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Sam Altman back in control at OpenAI after independent probe

A months-long boardroom drama at OpenAI ends with co-founder Sam Altman reclaiming the CEO role after an independent inquiry cleared him of wrongdoing.

By
Shubham Sawarkar
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ByShubham Sawarkar
Editor-in-Chief
Shubham Sawarkar is a technology journalist at GadgetBond, covering Apple, AI, consumer technology, software, gadgets, and product launches. His work explores emerging technologies, industry developments, product...
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Mar 10, 2024, 6:36 AM EDT
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Sam Altman back in control at OpenAI after independent probe
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After being briefly ousted in a boardroom coup last fall, Sam Altman has regained his position as CEO of OpenAI, the research company that developed ChatGPT. An independent investigation, commissioned by OpenAI’s nonprofit board, concluded that Altman’s conduct did not warrant removal, thus paving the way for his reinstatement and a change in the organization’s leadership.

The months-long saga, which employees internally referred to as “The Blip,” had raised questions about the governance and direction of one of the world’s most prominent AI labs. In November, Altman was abruptly fired by the board in what was widely seen as a power struggle over the company’s future and concerns about the potential conflicts of interest.

However, the investigation by the law firm WilmerHale, which interviewed board members and employees and reviewed over 30,000 documents, concluded that Altman and co-founder Greg Brockman “are the right leaders for OpenAI.” The firm’s report stated that the previous board’s decision to fire Altman did not stem from concerns about product safety, the pace of AI development, finances, or any misrepresentations to investors or partners.

In a press release on Friday, OpenAI board chair Bret Taylor said the turmoil was “a consequence of a breakdown in the relationship and loss of trust between the prior Board and Mr. Altman.” WilmerHale also found that Altman’s firing was conducted “without advance notice to key stakeholders, and without a full inquiry or an opportunity for Mr. Altman to address the prior Board’s concerns.”

Addressing reporters in a video call, a contrite Altman apologized for believing that “a former OpenAI board member was harming OpenAI through their actions,” an apparent reference to longstanding tensions with Helen Toner, whose academic paper was critical of the company’s approach to AI safety.

The drama had threatened to derail OpenAI at a critical juncture, as the startup raced to commercialize powerful AI systems like ChatGPT, which has captured global attention and sparked a new arms race among tech giants. At the height of the crisis in November, the majority of OpenAI’s roughly 200 employees had threatened to resign if Altman, a revered figure within the company, did not return as chief executive.

While Altman’s reinstatement settles the leadership question, at least for now, the episode exposed deeper rifts within the AI community over the ethical development of superintelligent systems. OpenAI, a nonprofit co-founded by Altman, has positioned itself as a leader in developing safe and robust AI assistants, even as critics accused it of recklessly rushing powerful technology to market.

In an effort to restore trust, OpenAI announced a series of governance reforms on Friday, including strengthening its conflict of interest policy for employees and creating a whistleblower hotline. The company also unveiled a revamped board stocked with experienced directors, including Sue Desmond-Hellmann, the former CEO of the Bill and Melinda Gates Foundation, and Nicole Seligman, a former legal executive at Sony.

Rejoining Taylor, Altman, and existing directors Adam D’Angelo and Larry Summers, the new board members will be tasked with steering OpenAI through uncharted technological waters. During the call, Altman expressed optimism that recent “leaks” aimed at driving a wedge between OpenAI’s leaders had failed, adding that he hoped to continue working closely with the company’s chief scientist, Ilya Sutskever, who had initially supported the board’s attempt to oust Altman.


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