Do The Letters In The Job Title Make The Value Stack-up

By Brett Hurll


  OpenAI Faces Internal Upheaval Following Altman's Dismissal

OpenAI, a leading entity in artificial intelligence, is currently in the throes of an internal crisis following the controversial dismissal of Sam Altman. Ilya Sutskever, OpenAI's CTO and a central figure in the board's decision to remove Altman, expressed remorse over the weekend's events, stating, “I never intended to harm OpenAI.”

This upheaval coincided with Microsoft's share price hitting a record high, and the appointment of Emmett Shear, ex-CEO of Twitch, as OpenAI's interim chief executive. Shear has openly criticized Altman's firing and committed to investigating the incident.

In a remarkable display of unity, a vast majority of OpenAI's staff, over 700 out of 770, signed an open letter to the board. The letter critiqued the board's handling of the removal of Altman and co-founder Greg Brockman, alleging it undermined the company's mission and highlighted the board's lack of competence.

Brockman has since joined Altman at Microsoft, with both set to embark on a new project. Confusion escalated when Sutskever and Mira Murati, initially named interim CEO, endorsed the staff petition. Shear, appointed as the second interim CEO, acknowledged the flawed handling of Altman's dismissal and its adverse impact on trust within the company. He emphasized the need to reform the management in response to recent departures.

The tension stems from OpenAI's unique business model. Founded as a non-profit aimed at ensuring AI's benefit to humanity, it shifted to a "capped profit" structure in 2019, raising questions about a potential conflict between revenue maximization and safety.

The remaining board members, all with AI safety backgrounds, include Adam D’Angelo, Tasha McCauley, and Helen Toner. They are linked to Effective Altruism and have emphasized AI safety in their work.

Shear, known for advocating a cautious approach to AI development, reassured investors upon assuming leadership, clarifying that the board's decision was not rooted in safety concerns but rather differed from that narrative.

The news of Microsoft CEO Satya Nadella bringing Altman and Brockman in-house for an advanced AI research team has sent ripples through Silicon Valley.

Microsoft, owning a significant stake in OpenAI, remains a pivotal strategic partner. Amidst the chaos, Microsoft's CTO Kevin Scott offered reassurance of continued support to OpenAI staff.

Speculations are rife about potential new board members, including Brian Chesky of Airbnb and Bret Taylor, former CEO of Salesforce.

Altman, a prominent figure in Silicon Valley, previously led Y Combinator, nurturing successful startups like Airbnb, Reddit, and Stripe. He lives with his partner, Oliver Mulherin, in San Francisco and Napa Valley, where they maintain a ranch.

Despite his significant role, Altman reportedly holds no equity in OpenAI and draws a minimal salary. The company, valued at $86 billion in recent talks, faces uncertainty regarding these discussions and the impact on employee share value.

A newsletter from SemiAnalysis hinted at the potential fallout from the recent events, with key employees likely losing out on lucrative profit participation units due to the upheaval at OpenAI.


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