OpenAI, the creator of ChatGPT, has come to an agreement for Sam Altman to resume his role as CEO shortly after his removal. This marks the conclusion of intense deliberations regarding the future of the startup, a pivotal player in the artificial intelligence boom.
As part of the resolution, the board of directors, which previously ousted Altman, will undergo a restructuring. Bret Taylor, former co-CEO of Salesforce, is appointed as the new chair, and Larry Summers, former US Treasury Secretary, joins the board.
Altman's dismissal on Friday was initially attributed to a lack of transparency and the board's commitment to uphold OpenAI's mission of developing AI for the benefit of humanity. The reinstatement of Altman signals a potential shift for the non-profit startup, which has grappled with balancing concerns about the dangers of AI and its potential for commercialization among its staff.
The reshuffling on Tuesday, November 21 appeared to be in favour of Altman and the major financial supporter, Microsoft, which is globally deploying OpenAI's technology to business customers. Microsoft CEO Satya Nadella expressed support for the changes, considering it a crucial step towards more stable and effective governance.
Adam D'Angelo, CEO of Quora, remains on the new "initial board." It remains uncertain whether the remaining directors without equity in OpenAI will retain their seats, or if investors, including Microsoft as a 49% owner, will gain their first appointments.
Reports suggest that some investors are exploring legal options following the events of the week, which had put OpenAI's future, previously anticipated to have an $80 billion valuation, in jeopardy.
Altman's swift return has been likened to Silicon Valley legends like Steve Jobs, who left and later returned to Apple after a power struggle in 1985. Altman resumed the CEO position after only four days, causing significant disruptions at OpenAI, including the resignation of President Greg Brockman.
Altman's comeback was facilitated in part by Microsoft, offering him a position to lead a new research team alongside departing colleagues from OpenAI. The majority of OpenAI's staff, leveraging Microsoft's substantial computing power, threatened to leave unless Altman was reinstated and the board stepped down.
By Tuesday night, a celebratory selfie with co-founder and President Brockman marked the resolution against the backdrop of the US Thanksgiving holiday deadline, expressing optimism for a stronger and more unified future.
Timeline of Sam Altman's firing and his dramatic return
November 17: OpenAI board fires CEO, co-founder Sam Altman and President Greg Brockman quits after being removed from the board. Company names Mira Murati as interim CEO
November 18: Altman's firing was over a "breakdown in communication between Sam and the board," and not "malfeasance", COO Brad Lightcap says in an internal memo
Early investor Khosla Ventures says it wants Altman back at OpenAI, "but will back him in whatever he does next"
Some employees contemplated quitting if Altman was not restored as CEO by the end of the weekend, while others expressed support for joining his new venture, people familiar with the matter said.
November 19: Altman discusses a possible return to the company, considers launching new AI startup, source tells Reuters
November 20: Microsoft CEO Satya Nadella says the Windows maker has hired Altman, Brockman and their colleagues to lead a new advanced AI research team
OpenAI appoints former Twitch boss Emmett Shear as interim CEO. Shear pledges probe into Altman's exit. OpenAI board approaches rival Anthropic's CEO on merger, for taking top job, sources say
Nearly all OpenAI staff threaten to quit and join Altman at Microsoft if board doesn't resign, according to a letter seen by Reuters
Some investors in OpenAI explore legal recourse against the company's board, sources familiar with the matter told Reuters
November 21: OpenAI said Altman will return as CEO with a new initial board of Bret Taylor, Larry Summers, and Adam D'Angelo. Brockman will also return to the startup.
