Inside OpenAI's Whirlwind: A 60-Hour Escapade

The artificial intelligence industry experienced significant changes over the weekend as Sam Altman, the leader of OpenAI, one of the most influential AI companies globally, was unexpectedly fired by the startup's board on Friday. However, within only 48 hours, Altman was hired to lead a new division at Microsoft. This new role will potentially grant him even more authority, as he will have access to the vast resources of one of the world's largest technology companies, along with the direct support of its CEO.

The future of OpenAI seems highly uncertain as the board appears to have lost the trust of its staff, and there is a significant risk of employees leaving en masse. This situation arose shortly after OpenAI's inaugural developer conference, during which it introduced various commercialized versions of its technology, such as the ability to personalize its ChatGPT AI chatbot.

If youre just catching up, heres what you missed from a weekend that could fundamentally change the AI development arms race:

Friday

Around 3 p.m. ET, Altman participated in a Google Meet call with the majority of OpenAI's board, which had been initiated by fellow co-founder and OpenAI chief scientist Ilya Sutskever. During the call, Altman received the news of his termination and was notified that the information would be publicly announced shortly.

Sam Altman, the CEO of OpenAI, delivered the keynote address at the inaugural Open AI DevDay conference held on November 06, 2023, in San Francisco, California.

Sam Altman has recently joined Microsoft, becoming the newest addition to their team. Coincidentally, this announcement comes shortly after OpenAI, the organization Altman previously co-founded, announced its third CEO in just three days. In addition, Greg Brockman, another co-founder and president of OpenAI, received news that he would no longer remain on the board.

At approximately 3:30 p.m. ET, OpenAI made a public announcement stating that Altman had been terminated from his position due to concerns about his lack of honesty with the board. The board further revealed that Mira Murati, the company's chief technology officer, would serve as the interim CEO.

OpenAI's strategic partners, including Microsoft, were reportedly notified about Altman's removal just moments before the official announcement was made by the board.

Following his termination announcement, Altmans took to X and expressed his admiration for the talented individuals he had the privilege of working with. He also hinted that he would provide further updates on his future endeavors.

Shortly after, Brockman resigned and attempted to alleviate any worries. In a post on X, he reassured everyone that there was no need for concern and teased the prospect of greater things to come in the near future.

A crucial element leading to the dismissal of the CEOs was the conflict between Altman, who advocated for a more aggressive approach in advancing AI, and certain members of the OpenAI board, who advocated for a more cautious approach, as stated by CNN contributor Kara Swisher, who gained insights from informed sources about the developing circumstances.

Saturday

In less than a day following his dismissal, rumors started circulating that Altman and former OpenAI supporters were contemplating starting their own business, while OpenAI's board was reconsidering and pondering the possibility of asking the ousted CEO to come back.

The AI industry saw a massive leadership shakeup after OpenAI Co-founder and CEO was pushed out on Friday. By Monday, Altman had been hired by Microsoft.

Joel Saget/AFP/Getty Images

Sunday

Altman returned to OpenAI's building on Sunday afternoon, this time accompanied by a guest badge, in order to engage in negotiations with the board regarding his potential reinstatement. Microsoft CEO Satya Nadella reportedly acted as a mediator during the discussion. A deadline of 5 p.m. PT was set for the board to reach an agreement on Altman's demands, which included the addition of a Microsoft representative to the board and his reinstatement as CEO.

However, the negotiations seemed to have reached an impasse.

During the transition from Sunday to Monday, Nadella announced on Twitter that Altman and Brockman would be appointed to lead a fresh AI research team at Microsoft. At OpenAI, Emmett Shear, the previous CEO of Amazon's streaming service Twitch, would assume the position of interim CEO. Murati would resume her duties as OpenAI's chief technology officer.

Monday

Describing it as "a once-in-a-lifetime" opportunity, Shear, who departed from his position at Twitch in March, revealed in a post on X early Monday that he would be joining OpenAI. Additionally, he announced the company's plan to recruit an independent investigator to provide a report on the events leading to Altmans termination.

Cofounder of Twitch Emmett Shear speaks in the David Rockwell designed TED Theater at TED2019 - Bigger Than Us on April 18, 2019 in Vancouver, Canada.

Lawrence Sumulong/Getty Images

Who is Emmett Shear, OpenAIs third CEO in three days?

However, OpenAI's employees remained unconvinced. On Monday morning, a significant number of employees signed an open letter urging the board to step down and restore Altman and Brockman to their positions. They also warned that they would join the co-founders at Microsoft if their demands were not met.

However, the anticipation of further developments lingers. According to The Verge's report on Monday, Altman and Brockman have the possibility of rejoining OpenAI should the board members responsible for their termination step down.

Regardless of the outcome, Altman made a concerted effort to provide reassurance to OpenAI's customers. In a separate post on X platform, he emphasized that his utmost focus, alongside Nadella, is to ensure the prosperous future of OpenAI.