In a year full of sensational tech stories, including Elon Musk's impact on Twitter, the collapse of cryptocurrency exchange FTX, and the implosion of Silicon Valley Bank, the recent upheaval at OpenAI is one of the most intriguing. Sam Altman, the influential leader of OpenAI, was unexpectedly fired by the company's directors on Friday, only to be reinstated as CEO less than five days later with a board supposedly more aligned with his vision.
Just days after OpenAI's inaugural developer conference, a series of remarkable events took place. The conference introduced new commercialized versions of OpenAI's technology, including the ability to customize the ChatGPT AI chatbot. If you need a recap, here's what happened during a truly extraordinary week that seemed like it could have been scripted by an early version of OpenAI's ChatGPT.
Friday
At approximately 3 p.m. ET, Altman participated in a Google Meet conference with the majority of OpenAI's board, which had been organized by fellow co-founder and OpenAI chief scientist Ilya Sutskever. It was during this call that Altman was terminated and informed that the announcement would be made public shortly.
Within the next 30 minutes, Greg Brockman, a co-founder and president of OpenAI, was notified by the board of his removal. At approximately 3:30 p.m. ET, OpenAI publicly announced the firing of Altman due to concerns regarding his honesty with the board. The board also stated that Mira Murati, the company's chief technology officer, would assume the role of interim CEO.
OpenAI's key partners, including its primary financial supporter Microsoft, were reportedly notified of Altman's removal just moments before the board's official announcement. Altman took to X to express his appreciation for working with such talented individuals and hinted at sharing more about his future plans.
Brockman resigned quickly and assured everyone not to worry. In a Friday post on X, he said, "Please don't spend any time being concerned. We will be fine. Greater things coming soon."
According to CNN contributor Kara Swisher, who spoke to sources familiar with the events, a major reason for the CEO's firing was the tension between Altman, who wanted to develop AI more aggressively, and the OpenAI board members, who preferred a more cautious approach.
Sam Altman, left, appears onstage with Microsoft CEO Satya Nadella at OpenAI's first developer conference, on Nov. 6, 2023, in San Francisco.
Barbara Ortutay/AP/FILE
Saturday
Within 24 hours of Altman's termination, reports surfaced indicating that he and other former OpenAI supporters were contemplating the formation of their own business venture. Furthermore, it was reported that OpenAI's board was reconsidering their decision and entertaining the idea of asking the ousted CEO to come back.
Sunday
Altman returned to OpenAI's headquarters on Sunday afternoon, this time with a guest badge, to negotiate his potential return. Microsoft CEO Satya Nadella reportedly mediated the discussion. A 5 p.m. PT deadline was set for the board to agree to Altman's demands, which included adding a seat for Microsoft and reinstating him as CEO.
The discussions came to an end, but on Sunday night, Nadella announced through a tweet that Altman and Brockman would be leading a new AI research group at Microsoft. In the meantime, Emmett Shear, former CEO of Twitch, took on the role of interim CEO at OpenAI. Murati resumed her position as OpenAI's chief technology officer.
Monday
Shear, who departed from his position at Twitch in March, shared in a post on X early Monday, that joining OpenAI was "a once-in-a-lifetime" opportunity. He also mentioned that the company would be bringing in an independent investigator to look into the events leading up to Altmans dismissal.
The OpenAI employees were not convinced, with over 500 of them signing an open letter urging the company's 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 requests were ignored. Altman expressed his excitement and unity in a post on X, stating, "we are more unified and focused than ever. We will work together in some capacity and I am thrilled. One team, one mission."
The drama was not yet resolved, with The Verge reporting that Altman and Brockman may have the opportunity to rejoin OpenAI if the board members who dismissed them step down. Nadella, speaking to CNBC, expressed openness to the possibility of Altman joining Microsoft.
"Decisions regarding the OpenAI board, management, and employees are up to them," stated Nadella. "We have deliberately collaborated with OpenAI and intend to maintain this partnership, contingent on the OpenAI team remaining with or joining Microsoft."
OpenAI CEO Sam Altman speaks during the OpenAI DevDay event on November 06, 2023 in San Francisco, California.
Justin Sullivan/Getty Images
Tuesday
Altman was reinstated late Tuesday as OpenAIs CEO, the company said on X.
An agreement in principle has been reached for Sam Altman to return to OpenAI as CEO, along with a new initial board. The board will be chaired by Bret Taylor, a former co-CEO of Salesforce, and will also include former Treasury Secretary Larry Summers and existing director Quora CEO Adam D'Angelo. Collaborative efforts are underway to finalize the details.
Altman announced on X (formerly Twitter) that he is excited to return to OpenAI and strengthen the firm's partnership with Microsoft. It is uncertain how Altmans return will impact Shear. Shear expressed satisfaction with the outcome on X, stating, "I am very pleased with this result after 72 intense hours of work... I'm glad to have been a part of the solution."
Brockman has announced his return to OpenAI in his post on X.
In the end, it seems that Microsoft and Altman are the major beneficiaries of the conflict: Altman will continue to lead the company he co-founded, while Microsoft has gained more influence over the company it has heavily invested in to support its AI development goals.
"We are encouraged by the changes to the OpenAI board," Nadella said on X. "We believe this is a first essential step on a path to more stable, well-informed, and effective governance."