- OpenAI renews its board of directors with Bret Taylor as new chairman
- Co-founder Brockman and other employees are also returning
- Questions still remain surrounding Altman’s ouster
SAN FRANCISCO, Nov 22 (Portal) – Sam Altman returns as CEO of OpenAI just days after his ouster, ending hectic discussions about the future of the startup at the center of an artificial intelligence boom.
The ChatGPT maker also unveiled a new initial board of directors with former Salesforce co-CEO Bret Taylor as chairman and Larry Summers, the former U.S. Treasury secretary, and Adam D’Angelo as directors. D’Angelo was on the original board that fired Altman.
Altman’s return could potentially usher in a new era for the startup, where employees have long had concerns about the dangers of AI and its commercialization potential.
“I’m excited to return to OpenAI,” Altman said in a post on the social media platform X late Tuesday.
The original board had offered little explanation for Altman’s firing on Friday, other than his lack of openness and the need to defend OpenAI’s mission to develop AI that benefits humanity.
Analysts said the restructuring will favor Altman and Microsoft (MSFT.O), which has committed billions of dollars to the startup and makes its technology available to customers worldwide.
“There are still big questions about why Altman was fired and why Microsoft was kept in the dark about the decision,” said Danni Hewson, head of financial analysis at AJ Bell.
“It seems clear that Microsoft will now play a much larger role, that the partnership will become stronger and that the two companies will become more integrated.”
Microsoft CEO Satya Nadella welcomed the changes.
“We believe this is an essential first step towards more stable, better informed and more effective governance,” he said on X.
Microsoft shares rose nearly 1% in U.S. premarket trading.
It wasn’t immediately clear whether current board members who don’t own shares in OpenAI would retain their seats or whether the for-profit subsidiary’s backers – such as 49 percent owner Microsoft – would ultimately win board positions.
Unlike most Silicon Valley startups, OpenAI is overseen by a nonprofit parent board designed to ensure AI safety is prioritized alongside growth. In 2019, the limited-profit entity was formed to raise funds and grant stock options to its employees.
“Altman’s return solidifies his influence over the direction of OpenAI and likely means it will be bolder and more profit-oriented, but also perhaps less risk-averse,” said Kyle Rodda, an analyst at Capital.com.
Sam Altman attends the Asia-Pacific Economic Cooperation (APEC) CEO Summit in San Francisco, California, USA on November 16, 2023. Portal/Carlos Barria acquires license rights
Spokespeople for the startup did not immediately respond to a request for comment.
OpenAI’s previous board consisted of Tasha McCauley, Helen Toner and OpenAI chief scientist Ilya Sutskever, as well as Quora CEO D’Angelo, who is part of the new-look board.
Portal previously reported that some shareholders were considering legal action after the turmoil threatened the future of OpenAI, which was recently valued at over $80 billion.
Tuesday’s moves reassured some investors.
“We believe this is the best outcome for the company,” said Thrive Capital, a backer of OpenAI.
The Windows maker announced a multi-year, multi-billion dollar investment in OpenAI in January
YEARS FASTER THAN STEVE JOBS
Altman’s dramatic about-face prompted comparisons in Silicon Valley history with Steve Jobs, the CEO of Apple, who left the computer maker in a power struggle in 1985, only to return 12 years later.
After four days, Altman took back the CEO reins.
His departure caused a major uproar at OpenAI, with President Greg Brockman resigning in protest. On Sunday, Altman was back at OpenAI’s offices awaiting his imminent reappointment when the board surprised again by appointing former Twitch boss Emmett Shear as interim CEO.
In a post on “This was the path that maximized safety while doing the right thing for everyone involved,” he said.
Altman’s feat was made possible in part by Microsoft. When he was unemployed, CEO Nadella said Altman could lead a new research team alongside Brockman and other colleagues leaving OpenAI.
By Monday, nearly all of OpenAI’s 700-plus employees threatened to leave the company and join Microsoft’s efforts unless the board resigned and reinstated Altman, according to a letter reviewed by Portal.
This threat was supported by Microsoft’s enormous computing power, which, together with its computer scientists, is the main asset behind OpenAI’s technology.
Co-founder and President Brockman celebrated with an employee selfie late Tuesday night after beating the U.S. Thanksgiving holiday deadline that the parties were negotiating against.
“We will come back stronger and more united than ever,” he said.
Reporting by Jeffrey Dastin in San Francisco and Aditya Soni, Shivani Tanna and Bansari Mayur Kamdar in Bengaluru. Editing by Dhanya Ann Thoppil, Nivedita Bhattacharjee, Sam Holmes and Jane Merriman
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