Sam Altman: What on earth is happening at OpenAI?

Imagine a boardroom battle at a multi-billion-dollar company with futuristic technology that could either save or destroy the world.

The chief executive, who holds sway with world leaders, is ousted as senior colleagues turn against him—only for the rest of the company to demand their own dismissals.

No, that’s not my pitch for a Netflix drama; that’s essentially what has transpired over the past few days at OpenAI.

Tech journalists, enthusiasts, and investors have been captivated by the unfolding events, although opinions vary on whether it was a high-stakes thriller or a farce.

How it started…

The power struggle at the helm of OpenAI, the creator of the AI chatbot ChatGPT, erupted suddenly last Friday when the board of directors announced the firing of co-founder and CEO Sam Altman.

In a blog post, the board accused Mr. Altman of not being “consistently candid in his communications,” leading them to “lose confidence” in his leadership.

With only six people on the board, two of them being Sam Altman and his co-founder Greg Brockman—who resigned after Altman’s dismissal—dramatic events unfolded at OpenAI.

So, four individuals intimately familiar with Mr. Altman and the business reached a breaking point of such gravity that they took immediate action, catching the entire tech community off guard, including, reportedly, their own investors.

Elon Musk, also an original co-founder at OpenAI, expressed deep concern on X, formerly Twitter, stating that he was “very worried.”

Ilya Sutskever, the firm’s chief scientist and a board member, emphasized that he “would not take such drastic action unless he felt it was absolutely necessary.”

Mr. Sutskever has since voiced his regret and is among the many signatories of a powerful letter to the board of directors, urging the reinstatement of Mr. Altman and Mr. Brockman and hinting at potential departures from OpenAI if the two men are not brought back.

What caused this conflict?

The exact trigger for this swiftly escalating situation remains unclear, but let’s explore some possibilities.

There are reports that Mr. Altman was contemplating hardware projects, including the funding and development of an AI chip, which would have represented a significant departure for OpenAI. Could he have made commitments that the board was unaware of?

Alternatively, the root cause might be a timeless and very human tension: money.

While an internal memo, widely reported, emphasized that the board was not accusing Mr. Altman of any “financial malfeasance,” it’s essential to note that OpenAI was initially established as a non-profit organization. Non-profits do not aim to generate profits; they cover operating costs with the income they receive, with any surplus reinvested into the business. In 2019, a profit-oriented arm was created, detailing how the two sides would coexist, with the non-profit leading, and a cap imposed on investor returns.

However, not everyone supported this approach, with Elon Musk reportedly citing it as a key reason for his departure from the firm. Now, OpenAI finds itself in a financially robust position, reportedly valued at $86 billion (£68 billion) in a staff stock sale that did not proceed today.

Could there have been ambitions to strengthen the power of the for-profit side of the business?

How will this conclude?

OpenAI is on a quest for AGI – artificial general intelligence. This concept, still nonexistent, evokes both fear and awe. It envisions AI tools that can perform a range of tasks equal to or better than humans. The potential impact on jobs, finances, and education is immense, as machines could replace human capabilities. Although AGI is a powerful concept, it remains a work in progress.

Is OpenAI closer to achieving AGI than we realize, and does Mr. Altman possess critical insights? In a recent speech, he hinted that what’s coming next year will surpass the current capabilities of ChatGPT, describing it as making the current bot look like “a quaint relative.”

However, Emmett Shear, OpenAI’s new interim CEO, stated on X that Sam Altman was not removed over any specific disagreement on safety. An investigation into the events is promised.

Microsoft, OpenAI’s major investor, is not willing to risk Mr. Altman taking his expertise elsewhere. He and co-founder Greg Brockman will be leading a newly established AI research team at Microsoft, potentially taking some of OpenAI’s top talent with them.

Amidst this, OpenAI staff members are emphasizing on X that “OpenAI is nothing without its people.” It raises questions about whether Emmett Shear needs to consider hiring, or if it’s a reminder that, despite the technological focus, this saga is fundamentally a human drama.

Reports from outside OpenAI’s headquarters indicate no signs of people arriving for work, adding to the intrigue of this unfolding story.