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Sam Altman's big lesson from OpenAI battle is that control matters

Dec 04, 2023 - businessinsider.com
Sam Altman, CEO of OpenAI, has emerged victorious from a boardroom battle, highlighting the importance of control within startups. Despite having no equity in the company and an unusual corporate structure that places the board at a greater remove from its C-suite, Altman has managed to retain control. The tension between Altman and board member Helen Toner, who was critical of OpenAI's commitment to safety, resulted in Toner's departure following Altman's return.

The refreshed OpenAI board appears to be more aligned with Altman's ambitions, with new members including ex-Salesforce CEO Bret Taylor and former Treasury Secretary Larry Summers. Despite Altman's claim that the company could function without him, changes in the board and the support of Microsoft's CEO suggest a shift towards a more commercialized OpenAI and a control structure with a distinctly Altman-ish flavor.

Key takeaways:

  • Sam Altman has returned as CEO of OpenAI after a boardroom battle, highlighting the importance of founder control in startups.
  • Despite being CEO, Altman claims to have zero equity in OpenAI and the company's unusual corporate structure places the board at a greater distance from its C-suite.
  • Altman's return has seen changes in the board, with ex-Salesforce CEO Bret Taylor and former Treasury secretary Larry Summers stepping in, both of whom are more supportive of a commercialized OpenAI.
  • OpenAI's version of founder control is unique as its CEO doesn't hold the majority of stock, but the company might now have a distinctly Altman-ish flavor.
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