A narration of 2023’s most perplexing corporate tech story starring OpenAI CEO Sam Altman and the board of directors who tried to fire him.
Act 1:
The Grand Formula One Entrée
In the glitzy landscape of Las Vegas, where the world’s elite flocked for the inaugural Formula One race, the city witnessed more than just high-speed thrills. Around noon on November 17, Sam Altman, the charismatic chief executive of OpenAI, found himself on a video call in his luxury hotel room. What transpired in that call would send shockwaves through the tech industry, sparking a power struggle that exposed deep-seated divisions within OpenAI’s leadership.
Act 2:
Boardroom Betrayal
Picture Altman’s surprise when he logged in and saw not just Ilya Sutskever, OpenAI’s chief scientist and co-founder, but also three other board members virtually flanking him. The previous clandestine meeting had sealed Altman’s fate, with board members accusing him of dishonesty and questioning his fitness to lead the AI charge. Altman, blindsided and initially cooperative, soon pivoted to a full-scale war against the very company he helped build. Behind the scenes, 770 OpenAI employees were left scratching their heads about the future of artificial intelligence. Microsoft, holding a 49% stake and a front-row seat to the drama, could only watch helplessly as chaos reigned within its partner company.
Act 3:
Ambitions Beyond the Code
The plot thickened as rumours circulated about Sam Altman’s alleged distractions. As the narrative unfolded, it became clear that Altman’s ambitions extended beyond OpenAI. His involvement in various projects, from a crypto venture named Worldcoin to an AI chip project, had raised eyebrows among the board members for quite some time. Before his shocking expulsion, Altman had spent time in the Middle East, raising funds for a new chip venture billed as a competitor to Nvidia – a high-dollar side project that sources say added extra pressure to an already-strained relationship.
Per reports, Altman’s side hustle, dubbed ‘Tigris’, appears quite ambitious. Nvidia has a chokehold on the semiconductor marketplace, as its popular GPU chips remain the favourite among AI startups for their computing power, and Altman wanted to take some of that market share away from Nvidia by introducing his own lower-cost Tensor Processing Units, or TPUs, to the industry. This would not only stand to displace the market incumbent but would also give OpenAI more control over its production, likely making its products cheaper in the long run.
While the imagined chip would theoretically lower production costs over time, the effort certainly wouldn’t be cheap on the front end. Altman’s goal is to amass tens of billions of dollars for the nascent venture from the likes of SoftBank, Saudi Arabia’s Public Investment Fund, and Mubadala Investment Company – no small effort!
And it’s not just Tigris that the former OpenAI CEO – who had already been offered employment at Microsoft – is said to be hunting down investors for. According to reports, Altman is also collaborating with legendary Apple designer Jony Ive on a secret-shrouded AI hardware effort, which he was actively pitching to potential funders in the Middle East in the run-up to his surprise firing.
You’ll notice a risky throughline between those side projects as well – they would both be swimming in the same financial waters as OpenAI, with the chipmaker potentially selling its hardware, and the Jony Ive venture likely using its API.
It may have been especially trepidatious timing for OpenAI’s charismatic leader to be shopping around for his side hustles. Reports indicate that OpenAI has been looking to clinch a delicate offer that ‘would let employees sell their shares at USD 86 billion valuation. It could well have been that OpenAI’s board feared that Altman’s fundraising could disrupt the deal or garner government scrutiny, especially considering the federal government’s particular sensitivities around technologies like AI and chips. Sam Altman was also becoming bigger than the company itself, something that clearly made the board members uncomfortable.
Act 4:
Clash of Visions
Upon an overall assessment of the situation, it appeared that the clash wasn’t just about Altman’s interests outside of OpenAI, but rather on differing AI philosophies and a battle of business interests. On one side stood those like Elon Musk who were wary of AI’s potential dangers and advocating for a cautious approach. Contrastingly, figures like Sam Altman saw AI as a lucrative opportunity, pushing for a more commercially focused direction. The board, embodying these divergent philosophies and business pursuits, became a battleground for deciding the very future of OpenAI. The clash of visions added a volatile layer to the unfolding drama, setting the stage for the power struggle that would ensue.
OpenAI, with its mission to ensure that Artificial General Intelligence (AGI) benefits all of humanity, had already grappled with the question of the most effective path forward. Some board members, rooted in nonprofit backgrounds and academic traditions, were cautious about the rapid commercialisation of AI. Altman’s ‘move fast and break things’ approach, emblematic of the for-profit tech culture, didn’t necessarily sit well with them. They felt that Altman’s strategies were disingenuous and too calculating, especially considering the potentially far-reaching consequences of AGI development.
The tension between Altman and board member Helen Toner epitomised this clash. Toner, a researcher associated with a think tank, had criticised OpenAI’s hasty release of ChatGPT, advocating for a more measured approach. Altman, in response, had not only dismissed such concerns but also allegedly played a role in sowing tensions between Toner and another board member, Tasha McCauley, widening the for-profit vs. nonprofit schism.
Altman’s strained relationship with Ilya Sutskever further underscored the clash of ideologies. Sutskever, recognised as an AI visionary with an academic perspective, found himself at odds with Altman’s rapid development agenda. An October incident, where Altman promoted a researcher to a level equivalent to Sutskever, elevated the tensions between them past the tipping point. Sutskever’s frustration at being ‘pushed out of decisions’ and his inclination for a cautious AI approach clashed starkly with Altman’s commercially driven vision.
Some board members viewed Altman as disingenuous and overly strategic, with a move-fast ethos that didn’t align with their nonprofit and academic backgrounds. Fearful of Altman’s potential reactions if they openly discussed removing him, the board aimed for a surprise announcement. In meetings following Altman’s ousting, it was revealed that he had given conflicting opinions to different board members, indicating a deeper communication breakdown.
Act 5:
OpenAI Is Nothing Without Its People
What followed is a tech soap opera of epic proportions. Replacement CEOs shuffled in and out like they were auditioning for a reality show. The power dynamics in this tech saga turned out to be more chaotic than a water balloon fight at a summer carnival. In response to the OpenAI board’s decision, Microsoft hired Sam Altman and Greg Brockman, OpenAI’s president and a company co-founder, announced that they would also lead an advanced research lab at Microsoft. OpenAI’s office in San Francisco turned into a battleground as employees demanded answers. They signed a letter asking for the return of their beloved CEO and for the board to resign, threatening to join their leader at Microsoft if their terms were not met. Altman, sensing an opportunity, rallied his supporters, including Microsoft’s top executives. Tweets started appearing with OpenAI employees saying “OpenAI is nothing without its people.” Even Ilya Sutskever backtracked on his decision to participate in the board’s decision.
Act 6:
Resurgence and the Microsoft Gambit
In a 48-hour whirlwind of negotiations and power plays, and just five days from the day of the ousting, Altman successfully reclaimed his position. However, this victory came with concessions. Altman was reinstated as CEO, but not granted a seat on the board. The original board underwent a significant restructuring, removing Helen Toner and Tasha McCauley, retaining only one original member, and welcoming new replacements for everyone else. Notable among the additions was Lawrence H. Summers, former Treasury Secretary, who joined the board alongside other independent members.
The End! But…
The saga of Sam Altman and OpenAI is not just a riveting narrative, but also a reflection of the broader challenges and dynamics in the tech industry. As we contemplate the events that transpired, the implications for the future of artificial intelligence must be pondered as well.
The clash of visions within OpenAI, reflecting a broader debate in the industry, highlights the delicate balance between technological advancement and ethical considerations. The divergent philosophies embodied by figures like Elon Musk and Sam Altman underscore the challenges of navigating uncharted territories in AI development. It prompts us to question whether the pursuit of commercial opportunities should override cautious approaches to mitigate potential risks.
The soap opera’s climax, with Altman’s return and Microsoft’s strategic move, raises questions about the influence of major stakeholders in shaping the trajectory of tech giants. It prompts us to reflect on the intricate web of alliances and dependencies that define the tech landscape, and the potential consequences of such power plays on the industry’s direction.
As we await the next act in this ongoing drama, the unanswered questions about Project Q and the potential dangers it poses linger in our minds. It’s a stark reminder that the development of artificial intelligence is a social responsibility as much as a technological endeavour. The cautionary tale of OpenAI urges us to approach the AI revolution with vigilance, ensuring its trajectory is guided by ethical guidelines and responsible practices.
The stage is set, and the audience eagerly awaits the next episode of this ever-evolving tech drama – a reflection of the challenges and opportunities that lie ahead as the world of today navigates the uncharted waters of artificial intelligence.
