Hello User
Sign in
Sign Out
Next Story
Business News/ Companies / News/  OpenAI board misses 5 pm deadline to resign, mass exodus of employees expected

OpenAI board misses 5 pm deadline to resign, mass exodus of employees expected

Should Sam Altman opt to depart and establish a new venture, it is anticipated that his employees from OpenAI would likely follow suit

(FILES) Sam Altman, CEO of OpenAI, speaks during The Wall Street Journal's WSJ Tech Live Conference in Laguna Beach, California on October 17

The ousted CEO of OpenAI, Sam Altman is likely to return to the company amid immense pressure on the board to reinstate the co-founder, as per multiple reports.

A report by The Verge cited sources suggesting the board had initially consented to resign and permit Altman and Brockman's return, but this agreement seems to have faltered.

The board missed a crucial 5 PM PT deadline, leading to the potential resignation of numerous OpenAI employees. Should Altman opt to depart and establish a new venture, it is anticipated that these employees would likely follow suit, the Verge report added.

Also Read: ‘Sam and I are shocked by what board did today’, says ex-OpenAI President Greg Brockman

Earlier Bloomberg cited sources saying that there is a possibility of Altman returning to the company. A potential scenario being contemplated involved the current OpenAI board members stepping down imminently, although no definitive decisions have been reached, multiple sources told the news agency.

Strong support for Altman

Microsoft CEO Satya Nadella has communicated with Altman, assuring him of support in his future endeavors. Sources familiar with the situation disclosed to Bloomberg that Nadella was caught off guard by the board’s decision.

The OpenAI board has faced significant backlash following the abrupt removal of Altman, surprising both investors and Altman himself. Notably, several individuals, including co-founder Greg Brockman, have left the company in protest. Sources suggest further resignations might follow suit, the report added.

Also Read: Who is on the OpenAI Board that fired Sam Altman? Take a look

If Altman does make a return, there’s speculation that he might seek alterations in the company's governance. Conversely, in the event of his non-return, Altman has been contemplating the launch of a new venture, potentially involving former OpenAI staff, Bloomberg's sources added.

What happened?

Mira Murati, who previously worked behind the scenes at ChatGPT-maker OpenAI as chief technology officer (CTO), has been appointed as the company's interim CEO with immediate effect as the company seeks a permanent replacement.

Murati's appointment comes after OpenAI in a recent statement announced the departure of co-founder and CEO, Sam Altman.

Also Read: What OpenAI's new CEO Mira Murati thinks about AI, ChatGPT & more

The company said an internal review highlighted Altman's lack of consistent transparency in communications with the board of directors. Consequently, the board lost confidence in his ability to lead OpenAI effectively.

Following the announcement, Altman expressed gratitude for his time at OpenAI, acknowledging its transformative impact on both himself and potentially the world. He hinted at more information about his future plans to come.

“I loved my time at OpenAI. it was transformative for me personally, and hopefully the world a little bit. Most of all I loved working with such talented people. will have more to say about what’s next later," Altman wrote on X.

Also Read: ‘Sam Altman is a hero…’: Eric Schmidt, Brian Chesky, other leaders praise Altman's contribution to AI

Meanwhile, co-founder and President, Greg Brockman, also announced his departure from the company. Brockman, in a message on X, expressed pride in the accomplishments achieved.

"I’m super proud of what we’ve all built together since starting in my apartment 8 years ago. We’ve been through tough & great times together, accomplishing so much despite all the reasons it should have been impossible. But based on today’s news, I quit." he wrote.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.