{"id":86140,"date":"2023-11-18T18:43:11","date_gmt":"2023-11-18T23:43:11","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/sam-altman-is-fired-as-openai-ceo\/"},"modified":"2023-11-18T18:43:13","modified_gmt":"2023-11-18T23:43:13","slug":"sam-altman-is-fired-as-openai-ceo","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=86140","title":{"rendered":"Sam Altman Is Fired as OpenAI CEO"},"content":{"rendered":"
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OpenAI announced Friday afternoon that CEO Sam Altman has departed the company, saying the executive \u201cwas not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities.\u201d<\/p>\n

In a blog post disclosing Altman\u2019s ouster, the company added that \u201cthe board no longer has confidence in his ability to continue leading OpenAI.\u201d The company did not immediately provide details on how Altman may have misled its board.<\/p>\n

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Chief technology officer Mira Murati was appointed interim CEO.<\/p>\n

OpenAI President Greg Brockman said he had decided to leave the company, as well, apparently in response to Altman\u2019s firing by the board.<\/p>\n

In a post on X, formerly Twitter, Altman wrote: \u201cI loved my time at OpenAI. It was transformative for me personally, and hopefully the world a little bit. Most of all i loved working with such talented people. Will have more to say about what\u2019s next later.\u201d<\/p>\n

A few hours after the news about Altman\u2019s firing, Brockman announced<\/a> on X that he was leaving in response . \u201cI\u2019m super proud of what we\u2019ve all built together since starting in my apartment 8 years ago,\u201d Brockman wrote in a memo to OpenAI staff that he posted online. \u201cBut based on today\u2019s news I quit. Genuinely wishing you all nothing but the best.\u201d<\/p>\n

\n Microsoft,<\/span>
\n which is the largest investor in OpenAI, provided a statement on the news, but did not directly address the reasons for Altman\u2019s departure. <\/p>\n

\u201dWe have a long-term partnership with OpenAI and Microsoft remains committed to Mira and their team as we bring this next era of AI to our customers,\u201d a spokesperson for Microsoft said.<\/p>\n

Microsoft shares fell slightly after the Altman news became public around 3:30 p.m. Friday. The stock closed down 1.7%. <\/p>\n

\u201cThis is a shocker and Altman was a key ingredient in the recipe for success of OpenAI,\u201d says Dan Ives, who covers Microsoft and other tech firms for Wedbush Securities. \u201cThat said, we believe Microsoft and [its CEO Satya] Nadella will exert more control at OpenAI going forward with Altman gone.\u201d <\/p>\n

OpenAI had earlier in the day said that Brockman was stepping down as chairman of the company, but that he would remain in his current role as President. Brockman subsequently decided not to stay.<\/p>\n

OpenAI\u2019s board members include the company\u2019s chief scientist, Ilya Sutskever, along with three independent directors, Quora CEO Adam D\u2019Angelo; Helen Toner, Director of Strategy and Foundational Research Grants at the Georgetown Center for Security and Emerging Technology, and Tasha McCauley, a robotics engineer and entrepreneur. None of the directors responded to requests for comment.<\/p>\n

OpenAI noted in its blog post that Murati has been part of OpenAI\u2019s leadership team for five years. \u201cShe brings a unique skill set, understanding of the company\u2019s values, operations, and business, and already leads the company\u2019s research, product, and safety functions,\u201d the company said. <\/p>\n

\u201cGiven her long tenure and close engagement with all aspects of the company, including her experience in AI governance and policy, the board believes she is uniquely qualified for the role and anticipates a seamless transition while it conducts a formal search for a permanent CEO.\u201d<\/p>\n

OpenAI did not immediately respond to a request for further comment on the announcement.<\/p>\n

Altman co-founded OpenAI in 2015 with the incubator Y Combinator, Brockman, investor Peter Thiel,
\n Tesla
\n CEO Elon Musk, Y Combinator co-founder Jessica Livingston, and the IT services company
\n Infosys.<\/span>
\n Originally created as a non-profit, OpenAI transitioned to a for-profit business in 2019. Altman previously served in various roles at Y Combinator, including President and Chairman.<\/p>\n

Write to Eric J. Savitz at eric.savitz@barrons.com and Tae Kim at tae.kim@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n