Why ChatGPT-maker OpenAI fired Sam Altman

OpenAI, the artificial intelligence company, has announced a significant change in its leadership. Sam Altman, the CEO and co-founder of the company, has been asked to step down from his position with immediate effect.

Following an internal review process, the board of directors made the decision. They found that Altman was not always truthful in his communications, which negatively affected his ability to fulfill his responsibilities. Consequently, the board lost confidence in his ability to continue leading OpenAI.

The current Chief Technology Officer of the company, Mira Murati, will take on the role of interim CEO. People highly regard Murati for her unique skills and understanding of the company's values, operations, and business, which she gained through her responsibility for ChatGPT. Within the company, she spearheads the research, product, and security functions.

OpenAI’s mission is to ensure that artificial general intelligence (AGI) benefits all of humanity. The company believes that this change in leadership is necessary to continue pursuing this mission. This announcement comes shortly after Altman led his first DevDay developer conference, where he introduced GPT-4 Turbo and GPTs, and announced that ChatGPT has reached 100 million weekly users.

Why OpenAI fired Sam Altman

The official statement reveals that OpenAI fired Sam Altman due to loss of trust in him. He found he had not been truthful in his communications with the board of directors after they conducted a review process. The company does not specify particular incidents, but it provides some hints about its co-founder's exit.

OpenAI, the artificial intelligence company, was established with the primary goal of ensuring that artificial general intelligence (AGI) benefits all of humanity. To achieve this mission and become profitable, the company underwent a restructuring process, which included a significant investment from Microsoft in early 2023. However, this milestone was not sufficient to meet all of the company’s needs.

The board of directors emphasized that, despite the company’s impressive growth, their fundamental responsibility remains to uphold OpenAI’s mission and adhere to the principles outlined in its Charter.

Moving forward, OpenAI is focusing on research, product development, and security as the pillars of its strategy. Given the loss of trust in Sam Altman, they identify Mia Murati, the Chief Technology Officer, as the most suitable person to lead the company during this transition period.

The board of directors has expressed confidence in Murati’s qualifications for the position, even though her tenure as CEO will be temporary. A formal search for a permanent CEO will be conducted while Murati serves as the interim CEO.

In addition to Altman’s departure, OpenAI also confirmed that Greg Brockman will step down as chairman of the board. However, he will continue to hold a position within the company.

Money changed priorities

Sam Altman and Elon Musk initially established OpenAI as a nonprofit organization in 2015, with the aim of advancing technology for the benefit of humanity. However, Microsoft invested $1 billion in 2019, announcing an exclusive multi-year partnership and significantly transforming the organization.

In an effort to secure funding for the development of artificial general intelligence, OpenAI deviated from its original mission. Sam Altman, who had previously accelerated startups at Y Combinator, transitioned OpenAI into a for-profit entity. The partnership with Microsoft and the shift towards commercial products such as GPT-4, ChatGPT, and DALL-E altered the organization’s focus.

Elon Musk resigned from OpenAI’s board of directors in 2018 due to potential conflicts of interest with Tesla. Years later, Musk criticized Sam Altman and the company, accusing them of using Twitter data for financial gain. He stated, “OpenAI was started as an open source, non-profit project. Neither is still true.”

Recently, Sam Altman disclosed that he does not earn any income from OpenAI and does not hold an ownership stake in the company. He stated that his compensation covers his medical expenses and that he works at OpenAI out of passion.

Today, two entities make up OpenAI: OpenAI Incorporated and OpenAI LP. The founders established the original nonprofit organization, OpenAI Incorporated in 2015, while they created OpenAI LP, a limited profit subsidiary, in 2019 following Elon Musk’s departure. Microsoft followed this with a $10 billion investment and now owns 49% of OpenAI LP.

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