On November 17, 2023, OpenAI's board of directors ousted co-founder and chief executive Sam Altman. In an official post on the company's website, it was stated that "the board no longer has confidence in his ability to continue leading OpenAI". The removal was predicated by employee concerns about his handling of artificial intelligence safety and allegations of abusive behavior. Altman was reinstated on November 22 after pressure from employees and investors. The removal and subsequent reinstatement caused widespread reactions, including impacts felt in the financial markets and technology sector. Microsoft, a partner of OpenAI, received little notice of the removal and experienced a drop in the share price of its stock. The removal also promoted interest in investigations from regulatory agencies.
Background
OpenAI
OpenAI is an artificial intelligence firm founded in December 2015 as a non-profit entity. The for-profit division of the organization released ChatGPT in November 2022, contributing to a resurgence in generative artificial intelligence funding. The board of directors of the controlling non-profit formerly comprised chief scientist Ilya Sutskever, as well as Adam D'Angelo, chief executive of Quora, entrepreneur Tasha McCauley, and Helen Toner, strategy director for the Center for Security and Emerging Technology. As of October 2023, the company is valued at US$80 billion and was set to bring in US$1 billion in revenue. Altman has described OpenAI's relationship with Microsoft as the "best bromance in tech". OpenAI is uniquely structured, an intentional decision to avoid investor control. A board of directors controls the non-profit OpenAI, Inc. The non-profit owns and controls a for-profit company itself controlling a capped-profit company, OpenAI Global, LLC and a holding company owned by employees and other investors. The holding company is the majority owner of OpenAI Global, LLC.; Microsoft owns a minority stake in the capped-profit company. OpenAI's bylaws, enacted in January 2016, allow a majority of its board of directors to remove any director without prior warning or a formal meeting with written consent.
Sam Altman
Sam Altman is a co-founder of OpenAI and its former chief executive; Altman took over the company following co-chair Elon Musk's resignation in 2018. Under Altman, OpenAI has shifted to becoming a for-profit entity. Altman is credited with convincing Microsoft chief executive Satya Nadella with investing US$10 billion in cash and computing credits into OpenAI and leading several tender offer transactions that tripled the company's valuation. Altman testified before the United States Congress speaking critically of artificial intelligence and appeared at the 2023 AI Safety Summit. In the days leading up to his removal, Altman made several public appearances, announcing the GPT-4 Turbo platform at OpenAI's DevDay conference, attending APEC United States 2023, and speaking at an event related to Burning Man.
Events leading up to the removal The resignation of LinkedIn co-founder Reid Hoffman, venture capitalist Shivon Zilis, and former Republican representative Will Hurd from the board allowed the remaining members to remove Altman. According to Kara Swisher and The Wall Street Journal, Sutskever was instrumental in Altman's removal. Disagreements over the safety of artificial intelligence divided employees prior to Altman's removal. The release of ChatGPT created divisions with OpenAI as a for-profit company without considerations for the safety of artificial intelligence and a non-profit cautious of artificial intelligence's capabilities; in a staff email sent in 2019 and obtained by The Atlantic, Altman referred to these divisions as "tribes". Prior to his removal, Altman was seeking billions from Middle Eastern sovereign wealth funds to develop an artificial intelligence chip to compete with Nvidia and courted SoftBank chairman Masayoshi Son to develop artificial intelligence hardware with former Apple designer Jony Ive. Sutskever and his allies opposed these efforts, viewing them as unjustly using the OpenAI name. Altman reduced Sutskever's role in October 2023, furthering divisions; Sutskever successfully appealed to several members of the board. Swisher and The Verge reporter Alex Heath stated that opposition to Altman's profit-driven strategy culminated in the DevDay conference in which Altman announced custom ChatGPT instances. According to Axios, the removal was driven by growing discontent and distrust with Altman. On November 22, 2023, reports emerged suggesting that Sam Altman's dismissal from OpenAI might be linked to his alleged mishandling of a significant breakthrough in the organization's secretive project codenamed Q*. According to sources within OpenAI, Q* is aimed at developing AI capabilities in logical and mathematical reasoning, and reportedly involves performing math on the level of grade-school students. Concerns about Altman's response to this development, specifically regarding the potential safety implications of the discovery, were reportedly raised to the company's board shortly before his firing. A report from The Washington Post in December stated that OpenAI's board of directors were concerned over Altman's allegedly abusive behavior; the complaints were purportedly a major factor in his removal. The Post previously reported that Altman's alleged pattern of deception and subversiveness that ostensibly resulted in his removal from Y Combinator ultimately resulted in the board's decision to remove him. In April 2026, an investigative report from The New Yorker found that Sutskever and others, in response to the board's request, had compiled an approximately 70-page-long annotated dossier consisting of internal communications, documents, and photos. The dossier claimed that Altman "exhibits a consistent pattern of [...] Lying", and that Altman misrepresented information to the company's senior management and board, particularly regarding safety issues.
Removal
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