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Sam Altman suddenly looks less powerful. The panic caused by OpenAI's near-death experience is to blame.

Nov 30, 2023 - businessinsider.com
OpenAI, a leading AI company, recently faced a crisis when CEO Sam Altman was fired and threatened to join Microsoft, potentially taking many employees with him. This situation, which could have rendered the startup almost worthless, caused panic among venture capitalists and Microsoft, who had invested billions in the company. However, Altman was reinstated as CEO and the employees stayed, calming the situation. Despite this, the incident highlighted the risk of having the fate of such an important company resting in the hands of one person, leading to calls for a change in governance structure.

In the aftermath, Altman stated that the company would be "totally fine" without him, indicating a shift in power dynamics. The crisis also led to some of OpenAI's partners considering alternative AI providers, highlighting the 'platform risk' associated with the company. In response, OpenAI's new board chair, Bret Taylor, promised to enhance the governance structure to ensure the company's longevity, regardless of who is CEO.

Key takeaways:

  • OpenAI faced a crisis when CEO Sam Altman was fired and threatened to join Microsoft, potentially taking many employees with him, which could have rendered the startup almost worthless.
  • Altman was eventually brought back as CEO and all the employees stayed, with the chaos subsiding when new board members were announced.
  • However, the incident has led to concerns about the reliance on OpenAI's AI platform, with some partners considering switching to other providers or open source models.
  • OpenAI's new board chair, Bret Taylor, has promised to enhance the governance structure of the company to ensure its continued success, regardless of who is CEO.
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