Why Was OpenAI CEO Sam Altman Fired: Speculation On AGI, New Ventures

“The Senior Manager, Strategic Sourcing is a key player in OpenAI’s Finance division, responsible for elevating our non-technology procurement function.”

Screenshot from OpenAI, November 2023

SPECULATION:

They achieved AGI, which scared Ilya, leading to his ‘Oppenheimer moment.’

The day before his fire, @sama said they made a massive discovery in the last 2 weeks: pic.twitter.com/Va2cX9agBu

— Rowan Cheung (@rowancheung) November 18, 2023

“It’s a good idea to keep enough control so that investors can’t fire you (there are a lot of different ways to do this), but beyond that, it’s important to bring in other people and trust them to help you build the company.”

Sam wrote this essay on board members back in 2014 pic.twitter.com/LVo0cjOl7x

— Peter Yang (@petergyang) November 18, 2023

Big scoop from @kevinroose:

“We can say definitively that the board’s decision was not made in response to malfeasance or anything related to our financial, business, safety or security/privacy practices,” [an openAI exec] wrote. “This was a breakdown in communication between… https://t.co/nekDIY2odh

— Gary Marcus (@GaryMarcus) November 18, 2023

Sources close to the NY Times shared that Sutskever countered views of it being a “hostile takeover” and emphasized its necessity for the the goal advancing AI for humanity’s benefit.

More information about OpenAI board members involved in yesterday’s shocking decision:

• Ilya Sutskever, OpenAI’s chief scientist.
• Adam D’Angelo, CEO of Quora and Poe.
• Tasha McCauley, a technology entrepreneur.
• Helen Toner, from Center for Security and Emerging Technology (CSET).

Bloomberg reports that Altman was dismissed from his position as CEO due to a series of disagreements with board members over fundamental aspects of AI development and commercialization.

Key points of conflict included the pace of generative AI development, strategies for commercializing products, and measures to mitigate potential public harm.

Altman’s clashes, particularly with board member and OpenAI co-founder Ilya Sutskever, culminated in the board losing confidence in his leadership.

Ego is the enemy of growth

— Ilya Sutskever (@ilyasut) September 29, 2023

Additionally, Altman’s independent entrepreneurial ventures, such as seeking investments for an AI chip startup and concerns about diverging governance models, further strained his relationship with the board.

Micosoft’s CEO was not only “blindsided” by the news, but also furious according to Bloomberg’s sources close to the situation.

A look at OpenAI’s structure reveals:

• OpenAI’s for-profit subsidiary is fully governed by the OpenAI Nonprofit through its ownership and control of OpenAI GP LLC.
• The board, part of a Nonprofit, must prioritize safe, beneficial AGI development, with humanity as its main beneficiary, not OpenAI investors.
• The board is predominantly independent, with no direct equity held by members, including CEO Sam Altman, whose stake is through Y Combinator.
• Profits for investors and employees, including Microsoft, are capped, with excess value benefiting humanity through the Nonprofit.
• The board decides if it has attained AGI – an autonomous system that surpasses human capabilities in work most valuable to society. AGI technology is not included in commercial deals with Microsoft.

if i start going off, the openai board should go after me for the full value of my shares

— Sam Altman (@sama) November 18, 2023

Screenshot from OpenAI, November 2023

According to sources for The Information, three additional people at OpenAI have resigned in the wake of Altman and Brockman’s exit:

• Jakub Pachocki, Director of Research at OpenAI, “gpt-4 lead.”
• Aleksander Madry, Head of Preparedness, “Working on making AI more reliable and safe, as well as having a positive impact on society.”
• Szymon Sidor, Research Scientist at OpenAI, “Building AGI one line of code at the time.”

i love you all.

today was a weird experience in many ways. but one unexpected one is that it has been sorta like reading your own eulogy while you’re still alive. the outpouring of love is awesome.

one takeaway: go tell your friends how great you think they are.

— Sam Altman (@sama) November 18, 2023

The sequence of events began with Sam receiving a text from Ilya, leading to a Google Meet where he was informed of his termination, with the board present except for Greg.

Shortly after, Greg was similarly contacted by Ilya and removed from the board, though his role in the company was affirmed.

The management team, except for Mira who was informed earlier, learned of these developments soon after.

Sam and I are shocked and saddened by what the board did today.

Let us first say thank you to all the incredible people who we have worked with at OpenAI, our customers, our investors, and all of those who have been reaching out.

We too are still trying to figure out exactly…

— Greg Brockman (@gdb) November 18, 2023

I’ve spoken to Sam and Greg and they will have a statement shortly

— Brian Chesky (@bchesky) November 18, 2023

For those wondering what’ll happen next, the answer is we’ll keep shipping. @sama & @gdb weren’t micro-managers. The ✨ comes from the many geniuses here in research product eng & design. There’s clear internal uniformity among these leaders that we’re here for the bigger mission

— Evan Morikawa (@E0M) November 18, 2023

it’s been sad for me to see @sama and @gdb go. I love and respect them much.

Despite all of these the mission of the OpenAI is bigger than any of us and stays the same – build safe AGI to benefit humanity. ❤️

— Wojciech Zaremba (@woj_zaremba) November 18, 2023

In the craziness of ChatGPT forming, @miramurati was the one making final decisions in daily standups. She’s been leading this company for years and will continue to do an amazing job here.

— Evan Morikawa (@E0M) November 18, 2023

Scoop: There are about to be a lot more major departures of top folks at @OpenAI tonight and I assume Altman will make a statement tonight. But, as I understand it, it was a “misalignment” of the profit versus nonprofit adherents at the company. The developer day was an issue. https://t.co/eIE4zctv4X

— Kara Swisher (@karaswisher) November 18, 2023

Sending love to everyone at OpenAI. Whatever happens next, many of us are wishing the best for all of you and for the amazing company you’ve built. ❤️

— Andrew Ng (@AndrewYNg) November 18, 2023

❤️ out to employees who have to navigate through ambiguity and uncertainty that distracts from your mission.

regardless of what happens, lean on each other to get through.

i’ve lived it and seen the ebbs and flows. kindness is contagious ❤️❤️❤️

— Jack Krawczyk (@JackK) November 18, 2023

Also included in original announcement from OpenAI: “As a part of this transition, Greg Brockman will be stepping down as chairman of the board and will remain in his role at the company, reporting to the CEO.”

The (former) President & Co-Founder of OpenAI responded:

After learning today’s news, this is the message I sent to the OpenAI team: https://t.co/NMnG16yFmm pic.twitter.com/8x39P0ejOM

— Greg Brockman (@gdb) November 18, 2023

Sam Altman is a hero of mine. He built a company from nothing to $90 Billion in value, and changed our collective world forever. I can’t wait to see what he does next. I, and billions of people, will benefit from his future work- it’s going to be simply incredible. Thank you…

— Eric Schmidt (@ericschmidt) November 17, 2023

“We have a long-term agreement with OpenAI with full access to everything we need to deliver on our innovation agenda and an exciting product roadmap; and remain committed to our partnership, and to Mira and the team. Together, we will continue to deliver the meaningful benefits of this technology to the world.”

As you saw at Microsoft Ignite this week, we’re continuing to rapidly innovate for this era of AI, with over 100 announcements across the full tech stack – from AI systems, models, and tools in Azure, to Copilot. Most importantly, we’re committed to delivering all of this to our…

— Satya Nadella (@satyanadella) November 17, 2023

Sam Altman is one of the best founders of his generation and has made an immense contribution to our industry

— Brian Chesky (@bchesky) November 17, 2023

i loved my time at openai. it was transformative for me personally, and hopefully the world a little bit. most of all i loved working with such talented people.

will have more to say about what’s next later.

🫡

— Sam Altman (@sama) November 17, 2023

In case you were wondering how much Sam Altman mattered to Microsoft. I’m gonna go with A LOT. pic.twitter.com/Vs7WvQWq8Y

— Alex Kantrowitz (@Kantrowitz) November 17, 2023

Microsoft’s CEO recently appeared on stage with Altman to announce an extended partnership.

The timing appears to be shortly after the OpenAI announcement.

The decision for Altman’s departure follows the board’s deliberation over his communication approach, which they found lacked the necessary candor for effective governance.

In the official statement, the board expressed gratitude for Altman’s contributions to OpenAI’s founding and growth but emphasized the need for new leadership to navigate the company’s future. They expressed full confidence in Murati’s capabilities to lead the company during this transitional phase.

The board, comprising independent directors such as Quora CEO Adam D’Angelo, entrepreneur Tasha McCauley, and Helen Toner of the Georgetown Center for Security and Emerging Technology, along with OpenAI chief scientist Ilya Sutskever, plays a crucial role in maintaining the company’s direction and mission integrity. Additionally, Greg Brockman, the chairman of the board, will be stepping down from his role but will continue his association with the company.

Stepping into the role of interim CEO is Mira Murati, the company’s Chief Technology Officer, known for her integral role in OpenAI’s growth and her deep understanding of the company’s operations and values.

Murati, a member of the OpenAI leadership team for five years, has been pivotal in shaping the company’s direction. Her expertise in AI governance and policy, coupled with her leadership in the company’s research, product, and safety functions, makes her an ideal candidate for the interim CEO position. The board anticipates a smooth transition as it embarks on a search for a permanent CEO.