OpenAI CEO Sam Altman was ousted by the company behind ChatGPT in a shocking restructuring after a review found he was “not consistently candid in his communications with the board,” the Microsoft-backed firm said on Friday.
The leading AI firm did not elaborate on Altman’s mistakes that led to his resignation, saying only in a press release that the board “no longer has confidence in his ability to continue leading OpenAI.”
“Sir. Altman’s departure follows a deliberative review process by the board, which concluded that he was not consistently candid in his communications with the board, which hindered his ability to exercise his responsibilities,” the company said in a statement. your statement.
Altman, 38, did not reveal the reason for his firing, but promised he would have more to say about what comes next in a tweet shortly after the news broke.
“I loved my time at openai. It was transformative for me personally and, hopefully, a little bit for the world. Most of all, I loved working with such talented people,” Altman wrote on X, formerly Twitter.
OpenAI said its chief technology officer, Mira Murati, would serve as the company’s interim CEO effective immediately.
“We are grateful for Sam’s many contributions to the founding and growth of OpenAI,” the board of directors said in a statement. “At the same time, we believe new leadership is necessary as we move forward.”
“As the leader of the company’s research, product and security functions, Mira is uniquely qualified to assume the role of interim CEO. “We have the utmost confidence in her ability to lead OpenAI during this transition period,” the board added.
OpenAI initially said that co-founder Greg Brockman, a close ally of Altman, would step down as chairman of the board but would remain as president of the company.
But on Friday night, Brockman caused even more dismay in Silicon Valley by announcing that he was leaving the company entirely.
“We have all been through difficult and fantastic times together, achieving so much despite all the reasons why it should have been impossible. But according to today’s news, I quit.” Brockman said.
OpenAI declined to comment further.
Altman’s abrupt departure comes amid a heated race in developing advanced artificial intelligence products. Earlier this month, he revealed at an OpenAI event that ChatGPT surpassed 100 million weekly active users in the year since its launch.
OpenAI is also in the midst of a takeover bid that could value the company at more than $80 billion, or about three times its current valuation. It’s unclear whether that process will continue once Altman is gone.
Altman, the face of the AI movement, co-founded the company about eight years ago as a small nonprofit.
Its efforts have been bolstered by Microsoft, which has invested $13 billion in the company for a 49% stake amid intense competition from rivals such as Google. The Information recently reported that OpenAI was offering packages worth up to $10 million to lure top AI talent away from Google.
Microsoft is said to have been surprised by the news, with Tech expert Kara Swisher reports that the company and other key partners “found out minutes before the statement was published.”
“We have a long-term partnership with OpenAI and Microsoft remains committed to Mira and her team as we bring this next era of AI to our customers,” a Microsoft spokesperson said.
Microsoft shares fell about 1% in after-hours trading on the news.
OpenAI and other companies face increasing regulatory scrutiny on Capitol Hill, where lawmakers from both parties have called for laws regulating the use of AI.
In May, Altman expressed support for federal regulation of AI during an appearance on Capitol Hill, where he testified that rules were needed to prevent “significant harm to the world.”
Altman also raised eyebrows earlier this year by signing a statement declaring that AI was a potential existential risk on par with nuclear weapons and pandemics if not properly guided.
