Unravelling the OpenAI drama: Sam Altman ousted as CEO. The unexpected firing of Sam Altman as the Chief Executive of OpenAI has sent shockwaves through the tech world, triggering a compelling corporate saga in Silicon Valley.


OpenAI, based in San Francisco, is behind the highly praised ChatGPT, an artificial intelligence chatbot renowned for generating remarkably convincing text responses. It’s also recognised for creating Dall-E, a tool that crafts images based on text prompts.

Recent reports suggested that the company was in talks for a fundraising deal valuing it at an impressive $80 billion. That’s before the recent ‘cabinet shuffle’.

Musical Chairs

Sam Altman served as the CEO, and was synonymous with the success of ChatGPT. The AI chatbot accumulated 100 million users within two months of its launch in November 2022.

The company was originally founded as a non-profit organisation and operates as a commercial subsidiary overseen by a board. Altman served as its CEO.

The board’s decision to terminate Altman cited a lack of consistent honesty in his communications, which hindered his ability to fulfil his responsibilities. The details of the specific communications in question were not disclosed. Shortly following Altman’s termination, Emmett Shear, the co-founder of the Twitch streaming platform, accepted the position of interim CEO.

Reports surfaced that Altman had been discussing a new AI hardware device with Jony Ive, Apple’s former design chief. Additionally, Altman was reportedly seeking funding for a venture focused on developing chips for powerful AI systems.

OpenAI’s investors, led by Microsoft, attempted to reinstate Altman, with the backing of its staff and the interim CEO at the time, Mira Murati. Murati has since been replaced by Shear, making him OpenAI’s third CEO in three days.

Microsoft subsequently announced hiring Altman and his colleague Greg Brockman to lead a new advanced AI research unit.

Implications for OpenAI

Altman’s abrupt end has triggered uproar among the company’s 700 staff. Over 600 staff members, including Murati, voiced their opposition in an open letter, threatening to resign and join Microsoft unless Altman and Brockman were reinstated, and the board resigned.

Of course, this should be seen as a major concern for the future of OpenAI.

Microsoft is more than happy to accept disgruntled OpenAI talent, already putting Altman and Brockman to work. CEO Satya Nadella suggested that other OpenAI staff members had joined the duo already.

Microsoft’s stock hit an all-time high of $378 per share, signalling a market cap of $2.82 trillion. This unexpected success positions Microsoft as the clear winner, as it retains key personnel from OpenAI and secures its stake in the startup, while OpenAI faces uncertainties under interim CEO Emmett Shear.

Altman focused on building artificial general intelligence (AGI) and remains dedicated to making AGI safe and unlocking its benefits, ensuring that the momentum in advanced AI work continues, whether at OpenAI or under Microsoft’s umbrella.

The fallout from Altman’s firing has far-reaching implications for OpenAI, raising questions about its leadership, strategic direction, and the potential departure of key talent. The drama surrounding the attempted reinstatement, resignation threats, and Microsoft’s entry turn this into the latest Silicon Valley drama we can’t look away from.