What on earth is going on at OpenAI?!?!

Oh hey there, Monarch readers 🌟 

Happy Thanksgiving week! 🦃 Madelyn & I are down in Florida looking for some fun 💃🏼 (& mainly relaxation 😴) in the sun ☀️🌊

But guess who hasn’t been feeling RELAXED????

If you find yourself asking: Bailey?? Why NOT ????

Well I’ll tell you why right now… since it’s the focus of today’s article!

My professional peers and everyone in the tech world have been watching a saga straight out of a sci-fi thriller unfold before our eyes. OpenAI, the powerhouse behind ChatGPT, and definitely more importantly, the absolute driving force of AI development & regulation, is coming off of a whirlwind weekend that's more twisty than all of the Succession season finales combined. (s/o Succession & our mans Logan Roy💘)

Let's dive into the drama that's got everyone from Silicon Valley to Wall Street to Twitter talking.

So… What's Happening at OpenAI? 🤔

For those new to the AI party, OpenAI is the big brain behind some groundbreaking AI advancements, like ChatGPT. Even if you don’t directly use ChatGPT, there’s a good chance you’ve used it’s technology, since it’s already been integrated into thousands of products worldwide. A few examples include Microsoft, Duolingo, and Stripe.

The tech world went into a frenzy when news broke that Sam Altman, OpenAI's CEO, was shown the exit. Why's it a big deal? Well, OpenAI isn't your typical tech company. It's a hybrid of profit-driven ambitions and lofty goals to develop AI for humanity's benefit. Altman's departure isn't just a CEO shuffle; it hints at a deeper philosophical divide over the future of AI.

The Who's Who of the Drama 🎭

First up, the cofounders at the center of it all:

Sam Altman: The now-former Co-Founder and CEO of OpenAI, known for securing a cool 13 BILLION dollars in funding from Microsoft and other investors. Sam was fired by his fellow co-founder, Ilya.

Greg Brockman: OpenAI’s Co-Founder and President, who was fired within the same hour as Sam.

Ilya Sutskever: OpenAI’s Chief Scientist, who has worked side by side with Sam for years. He has since apologized (more on that below)

Mira Murati: OpenAI’s Chief Technology Officer, who temporarily stepped in as interim CEO upon Sam & Greg’s departure. She was unaware of the firing, and starkly supports Sam & Greg.

Greg’s tweet from Friday summarizes the timeline (almost) too well 💪🏼:

THE OTHERS INVOLVED:

OpenAI Board Members: The compilation of those who oversee OpenAI. Cofounders are also on the board, but having others as well is supposed to lower the risks associated with too much power & decision making within one place. The only statement the remaining board has released:

"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.”

*Note that this statement has been ripped to shreds by investors and the general public alike, specifically the ‘deliberative review process’ portion.

Satya Nadella: Microsoft's baddy head honcho, wasted no time before hiring Altman into a new advanced research lab at Microsoft. More on that below, but a good summary is: our mans is PISSED O F F.

The Play-by-Play 📌

Friday Shockwave: Sam Altman is ousted out of NOWHERE from OpenAI by his cofounder Ilya. It seems Ilya went to the board with concerns about Sam, which are unknown to the general public. This leaves not only Sam and the rest of the leadership team, but the roughly 700 employees incredibly rattled.

Microsoft's Maneuver: Despite the firing, Microsoft didn't waste time - Satya Nadella, Microsoft’s incredibly respected CEO, immediately swooped in to hire Altman for a new role within Microsoft over the weekend, before the Stock market even reopened!

Boardroom Battles: OpenAI's board, including some 'doomers' (ie: those worried about AI's existential risks), clash over Altman's aggressive AI commercialization approach. While vague, this is the only information we (the general public) currently have. This clash becomes increasingly evident, as Sam considers rejoining OpenAI pending safeguards are put in place for such firing to not happen again.

The Twist: Emmett Shear, known for cofounding Twitch AND for his AI skepticism, steps in as the new interim chief. In the last few hours, Emmet has made it clear that he will immediately step down from his brand new role if the board is unable to provide reasoning behind Sam’s firing.

Irritated Investors: Investors like Marc Andreessen and Vinod Khosla are reportedly frustrated at OpenAI’s actions and lack of communication, seeing this as a large setback for innovation.

Employee Ultimatum: A significant portion of OpenAI's workforce threatens to leave unless the board resigns. As of the latest update, over 550 of the ~700 employees threaten to leave the company and follow Sam to his new venture if he’s not rehired!

Regretful Revelations: Ilya Sutskever expresses remorse over his role in Altman's firing. Literally LOOK at this tweet 🤯

Microsoft's Commitment: Despite the upheaval, Microsoft remains dedicated to its partnership with OpenAI.

The Closing Act is just an intermission: the Tech World is in FLUX 🚀

As we close this chapter of the OpenAI saga and eagerly await the updates, it's clear that the AI landscape is as unpredictable as ever. From boardroom battles to industry-wide philosophical divides, the future of AI is being shaped in real-time, and the stakes couldn't be higher. Whether you're an AI enthusiast, a skeptic, or just love some good corporate drama, this story is a reminder that the brand new tech territory is FULL of surprises. Stay tuned as we keep our eyes peeled for the next twist in this tech tale! 🌌👀

TTYL & ILY,

Bailey

Sources:

1. Morning Brew: Main Issue, November 21st 2023

2. Bloomberg: Everything You Need to Know About the Future of AI

3. The New York Times: What Happened in the World of Artificial Intelligence?

4. Axios: What OpenAI's board was thinking

5. Business Insider: If OpenAI's board was trying to save humanity from Sam Altman, it failed

6. LiveMint: List of companies integrated with GPT