Article: ChatGPT owner OpenAI's board fires CEO without warning, then company President quits

[Reality]

 

[Runwildboys]

I bet the A.I. planned this...

...and so it begins

 

[Reality]

Well, that didn't take long ..

 

[Runwildboys]

Well, that didn't take long ..

"I'm sorry, I didn't mean it!"

 

[gtb1943]

Jocks fight with fists
geeks fight with mice

 

[rags747]

Investors are highly pissed off that Altman was let go.

 

[VaqueroTD]

Almost sounds like the common plotline in every sci-fi movie....

Greedy board of directors gets rid of CEO who is in the way, usually with too much integrity or heart.

Thus clears the road for the AI apocalypse, the misuse of technology or whatever the movie is about. LOL

 

[Reality]

Investors are highly pissed off that Altman was let go.

It's a struggle between two different ideologies.

OpenAI was created as a non-profit organization, hence the word "open", so they technically have no owners and have no shareholders. It is run by an indepedent board (who have no ownership stake) like most non-profit organizations.

The problem is that because they wanted to generate (receive a lot of) investments, they created a wholly-owned for-profit subsidiary called OpenAI Global, LLC.

The non-profit is not meant to make money, but the for-profit subsidiary's goal is definitely to make money.

From what has come out about the whole situation, the non-profit board fired the CEO because he was "not being candid" (their words), but speculation has been that the CEO was more focused on the for-profit company, which conflicted with the mission of the parent, OpenAI, company.

However, the way they went about firing the CEO with no warning and without any specific event or actions by the CEO caused the internet, and subsequently the tech industry and the media, to react very strongly. They also excluded the Board Chairman (the President of the company) from the meeting and the vote.

It also came out that the board did not tell Microsoft, who has invested supposedly over $10 billion in OpenAI (no idea how that is structured, what they get, etc.), about it ahead of time, and rumors are spreading that Microsoft was not happy with the decision and not happy, given their huge investment, they were not consulted.

The rumors now are that the OpenAI non-profit board is expected to resign if the CEO and President return.

In the meantime, 3 OpenAI researchers also quit. I have no idea of their roles or whether it is because they fired the CEO or because there is speculation they are bringing him back.

Also, the fired CEO and President are already working on a new AI venture and supposedly have a lot of companies and investors lining up to fund them.

Regardless, the core of this situation is because the non-profit and for-profit ideologies conflict with each other, especially because it is AI and there is a lot of excitement and concern about its impact on the world.

 

[rags747]

Yes and Elon is pissed as he was the major push to start OpenAI to counteract Google. Microsoft evidently is in for $13B but it is to be provided in tranches, Microsoft is the largest investor So you can see why they would be upset.

 

[Reality]

The deal to bring Sam Altman back to OpenAI has fallen apart
https://www.theverge.com/2023/11/20/23967515/sam-altman-openai-board-fired-new-ceo

After a two-day boardroom power struggle, Twitch CEO Emmett Shear will take over as interim CEO of OpenAI.

That’s three CEOs in three days, if you’re keeping track.

On Saturday night, sources told The Verge that the remaining board members had missed a 5PM PT deadline to resign and reinstate Altman and fellow co-founder Greg Brockman or face a slew of staff resignations. After the deadline passed, droves of OpenAI employees started posting their support for Altman on social media.

 

[VaqueroTD]

It's a struggle between two different ideologies.

OpenAI was created as a non-profit organization, hence the word "open", so they technically have no owners and have no shareholders. It is run by an indepedent board (who have no ownership stake) like most non-profit organizations.

The problem is that because they wanted to generate (receive a lot of) investments, they created a wholly-owned for-profit subsidiary called OpenAI Global, LLC.

The non-profit is not meant to make money, but the for-profit subsidiary's goal is definitely to make money.

From what has come out about the whole situation, the non-profit board fired the CEO because he was "not being candid" (their words), but speculation has been that the CEO was more focused on the for-profit company, which conflicted with the mission of the parent, OpenAI, company.

However, the way they went about firing the CEO with no warning and without any specific event or actions by the CEO caused the internet, and subsequently the tech industry and the media, to react very strongly. They also excluded the Board Chairman (the President of the company) from the meeting and the vote.

It also came out that the board did not tell Microsoft, who has invested supposedly over $10 billion in OpenAI (no idea how that is structured, what they get, etc.), about it ahead of time, and rumors are spreading that Microsoft was not happy with the decision and not happy, given their huge investment, they were not consulted.

The rumors now are that the OpenAI non-profit board is expected to resign if the CEO and President return.

In the meantime, 3 OpenAI researchers also quit. I have no idea of their roles or whether it is because they fired the CEO or because there is speculation they are bringing him back.

Also, the fired CEO and President are already working on a new AI venture and supposedly have a lot of companies and investors lining up to fund them.

Regardless, the core of this situation is because the non-profit and for-profit ideologies conflict with each other, especially because it is AI and there is a lot of excitement and concern about its impact on the world.

I take it back then… typical sci-fi plot but roles reversed. Board of directors trying to save humanity. But the CEO has been unleashed!

 

[Reality]

I take it back then… typical sci-fi plot but roles reversed. Board of directors trying to save humanity. But the CEO has been unleashed!

The story is becoming more movie-worthy every day.

The latest rumors coming out are that Microsoft announced they were hiring the former OpenAI CEO and President for a new AI division, then 700 of the 770 employees at OpenAI signed a letter stating they were going to quit if the board did not resign.

It is sounding more and more like a power struggle between the board and the CEO and the employees are siding with the one they know who helped make OpenAI into one of the biggest up-and-coming tech companies rather than a board of people who likely have little to no interaction with the employees.

 

[CalPolyTechnique]

Alarming.

When starting OpenAI, Altman told CNN in 2015 he wanted to steer the path of AI, rather than worrying about the potential harms and doing nothing. “I sleep better knowing I can have some influence now,” he said.

Despite his leadership status, Altman says he remains concerned about the technology. “I prep for survival,” he said in a 2016 profile in the New Yorker, noting several possible disaster scenarios, including “A.I. that attacks us.”

“I have guns, gold, potassium iodide, antibiotics, batteries, water, gas masks from the Israeli Defense Force, and a big patch of land in Big Sur I can fly to,” he said.

https://amp.cnn.com/cnn/2023/10/31/tech/sam-altman-ai-risk-taker/index.html

 

[gtb1943]

The more I hear about Altman the more I think he just might have a few screws loose...

Having had some experience working with nuclear items, the whole thing with Potassium Iodide makes me shake my head. If radiation is a real problem that will help VERY little.
If you need a gas mask for more than a very short period of time you are DEAD.
Antibiotics? Many have a VERY short shelf life.

 

[ShortRound]

I think this whole ordeal was orchestrated by Microsoft/Satya. Just a theory I’m seeing online but it’s Godfather level. If the OpenAI employees do follow Sam to MSFT, they would have acquired a leader in AI for nothing lol. Satya for CEO of the decade.

 

[Reality]

I think this whole ordeal was orchestrated by Microsoft/Satya. Just a theory I’m seeing online but it’s Godfather level. If the OpenAI employees do follow Sam to MSFT, they would have acquired a leader in AI for nothing lol. Satya for CEO of the decade.

I think Microsoft would have done that before repeatedly investing billions into OpenAI if that is what they really wanted to happen.

It may have been a power move by Altman to push for more commercial focus until the board drew a line or it could have been something as simple as he wanted the board to rubberstamp his decisions and plans, and they wouldn't so he stopped cooperating fully with them.

That said, I think the real issue is that the board, either through obligation or through their own viewpoints, believed Altman cared more about commercializing OpenAI than staying true to its non-profit mission of providing AI to the world.

If that is the case, they are probably not wrong about that, but AI is the next big evolutionary tech jump much like when the internet became mainstream, so it is easy to see how most CEOs in that position are going to be drawn to the money, power and fame of being the main face of it.

When OpenAI launched their for-profit subsidiary venture (OpenAI Global) they should have transferred Altman over to be CEO of that venture and brought in a new CEO for the non-profit OpenAI organization, preferrably someone with experience running a large non-profit organization.

Personally, I think the best move for OpenAI would be to separate and sell their for-profit subsidiary. Microsoft would receive ownership based on their previous investments in the company.

They could take the money from the sale and fund the non-profit organization indefinitely if it is run and managed well.

Altman and Brockman could take the reins of the new commercial venture and OpenAI can go back to focusing on providing AI to the world.

 

[Reality]