Sam Altman, OpenAI fiasco: All you need to know in 10 points

The world of artificial intelligence was shaken on November 17, 2023, when OpenAI, a leading AI research company, abruptly fired its co-founder and CEO, Sam Altman.

OpenAI in its blog post stated that the board conducted a review process and determined that Altman was not consistently candid in his communications with them and this lack of transparency was seen as hindering the board’s ability to fulfill its responsibilities. As a result, the board has lost confidence in Altman’s ability to lead OpenAI effectively, leading to his departure from the organisation.

“Altman’s departure follows a deliberative review process by the board, which concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities,” OpenAI said in the blog without explaining much about the exact reason.

ALSO READ l ChatGPT maker OpenAI fires CEO Sam Altman for allegedly lying to company’s board

Mira Murati, the company’s chief technology officer, will serve as interim CEO, effective immediately while the company will conduct a formal search for permanent CEO.

The decision, shrouded in secrecy and fuelled by speculation, sent shockwaves through the tech industry, leaving many wondering what had transpired behind the closed doors of OpenAI’s headquarters. A lot has happened since then. Here’s the entire story encapsulated in 10 points for you.

1. After serving the company for nearly ten years, Altman’s reign at OpenAI came to an abrupt end when the company’s board accused him of lacking “candidness” in his communications. The exact nature of the alleged breaches remained unclear, but the board’s decision indicates a loss of confidence in Altman’s ability to steer OpenAI through the current complex and rapidly evolving arena of AI.
2. According to Reuters, the news of Altman being fired was informed to employees through internal announcement and the company’s public blog.
3. The ousting of Altman triggered a chain reaction within OpenAI. Greg Brockman, Altman’s close confidant and OpenAI’s co-founder, resigned in solidarity with Altman, leaving the company without its two top executives. “Based on today’s news, i quit,” he wrote on X.
4. Brockman revealed that Altman received a text from Ilya Sutskever, one of the co-founders of the company, requesting a discussion at noon on Friday. Sam joined a Google Meet where the entire board, excluding Greg, was present. During the meeting, Ilya informed Sam that they were terminated, and the news would be disseminated imminently.
5. At 12:19 pm, Greg received a text from Ilya, prompting a quick call. Subsequently, at 12:23 pm, Ilya sent a Google Meet link to Greg, informing him of his removal from the board. However, Greg was assured that he remained crucial to the company and would retain his role. Simultaneously, Sam’s termination was disclosed. OpenAI published a blog post around the same time.
6. The management team became aware of these developments shortly after, with the exception of Mira, who had learned of the situation the night before.
7. On the same day, OpenAI published a public blog informing that Altman had been fired due to not being “consistently candid in his communications with the board, hindering its ability to exercise its responsibilities.
8. “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,” Altman posted on X on November 18.
9. Microsoft, the largest investor and partner in OpenAI, also issued a statement hinting that Altman’s ousting will have no effect on the partnership. “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,” said Microsoft CEO Satya Nadella.
10. Brockman’s resignation was followed by company’s several heads including the company’s head of preparedness Aleksander Madfry, and director of research Jakub Pachoki announcing their respective resignations. The latest update on Altman’s sacking is that OpenAI’s board is now considering bringing back both Altman and Brockman. According to The Verge, board is in talks with Altman to reinstate him as CEO.

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