A coup, threats of exodus and compromises: How Sam Altman’s return as OpenAI CEO played out

In a dramatic turn of events, OpenAI finally announced the reinstatement of Sam Altman as CEO yesterday, resolving a high-stakes corporate power struggle that unfolded over the past week. The decision was reached following negotiations involving Altman, the company’s board, and key executives, ultimately averting a potential mass exodus of employees. The turmoil began when Altman was ousted from his position as CEO due to disagreements with the board regarding the pace of development and commercialization of generative AI. The move shocked investors and prompted the majority of OpenAI’s workforce to resign, following Altman to Microsoft, the company’s primary supporter. The reinstatement agreement includes an overhauled board, led by Bret Taylor, former co-CEO of Salesforce Inc. Other board members include Larry Summers, former US Treasury Secretary, and existing member Adam D’Angelo, co-founder and CEO of Quora Inc. Altman will return as CEO, but the final composition of the board is yet to be determined. The resolution was met with relief and celebration among OpenAI employees, who had faced uncertainty about their jobs, equity, and the company’s direction. The reinstatement marks a crucial moment for the influential startup, known for its pioneering work in artificial intelligence. Despite the positive outcome, several details remain unresolved. The circumstances leading to Altman’s initial ousting and the final composition of the board are still unclear. OpenAI also faces the challenge of rebuilding its reputation as a cohesive and functional company, given its role in developing powerful and potentially unsettling technology. Altman’s return signifies a significant development for OpenAI, a company that has played a pivotal role in shaping public perceptions of AI, particularly with the success of its chatbot, ChatGPT. The reinstatement aims to pull the startup back from the brink and resume normal operations. While Altman’s return brings a sense of stability, OpenAI will need to address ongoing challenges in the field of AI and navigate its role as a leader in the industry. The company’s ability to regain trust and move forward after this tumultuous period will shape its future trajectory in the rapidly evolving landscape of artificial intelligence. (With inputs from agencies)