The recent events involving Altman's firing and return have highlighted the flaws in this governance structure. The board, which was designed to resist outside pressure from investors, has seen a significant turnover, with new members likely to be more attuned to investors' interests. Critics argue that without deeper reforms to OpenAI’s governance, the new board will retain the same unchecked powers, and the structure will eventually need shoring up.
Key takeaways:
- OpenAI, co-founded by Sam Altman, has an unusual governance structure where the board of directors, instead of representing financial backers, is tasked with representing the interests of "humanity".
- The board has the right to add or remove members and is answerable only to itself, a structure designed to resist outside pressure from investors.
- After Altman's brief firing and return, the board is expected to bring in six more members, including a representative of Microsoft and possibly Altman himself, who are likely to be more attuned to investors' interests.
- Despite these changes, without deeper reforms to OpenAI’s governance, the new board will retain the same unchecked powers, a structure that some believe defies corporate physics and will eventually need shoring up.