the CEO position after just four days.
The upheaval at OpenAI, initiated by Altman’s departure, saw President Greg Brockman resign in protest. The board’s unexpected appointment of Emmett Shear as interim CEO added further twists to the unfolding events.
Emmett Shear, in a post on X, detailed the efforts undertaken to restore stability to OpenAI, ultimately leading to Altman’s return. He emphasized that the chosen pathway maximized safety and considered the interests of all stakeholders.
Altman’s successful return was facilitated in part by Microsoft, which offered him the opportunity to lead a new research team alongside Brockman and other departing colleagues. The majority of OpenAI’s staff, numbering over 700, threatened to join Microsoft unless the board resigned and Altman was reinstated, leveraging Microsoft’s computing power and resources crucial to OpenAI’s technology.
In celebrating the resolution, co-founder and President Brockman expressed optimism, stating, “We will come back stronger & more unified than ever.”
Ria Puneyani
The Chronology of a Hundred Crazy Hours
November 17
After Mr. Altman’s removal, the OpenAI board appointed Mira Murati as the interim CEO. Ms. Murati, aged 34, had served as the company’s Chief Technology Officer since May of the previous year. Emphasizing an ongoing “search process to identify a permanent successor,” the company addressed the leadership transition.
This entire episode unfolded following Sam Altman’s dismissal by the OpenAI board on Friday. Mr. Altman had gained prominence with the launch of ChatGPT the previous year, sparking significant advancements in AI research and development, accompanied by substantial investments in the sector. Reports suggested that his termination resulted from efforts to increasingly monetize the company’s leading GPT-4 model, all while maintaining the secrecy of its internal workings, a development deemed problematic by the board.
November 18
On the day following his dismissal, Mr. Altman reportedly informed investors about plans to launch a new venture in collaboration with Mr. Brockman. Earlier in September, Mr. Altman and Jony Ive, Apple’s former design chief, were said to be in discussions about a project in its developmental stages—an innovative AI hardware device.
November 19
On Sunday, the board extended the role of interim chief to Emmett Shear, the former CEO of Twitch. Mr. Shear, who had previously expressed concerns about AI being “dangerous” and susceptible to misuse, accepted the position. Upon learning of Mr. Altman’s return, Mr. Shear expressed his satisfaction with the outcome. Rumors of Mr. Altman’s sensational return began circulating on this day, with sources indicating investor pressure on the board to reverse its decision. Microsoft, as OpenAI’s largest shareholder, was reportedly approached for intervention on Mr. Altman’s behalf due to the significant investments made by Microsoft in OpenAI.
November 20
On Monday night, nearly all of OpenAI’s staff—over 700 out of around 770—threatened to resign and follow Mr. Altman to Microsoft. Citing concerns about working with individuals lacking “competence, judgment, and care for our mission,” they demanded the resignation of the board. Despite lucrative offers from Salesforce, most staff members displayed loyalty to OpenAI, refusing the offers. Additionally, Reuters reported that OpenAI had approached Dario Amodei, CEO of rival Anthropic, about potentially replacing Mr. Altman and exploring a merger between the two AI startups, an offer that was declined.
November 21
An internal memo reviewed by Bloomberg News revealed that OpenAI was engaged in “intense discussions” to reconcile its divided staff. The memo, dated the previous night and authored by Anna Makanju, Vice President of Global Affairs, mentioned ongoing communication with Mr. Altman regarding a possible return. Surprisingly, Mr. Nadella announced that Sam Altman and others would join Microsoft following their dismissal from OpenAI. He emphasized Microsoft’s approach to providing founders and innovators the space to build independent identities and cultures within the company.
November 22
Sam Altman has reclaimed the position of CEO at OpenAI a mere four days after being dismissed by the board, which had cited a “loss of confidence” in his leadership of the Microsoft-backed firm.
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.
We are collaborating to figure out the details. Thank you so much for your patience through this.
— OpenAI (@OpenAI) November 22, 2023
The Sensation Saga of Sam Altman
The 38-year-old Sam Altman had gained prominence with the launch of ChatGPT, sparking a significant race in AI research and development, accompanied by substantial investments in the sector.
Early Life and Affection for Mac
Born in Chicago in 1985, Altman spent his formative years in St. Louis, Missouri, attending the prestigious John Burroughs School. Excelling academically, he grew up in what he describes as a “middle-class Jewish family.” Altman’s introduction to programming occurred at the age of 8 when his parents, dermatologist Connie Gibstine and real estate broker Jerry Altman, gifted him a Macintosh LC II. This pivotal moment ignited Altman’s passion for programming, marking a defining point in his life.
Coming Out and Personal Life
Altman openly addressed his sexuality during high school, a challenging experience given the Midwest’s climate during the 2000s. At 17, he spoke about being gay during an assembly for National Coming Out Day after a Christian group boycotted a sexuality-related event. Altman’s courage challenged the school to embrace diversity. He currently resides with his partner, Australian programmer Oliver Mulherin, in San Francisco, and both aspire to start a family. Before Mulherin, Altman co-founded Loopt with Nick Sivo, a mobile social network that eventually sold for $43 million in 2012.
Stanford and Entrepreneurial Beginnings
Altman enrolled at Stanford University for computer science but, alongside two classmates, dropped out to focus on Loopt. The startup, part of Y Combinator‘s inaugural batch, achieved a valuation of $175 million but was later sold for $43 million in 2012. Post-Loopt, Altman co-founded the venture fund Hydrazine Capital with his brother, Jack Altman, raising $21 million. He joined Y Combinator as a part-time partner in 2011, becoming its president in 2014, succeeding co-founder Paul Graham. Altman’s tenure saw Y Combinator thrive, establishing itself as a force in the tech industry. His prominence grew, and he was featured on Forbes 30 Under 30 for venture capital at age 29.
OpenAI and Technological Breakthroughs
In 2015, Altman co-founded OpenAI with tech luminaries like Elon Musk. Under his leadership, OpenAI received a $1 billion investment from Microsoft in 2019, integrating its technology into various Microsoft products. OpenAI’s revolutionary moment came with the launch of ChatGPT in November 2022, a viral sensation that marked the beginning of “generative” AI in technology. Altman guided OpenAI to the forefront of the tech industry as a leading company in artificial intelligence.
What is ChatGPT?
Abira Dutta
FAQs
Who is the current CEO of OpenAI?
OpenAI has revealed an “agreement in principle” to reinstate Sam Altman as the CEO, with the departure of board members instrumental in his initial removal.
Why did the board fire Altman?
Sam Altman was fired as CEO of OpenAI due to a lack of transparency and candor in his communications with the board, leading to a loss of confidence in his ability to lead the company.
Is Microsoft the owner of OpenAI?
No, Microsoft is not the owner of OpenAI. However, it is a significant investor, having invested $13 billion in the company.
