Jump to content

Removal of Sam Altman from OpenAI

From Wikipedia, the free encyclopedia
This is an old revision of this page, as edited by 0xReflektor (talk | contribs) at 21:59, 20 November 2023 (removed inaccurate statement about Sutskever). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.
Altman, pictured in 2019

On November 17, 2023, OpenAI's board of directors removed co-founder and chief executive Sam Altman after the board had no confidence in Altman's leadership. Altman is a noted figure in the technology sector and in the regulation of artificial intelligence.[1]

Background

OpenAI

Main article: OpenAI

OpenAI is an artificial intelligence firm founded in December 2015.[2] The for-profit division of the organization released the chatbot ChatGPT in November 2022,[3] contributing to a resurgence in generative artificial intelligence funding.[4] The non-profit's board of directors includes chief scientist Ilya Sutskever, Quora chief executive Adam D'Angelo, entrepreneur Tasha McCauley, and strategy director for the Center for Security and Emerging Technology at Georgetown University Helen Toner.[5] As of October 2023, the company is valued at US$80 billion[6] and was set to bring in US$1 billion in revenue.[7]

OpenAI is uniquely[8] structured. A board of directors controls the non-profit OpenAI, Inc. The non-profit owns and controls a for-profit company itself controlling a capped-profit company, OpenAI Global, LLC and a holding company owned by employees and other investors. The holding company is the majority owner of OpenAI Global, LLC.; Microsoft owns a minority stake in the capped-profit company.[9] OpenAI's bylaws, enacted in January 2016, allow a majority of its board of directors to remove any director without prior warning or a formal meeting with written consent.[10]

Sam Altman

Main article: Sam Altman

Sam Altman was the former chief executive officer of OpenAI; Altman took over the company following co-chair Elon Musk's resignation in 2018. Under Altman, OpenAI has shifted to becoming a for-profit entity.[2] Altman is credited with convincing Microsoft chief executive Satya Nadella with investing US$10 billion into OpenAI and leading several tender offer transactions that tripled the company's valuation.[11] Altman testified before the United States Congress speaking critically of artificial intelligence[12] and appeared at the 2023 AI Safety Summit.[13]

In the days leading up to his removal, Altman made several public appearances, announcing the GPT-4 Turbo platform at OpenAI's DevDay conference, attending APEC United States 2023,[3] and speaking at an event related to Burning Man.[14]

Events leading up to the removal

The resignation of LinkedIn co-founder Reid Hoffman, venture capitalist Shivon Zilis, and former Republican representative Will Hurd from the board allowed the remaining members to remove Altman.[10] According to Kara Swisher, Sutskever was instrumental in Altman's removal.[15] Disagreements over the safety of artificial intelligence divided employees prior to Altman's removal.[16] The release of ChatGPT created divisions with OpenAI as a for-profit company without considerations for the safety of artificial intelligence and a non-profit cautious of artificial intelligence's capabilities; in a staff email sent in 2019 and obtained by The Atlantic, Altman referred to these divisions as "tribes".[17]

Prior to his removal, Altman was seeking billions from Middle Eastern sovereign wealth funds to develop an artificial intelligence chip to compete with Nvidia and courted SoftBank chairman Masayoshi Son to develop artificial intelligence hardware with former Apple designer Jony Ive. Sutskever and his allies opposed these efforts, viewing them as using the OpenAI name. Altman reduced Sutskever's role in October 2023, furthering divisions; Sutskever successfully appealed to several members of the board.[18] Swisher and The Verge reporter Alex Heath stated that opposition to Altman's profit-driven strategy culminated in the DevDay conference[19] in which Altman announced custom ChatGPT instances.[20]

Removal

Avatar of Sam Altman
Avatar of Sam Altman
 Sam Altman
@sama

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.

November 17, 2023[21]

On November 17, 2023, at approximately noon,[22] OpenAI's board of directors ousted Altman effective immediately following a "deliberative review process". The board concluded that Altman was not "consistently candid in his communications".[1] Altman was informed of his removal five to ten minutes before it occurred[23] on a Google Meet.[24] Shortly after, Sutskever invited OpenAI chairman and president Greg Brockman to a Google Meet to inform him of Altman's removal.[22] According an internal memo obtained by Axios, the removal was not due to "malfeasance".[25]

Aftermath

OpenAI

Chief technology officer Mira Murati was appointed interim chief executive officer; a permanent replacement is underway. Hours after Altman's removal, Brockman resigned as chairman,[26] joined by director of research Jakub Pachocki and researchers Aleksander Madry and Szymon Sidor.[27] During an all-hands meeting, Sutskever defended the ouster and denied accusations of a hostile takeover.[8] An OpenAI representative requested former board member Will Hurd's presence.[28] The removal reportedly left OpenAI in "chaos", according to The New York Times.[29] According to Bloomberg News, a significant number of OpenAI engineers could resign if the board does not reconsider Altman's removal.[30]

Market effects

Shares in Microsoft fell nearly three percent following the announcement.[31] According to CoinDesk, the value of Worldcoin, an iris biometric cryptocurrency co-founded by Altman, decreased twelve percent.[2]

According to The Information, Altman's removal risks a share sale led by Thrive Capital valuing the company at US$86 billion.[32] Altman's removal could benefit OpenAI's competitors, such as Anthropic, Quora, Hugging Face, Meta Platforms, and Google.[33] The Economist wrote that the removal could slow down the artificial intelligence industry as a whole.[34] Google DeepMind received an increase in applicants, according to The Information.[35] Several investors considered writing down their OpenAI investments to zero, impacting the company's ability to raise capital.[30]

Responses to the removal

Microsoft executives were informed of Altman's removal a minute before the announcement was made, according to Axios,[36] and investors were not given advanced knowledge. Satya Nadella and chief technology officer Kevin Scott expressed confidence in OpenAI following his removal,[37] though Nadella was reportedly furious, according to Bloomberg News.[18]

Altman quipped that the OpenAI board of directors should sue him should he "start going off".[38] Former co-chair Elon Musk stated the board should be transparent in its removal.[39] Allies of Altman accused board members of staging a coup[8] and several OpenAI employees responded to a tweet Altman wrote with a heart emoji, intended to demonstrate employees who are prepared to leave.[40] Wired editor-at-large Steven Levy compared the removal of Altman to the removal of Steve Jobs from Apple in 1985.[41] Former Google chief executive Eric Schmidt wrote that Altman was a "hero to [him]" after his removal.[1] French digital transition minister Jean-Noël Barrot stated that Altman is "welcome in France".[42] Third Point chief executive and Microsoft shareholder Daniel S. Loeb stated that OpenAI had "stunningly poor governance".[43]

Potential venture

According to The Information, Altman is planning a new artificial intelligence venture with Brockman,[44] among other OpenAI employees.[45] Sequoia Capital investor Alfred Lin and venture capitalist Vinod Khosla expressed interest in Altman's potential venture,[46][47] as did Nadella, purportedly.[30]

Reinstatement efforts

Tiger Global Management and Sequoia Capital are attempting to reinstate Altman, according to The Information;[48] Bloomberg News reported that Microsoft and Thrive Capital are seeking for Altman's reinstatement.[49] On November 18, The Verge reported that OpenAI's board of directors discussed reinstating Altman. The board agreed in principle to resign and to allow Altman to return, but missed the deadline.[50] According to The Verge, Altman is ambivalent about returning and would seek significant changes to the company,[51] including replacing the board.[52] A list of directors is being prepared by investors in the event that the board steps down. The list purportedly includes former Salesforce executive Bret Taylor.[49] According to chief strategy officer Jason Kwon, OpenAI is optimistic it can return Altman, Brockman, and other employees.[53]

On November 19, Altman and Brockman appeared at OpenAI's headquarters to negotiate, mediated by Nadella. According to Bloomberg News, Murati, Kwon, and chief operating officer Brad Lightcap are pushing for a new board of directors; in order for Altman to be reinstated, the board must absolve him of wrongdoing. Taylor is expected be a member of the new board[54] and Microsoft is attempting to gain a seat.[55] The Wall Street Journal reported that Airbnb chief executive Brian Chesky and businesswoman Laurene Powell Jobs were also being considered.[56] Murati intended to rehire Altman and Brockman, discussing the move with Adam D'Angelo.[57] The board chose to name former Twitch chief executive Emmett Shear—who has ties to effective altruist movement[58]—as OpenAI's chief executive[59] and will not reinstate Altman.[56] Microsoft appointed Altman as the chief executive of an artificial intelligence research team,[60] joined by Brockman, Pachocki, Sidor, and Madry.[61]

Dozens of employees announced their resignations in response to Shear's accession.[62] A letter signed by over six hundred employees threatened mass resignations if the board does not resign.[63] On November 20, The Verge reported that Altman intends to return to OpenAI with support from Sutskever, who wrote an apologetic tweet for his participation in the board's actions.[64]

References

  1. ^ a b c De Vynck, Gerrit; Tiku, Nitasha (November 17, 2023). "OpenAI CEO Sam Altman ousted, shocking AI world". The Washington Post. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  2. ^ a b c Pahwa, Nitish (November 17, 2023). "Everything We Know About OpenAI's Shocking Ouster of Sam Altman". Slate. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  3. ^ a b Tarantola, Andrew (November 17, 2023). "OpenAI fires CEO Sam Altman as 'board no longer has confidence' in his leadership". Engadget. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  4. ^ Goswami, Rohan; Novet, Jordan (November 19, 2023). "OpenAI investors push to bring Altman back as CEO one day after he was ousted by board". NBC News. Archived from the original on November 19, 2023. Retrieved November 19, 2023.
  5. ^ Hayes, Dade; Tapp, Tom (November 17, 2023). "OpenAI CEO Sam Altman In Discussions To Return After His Shock Ouster". Deadline Hollywood. Archived from the original on November 17, 2023. Retrieved November 18, 2023.
  6. ^ Kleinman, Zoe (November 18, 2023). "Sam Altman: The extraordinary firing of an AI superstar". BBC News. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  7. ^ Zahn, Max (November 17, 2023). "Sam Altman steps down from role as CEO of OpenAI". ABC News. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  8. ^ a b c Roose, Kevin (November 18, 2023). "Many Details of Sam Altman's Ouster Are Murky. But Some Things Are Clear". The New York Times. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  9. ^ "How OpenAI is structured". Axios. November 18, 2023. Archived from the original on November 19, 2023. Retrieved November 18, 2023.
  10. ^ a b Dave, Paresh (November 19, 2023). "How OpenAI's Bizarre Structure Gave 4 People the Power to Fire Sam Altman". Wired. Retrieved November 18, 2023.
  11. ^ Bensinger, Greg (November 17, 2023). "In ousting CEO Sam Altman, ChatGPT loses its best fundraiser". Reuters. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  12. ^ Murphy Kelly, Samantha (November 17, 2023). "ChatGPT parent company OpenAI fires CEO Sam Altman". CNN. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  13. ^ Kleinman, Zoe (November 18, 2023). "AI boss Sam Altman ousted after board loses confidence". BBC News. Archived from the original on November 17, 2023. Retrieved November 18, 2023.
  14. ^ Dastin, Jeffrey; Tong, Anna; A, Samrhitha; Hu, Krystal (November 17, 2023). "ChatGPT maker OpenAI ousts CEO Sam Altman". Reuters. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  15. ^ Heath, Alex (November 18, 2023). "What happened to Sam Altman?". The Verge. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  16. ^ Victor, Jon; Palazollo, Stephanie; Gardizy, Anissa. "Before OpenAI Ousted Altman, Employees Disagreed Over AI 'Safety'". The Information. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  17. ^ Hao, Karen; Warzel, Charlie (November 19, 2023). "Inside the Chaos at OpenAI". The Atlantic. Retrieved November 19, 2023.
  18. ^ a b Miller, Hannah; Stone, Brad; Ghaffary, Shirin; Vance, Ashlee (November 17, 2023). "Silicon Valley Boardroom Coup Leads to Ouster of an AI Champion". Bloomberg News. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  19. ^ Danner, Chas (November 18, 2023). "Why Was Sam Altman Fired As CEO of OpenAI?". Intelligencer. Archived from the original on November 17, 2023. Retrieved November 18, 2023.
  20. ^ Fung, Brian (November 18, 2023). "OpenAI drama continues: Sam Altman may be mulling a return to the company". CNN. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  21. ^ Peters, Jay; Heath, Alex (November 17, 2023). "Sam Altman fired as CEO of OpenAI". The Verge. Archived from the original on November 17, 2023. Retrieved November 18, 2023.
  22. ^ a b Moon, Mariella (November 18, 2023). "Sam Altman was 'shocked and saddened' after he was fired as CEO of OpenAI". Engadget. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  23. ^ Tarantola, Andrew (November 18, 2023). "OpenAI reportedly considering reinstating just-ousted CEO Sam Altman". Engadget. Archived from the original on November 19, 2023. Retrieved November 19, 2023.
  24. ^ Duffy, Kate (November 19, 2023). "Sam Altman's Friends and Foes: Who's Who in OpenAI Drama". Bloomberg News. Archived from the original on November 18, 2023. Retrieved November 19, 2023.
  25. ^ Fried, Ina; Rosenberg, Scott (November 18, 2023). "No "malfeasance" behind Sam Altman's firing, OpenAI memo says". Axios. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  26. ^ Peters, Jay (November 17, 2023). "OpenAI co-founder Greg Brockman is leaving, too". The Verge. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  27. ^ Victor, Jon; Efrati, Amir (November 17, 2023). "Three Senior OpenAI Researchers Resign as Crisis Deepens". The Information. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  28. ^ Isaac, Mike; Metz, Cade; Mickle, Tripp (November 19, 2023). "Talks to Bring Sam Altman Back to OpenAI Stretch Through Weekend". The New York Times. Retrieved November 19, 2023.
  29. ^ Metz, Cade (November 18, 2023). "The Fear and Tension That Led to Sam Altman's Ouster at OpenAI". The New York Times. Retrieved November 19, 2023.
  30. ^ a b c Chafkin, Max; Metz, Rachel (November 19, 2023). "The Doomed Mission Behind Sam Altman's Shock Ouster From OpenAI". Bloomberg News. Retrieved November 18, 2023.
  31. ^ Metz, Rachel (November 17, 2023). "OpenAI Ousts Altman as CEO, Board Says It Lost Confidence In Him". Bloomberg News. Archived from the original on November 20, 2023. Retrieved November 18, 2023.
  32. ^ "OpenAI's $86 billion share sale in jeopardy after Altman firing, The Information reports". Reuters. November 18, 2023. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  33. ^ Nover, Scott (November 18, 2023). "How chaos at OpenAI reshapes AI's competitive landscape". Fast Company. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  34. ^ "What Sam Altman's surprise sacking means for the AI race". The Economist. November 18, 2023. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  35. ^ Palazollo, Stephanie; Mascarenhas, Natasha; Victor, Jon; Clark, Kate (November 19, 2023). "OpenAI's Rivals Rush to Poach Staff After Altman Ouster". The Information. Archived from the original on November 19, 2023. Retrieved November 19, 2023.
  36. ^ Fried, Ina (November 17, 2023). "Microsoft is a key investor in OpenAI. It was blindsided by Sam Altman's exit". Axios. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  37. ^ Woo, Erin; Gardizy, Anissa; Holmes, Aaron (November 17, 2023). "Interim OpenAI CEO: Microsoft Has 'Utmost Confidence' in Startup Following Altman Departure". The Information. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  38. ^ Knight, Will (November 18, 2023). "Sam Altman's Sudden Exit Sends Shockwaves Through OpenAI and Beyond". Wired. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  39. ^ Mollman, Steve (November 19, 2023). "Sam Altman returned to OpenAI HQ and could be reinstated as CEO soon. Elon Musk says 'the public should be informed' why he was fired in the first place". Fortune. Archived from the original on November 19, 2023. Retrieved November 19, 2023.
  40. ^ Heath, Alex (November 19, 2023). "Why OpenAI employees were posting all those heart emojis". The Verge. Archived from the original on November 19, 2023. Retrieved November 19, 2023.
  41. ^ Levy, Steven (November 18, 2023). "What Sam Altman's Firing Means for the Future of OpenAI". Wired. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  42. ^ Hayden, Jones (November 18, 2023). "Ousted OpenAI CEO Altman welcome in France, digital minister says". Politico. Archived from the original on November 19, 2023. Retrieved November 18, 2023.
  43. ^ Heeter, Maria (November 19, 2023). "Microsoft Shareholder Third Point Says OpenAI's Board Had 'Stunningly Poor Governance'". The Information. Retrieved November 19, 2023.
  44. ^ Clark, Kate; Weinberg, Cory. "OpenAI Co-Founder Altman Plans New AI Venture". The Information. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  45. ^ Tong, Anna; Dastin, Jeffrey; Hu, Krystal (November 18, 2023). "Ousted OpenAI CEO Altman discusses possible return, mulls new AI venture-source". Reuters. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  46. ^ Hammond, George (November 18, 2023). "OpenAI investors push to reinstate Sam Altman as CEO". Financial Times. Archived from the original on November 19, 2023. Retrieved November 18, 2023.
  47. ^ Isaac, Mike; Metz, Cade; Griffith, Erin; Mickle, Tripp (November 18, 2023). "Ousted OpenAI C.E.O. Makes Plans for New Artificial Intelligence Company". The New York Times. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  48. ^ Clark, Kate; Mascarenhas, Natasha (November 18, 2023). "If Sam Altman Returns to OpenAI, Board Will Go". The Information. Archived from the original on November 19, 2023. Retrieved November 18, 2023.
  49. ^ a b Chang, Emily; Vance, Ashlee; Ludlow, Edward; Bass, Dina (November 18, 2023). "OpenAI Board Pressed by Microsoft, Investors to Restore Altman". Bloomberg News. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  50. ^ Heath, Alex; Patel, Nilay (November 18, 2023). "OpenAI board in discussions with Sam Altman to return as CEO". The Verge. Archived from the original on November 18, 2023. Retrieved November 18, 2023.
  51. ^ Edwards, Benj (November 18, 2023). "OpenAI board attempts to hit "Ctrl-Z" in talks with Altman to return as CEO". Ars Technica. Archived from the original on November 19, 2023. Retrieved November 18, 2023.
  52. ^ Hagey, Keach; Jin, Berber; Seetharaman, Deepa (November 19, 2023). "OpenAI Investors Trying to Get Sam Altman Back as CEO After Sudden Firing". The Wall Street Journal. Archived from the original on November 18, 2023. Retrieved November 19, 2023.
  53. ^ Wei Wong, Yi (November 18, 2023). "OpenAI 'Optimistic' on Return of Altman, Brockman: Information". Bloomberg News. Archived from the original on November 19, 2023. Retrieved November 19, 2023.
  54. ^ Chang, Emily; Ludlow, Edward; Metz, Richard; Bass, Dina (November 19, 2023). "OpenAI Negotiations to Reinstate Altman Hit Snag Over Board Role". Bloomberg News. Archived from the original on November 19, 2023. Retrieved November 19, 2023.
  55. ^ Holmes, Aaron; Clark, Kate (November 19, 2023). "Microsoft Eyes Seat on OpenAI's Revamped Board". The Information. Archived from the original on November 20, 2023. Retrieved November 19, 2023.
  56. ^ a b Jin, Berber; Seetharaman, Deepa; Dotan, Tom; Hagey, Keach (November 19, 2023). "OpenAI Leadership Hangs in Balance as Sam Altman's Counter-Rebellion Gains Steam". The Wall Street Journal. Retrieved November 19, 2023.
  57. ^ Vance, Ashlee; Bass, Dina; Ludlow, Edward; Chang, Emily (November 19, 2023). "OpenAI's Murati Aims to Re-Hire Altman, Brockman After Exits". Bloomberg News. Retrieved November 19, 2023.
  58. ^ Vance, Ashlee; Emily, Chang; Ludlow, Edward (November 19, 2023). "OpenAI Board Taps Former Twitch CEO Shear to Succeed Altman". Bloomberg News. Retrieved November 19, 2023.
  59. ^ Patel, Nilay; Heath, Alex (November 19, 2023). "The deal to bring Sam Altman back to OpenAI has fallen apart". The Verge. Retrieved November 19, 2023.
  60. ^ Warren, Tom (November 20, 2023). "Microsoft hires former OpenAI CEO Sam Altman". The Verge. Retrieved November 20, 2023.
  61. ^ Metz, Cade; Mickle, Tripp; Isaac, Mike (November 20, 2023). "Threat of OpenAI Staff Exodus Leaves Its Future Uncertain". The New York Times. Retrieved November 20, 2023.
  62. ^ Efrati, Amir (November 19, 2023). "Dozens of Staffers Quit OpenAI After Sutskever Says Altman Won't Return". The Information. Retrieved November 19, 2023.
  63. ^ Kastrenakes, Jacob; Warren, Tom (November 20, 2023). "Hundreds of OpenAI employees threaten to resign and join Microsoft". The Verge. Retrieved November 20, 2023.
  64. ^ Heath, Alex; Patel, Nilay (November 20, 2023). "Sam Altman is still trying to return as OpenAI CEO". The Verge. Retrieved November 20, 2023.

Further reading

Retrieved from "https://en.wikipedia.org/w/index.php?title=Removal_of_Sam_Altman_from_OpenAI&oldid=1186093168"