The OpenAI boardroom coup, which saw CEO Sam Altman fired as CEO, and co-founder Greg Brockman removed from the board, has been defeated. Sam Altman is now being reinstated as CEO.
The drama at the ChatGPT developer isn’t entirely over, however. The AI company is so far calling the deal an “agreement in principle” rather than a fact; there is to be an investigation into the whole saga; and the original corporate structure which led to the mess is to be retained …
A quick catch-up
Our previous piece summarises everything that happened prior to this new deal, but here’s a quick reprise:
OpenAI announced on Friday that four members of the company’s board had fired Altman and removed Brockman from the board. Only the vaguest of reasons were given, which was that Altman was allegedly “not consistently candid in his communications with the board.”
The tech world came out in support of Altman, and major OpenAI investors tried to get him reinstated. Negotiations were held between the board and senior execs, but these were not successful.
Microsoft offered jobs to Altman, Brockman, and anyone else from the OpenAI team who wanted to join them. Almost the entire staff then sent an open letter to the board stating that they would resign unless Altman was reinstated and the board fired.
OpenAI initially said that CTO Mira Murati would act as interim CEO, but within 48 hours said that Twitch co-founder Emmett Shear would replace her – also as an interim hire.
A second set of negotiations were then held.
OpenAI boardroom coup defeated
The WSJ reports that those new negotiations resulted in an agreement to reinstate Altman and disband the original board. A new board will be appointed, and only one of the original members will be on it.
OpenAI said Sam Altman will return as chief executive of the artificial-intelligence startup that he co-founded, ending a dramatic five-day standoff between him and the board that fired him.
OpenAI said the parties were “collaborating to figure out the details.” The company announced the formation of a new initial board that won’t include three of the four board members involved in removing Altman.
The new board will include Bret Taylor, the former co-CEO of Salesforce; Larry Summers, the former Treasury secretary; and Adam D’Angelo, the only member of OpenAI’s previous board to remain. Taylor will be the chairman, the company said. Altman won’t be on the initial board.
But with compromises
While Altman mostly got what he wanted – returning to his role as CEO, and all but one of the board members removed – some compromises were made.
First, neither Altman nor Brockman will be on the new board. Second, there will be an independent investigation into the (extremely vague) allegations made against Altman – as well as subsequent events. Third, the existing corporate structure will remain.
The corporate structure stays
The whole mess came about because OpenAI has a very unusual corporate structure. There is a non-profit wing, and a commercial wing. That in itself is not unique. But in Open AI’s case, the board of the non-profit actually controls the activities of the profit-making business.
That’s a very deliberate decision. The business side – led by Altman – naturally wants to push as far and as fast as possible. The board is there to serve as a brake and a safety check, ensuring that AI doesn’t get out of control.
While Altman felt that the board was holding back development, the structure is being retained – albeit with a mostly new set of board members in place.
Everyone is making nice
Despite the compromises, everyone is making nice – at least, in public.
Altman says he looks forward to his return.
Microsoft CEO Satya Nadella says that this is the right path.
Those who lost out are putting a brave face on it. Ousted board member Helen Toner said “now, we all get some sleep” while the world’s briefest CEO Emmett Shear said he was “glad to have been a part of the solution.”
What next?
The deal has yet to be finalized, but insiders say it is now just a question of paperwork.
Up to six additional board members will be appointed, and the composition of that board will of course significantly influence the future direction and pace of OpenAI’s work.
The investigation into Altman’s behavior may reveal something or nothing.
The corporate structure may or may not result in similar conflicts in future – though one hopes they will be addressed more calmly.
FTC: We use income earning auto affiliate links. More.
