Tech Shocker: Sam Altman Out At OpenAI, Hired By Microsoft
How the company that runs ChatGPT tried and failed to get Altman back this weekend
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Good morning,
It’s Thanksgiving week, and you might already be on the road to visit family or friends. AAA expects about 1 out of 6 Americans are traveling this week.
Airlines are expecting record numbers of travelers. TSA plans to screen 30 million passengers from Nov. 17 through Nov. 28, the most ever. Don’t forget to check the weather forecast. Rain and/or snow is expected in a number of places this week.
Have a good one!
Mosheh, Jill, & Lauren
🗞 HOW OPENAI ROYALLY SCREWED UP ALTMAN FIRING
The CEO of OpenAI, Sam Altman, the most-well known leader in the artificial intelligence space, was fired on Friday. Then, early Monday he was hired by Microsoft — the largest investor in OpenAI. What’s going on?
It has been a chaotic weekend at the company behind ChatGPT, currently valued at more than $80 billion. It’s a fast-moving chain of events that have shocked much of the company and the larger tech world.
NOT “CONSISTENTLY CANDID”
The original announcement gave few details. The board of directors removed Altman in a surprise move Friday. OpenAI President Greg Brockman then resigned as president in solidarity with Altman.
Brockman spelled out the short timeline of events, which appeared to shock everyone but four of the six board members — excluding Altman and Brockman.
The Board’s blog post: “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, hindering its ability to exercise its responsibilities.”
Ilya Sutskever, a board member, AI researcher, and co-founded OpenAI — with Altman and others in 2015 — reportedly led the move to remove Altman, worried that the technology could be dangerous and that he was not managing that risk. And more, there were safety concerns around Altman’s fundraising with autocratic regimes in the Middle East that could misuse the technology.
HOW CAN THEY DO THAT?
Altman led OpenAI since 2019, and has been the face of AI before Congress and around the world.
Altman oversaw OpenAI's restructuring from a pure non-profit organization dedicated to developing AI, to a non-profit with a for-profit arm.
That for-profit company took OpenAI to a valuation of nearly $90 billion in just a few years.
OpenAI is still overseen by the non-profit's board — not a group of directors solely focused on shareholder value. Under the rules, the board can’t have a massive financial stake in the company.
With this structure in place, Microsoft became OpenAI's biggest collaborator and investor in its for-profit arm. It was blindsided, only learning about Altman’s ouster a minute before the public announcement.
Microsoft has reportedly invested $13 billion into OpenAI's for-profit arm, but without a board seat or any other legal mechanism to exercise influence.
BUT, WHY?
According to reports, a rift had developed within the company's leadership over its tech development vs. its mission of creating safe AI, leading to the ouster. It did not have anything to do with “malfeasance or anything related to our financial, business, safety or security/privacy practice.”
Attracting investors — the primary reason OpenAI created a "capped" for-profit arm — requires continued growth.
For weeks, tensions had increased around the rapid expansion of OpenAI’s commercial offerings. Some board members felt it was impacting their mission of safe AI.
FORK IN THE ROAD
Sam Altman was back at OpenAI Sunday (with a guest pass) discussing a possible return to the company, even as he considers launching a new AI venture. It came after OpenAI employees were in open revolt over the move.
By Friday evening, three senior researchers reportedly resigned. By Saturday, the company was in chaos with its roughly 700 employees struggling to understand the board’s move. With fears of a mass exodus, executives and investors wanted Altman back as CEO.
In the end, Microsoft CEO Satya Nadella announced that both Altman and Brockman will join to lead Microsoft’s new advanced AI research team.
Altman had been negotiating to return as OpenAI CEO, but OpenAI’s four-person board refused to step down — which he required.
Meanwhile, OpenAI's board named its third CEO in three day — Twitch co-founder Emmett Shear will be interim CEO. He replaces Mira Murati, who was named interim CEO when Altman was fired. She will return to her role as OpenAI’s chief technology officer.
Today is sure to be a weird one at the office.
⏳ SPEED READ
🚨NATION
📌 Rosalynn Carter, former first lady and tireless humanitarian who advocated for mental health issues, dies at 96 (NBC NEWS)
📌 With Biden turning 81 today, White House focused on other issues (NY TIMES)
📌 Neo-Nazis with swastika flags hold ‘disgusting and repugnant’ march in Madison, Wisc. (NY POST)
📌 Trump returns to the US-Mexico border to lay hard-line immigration proposals and gets governor’s endorsement (AP)
🌎 AROUND THE WORLD
📌 US, Qatar indicate hostage deal near, as rumors swirl of swap with a short ceasefire (TIMES OF ISRAEL)
📌 31 premature babies evacuated from al-Shifa hospital in Gaza (AP)
📌 Argentina elects far-right libertarian as the nation’s new president (CNN)
📌 Indian officials consider five new plans to rescue men trapped in tunnel (REUTERS)
📌 Icelandic town may be evacuated for months as volcanic rumbling continues (FOX NEWS)
📱BUSINESS, SCIENCE & TECH
📌 Right-wing influencers pledge to bail out Elon Musk after Apple, Disney, others suspend advertising on X (MASHABLE)
📌 Honda recalls nearly 250,000 cars, SUVs and pickup trucks (NPR)
📌 Bayer ordered to pay $1.56 billion in latest US trial loss over Roundup weedkiller (REUTERS)
📌 Salmonella-infected cantaloupes leave dozens sick in 15 states (FOX NEWS)
🎬 SPORTS & ENTERTAINMENT
📌 Diddy and Cassie settle lawsuit accusing music mogul of rape and abuse: 'decided to resolve this matter amicably' (PEOPLE)
📌 Taylor Swift postpones Brazil show due to heat, day after fan dies during concert (NPR)
📌 Miss Nicaragua wins 2023 Miss Universe pageant (CNN)
📌 F1 fans file class-action lawsuit against the Las Vegas Grand Prix (AP)
🗓 ON THIS DAY: NOVEMBER 20
1942: President Joe Biden was born in Scranton, PA.
1945: The Nuremberg trials began against 24 high-ranking Nazis in Nuremberg, Germany for atrocities committed during World War II.
The trials were conducted by an international tribunal made up of representatives from the U.S., the Soviet Union, France and Great Britain. It was the first trial of its kind, and the defendants faced charges ranging from crimes against peace, of war, and against humanity.
1992: 'Home Alone 2: Lost In New York' premiered in theaters.
1998: American tobacco companies signed an agreement with 46 U.S. states over public-health costs connected to smoking. The tobacco manufacturers agreed to pay $206 billion, which was the largest civil settlement in U.S. history.
2001: P!nk’s Missundaztood album is released with hits "Get The Party Started" and "Family Portrait."