Multiple Investors in OpenAI Engage Microsoft, the Company’s Main Shareholder, to Restore Altman as CEO

By 0xGorki 11/19/23 2:12 PM

OpenAI, the AI powerhouse renowned for its innovations like ChatGPT, is embroiled in controversy following the unexpected termination of its CEO, Sam Altman, sparking a flurry of discontent among investors and insiders.

Recent reports from Bloomberg suggest that several investors, disapproving of the board’s decision to remove Altman, are actively engaging with OpenAI’s major shareholder, Microsoft, in a bid to reinstate him as the CEO. Altman’s sudden dismissal, announced on November 17, saw Mira Murati, the Chief Technology Officer, stepping into the vacant CEO position.

The board’s decision, communicated via a blog post, cited concerns about Altman’s communication style, alleging a lack of clarity and transparency that hindered a comprehensive understanding of company operations.

The dynamics have escalated further with anticipated actions from Thrive Capital, expected to initiate a tender offer for employee shares. However, reports indicate that the funds haven’t been forwarded yet, and Altman’s exit might significantly impact the trajectory of this initiative.

Thrive Capital’s involvement extends to advocating for the reinstatement of both Altman and Greg Brockman, OpenAI’s departing president, who left shortly after Altman’s removal. In a tweet, Brockman expressed shock and sadness over the board’s actions, detailing the sequence of events leading to Altman’s dismissal.

Sam and I are shocked and saddened by what the board did today.

Let us first say thank you to all the incredible people who we have worked with at OpenAI, our customers, our investors, and all of those who have been reaching out.

We too are still trying to figure out exactly…

— Greg Brockman (@gdb) November 18, 2023

Moreover, Microsoft CEO Satya Nadella purportedly signaled his support for any decision Altman takes, emphasizing the unexpected nature of the board’s move.

Since his abrupt departure, recent reports speculate that Altman is actively involved in developing a new AI venture, as indicated by sources familiar with the matter. Notably, these reports also suggest that Brockman might join Altman in this new endeavor.

The fallout from Altman’s removal has prompted a wave of speculation, internal upheaval, and investor unrest within OpenAI, a company renowned for pushing the boundaries of artificial intelligence. The unfolding developments amid this leadership shakeup are poised to redefine the trajectory of both OpenAI and the broader AI industry landscape.

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