In 2015, OpenAI was set up as no-profit company with an objective of building safe AI. In 2018, it became a ‘capped profit’ company called OpenAI LP so as to bring compute power and capital backing. There was imbalance in this formation — a non profit Board was set up to keep the company on track — keep benefit of mankind above the commercial motives.
Sam Altman was a successful CEO of OpenAI. He was terminated by this Board. Surprisingly, he comes back in just five days as CEO again. On his return, he becomes more powerful.
The reasoning for his termination-not so candid termination — not so candid communication with the Board, disregard for the safety issues or some internal politics did not sound sensible enough to keep him out.
There are other founder CEOs — Facebook’s Zuckerberg — who holds a substantial stake in the company. However, Altman is not a shareholder in OpenAI. He has won on the basis of his charisma and smartness. The manpower stood firmly behind him — X witnessed a wave of emojis through the weekend to express the solidarity of the staff of OpenAI with Altman. It also expressed the outrage of the manpower.
Any organization is what its people are, and the manpower felt strongly that OpenAI is nothing without its people. They wrote a letter addressed to the Board asking for Altman’s reinstatement, or else they would quit.
Microsoft extended support to the ousted CEO and president at lightning speed. In the process, Microsoft shares shot upwards.
Altman-like CEOs come ‘once in a generation’, and they exhibit a missionary spirit rather than a mercenary one. He is a good communicator at the same time. He is incredibly curious about things. He has set a higher objective before the manpower — achieving AGI. He provides the suitable environment in the organization to goad the manpower towards this objective. They do their work diligently. They are there for a mission.
The launch of ChatGPT in late November, 2022 was transformative step. The manpower now can ‘do and die’ for him. They are all praise for him.
OpenAI has been valued at almost $90 billion, and employees cannot be denied the big cash their stock option could bring them. Can such a lucrative deal in future be frustrated? The manpower in fact was acting in its own interest.
The Board that outsted Altman has been abolished by and large. Ilaya, the chief scientist, was full of regret for being a party to the episode. Ilaya was into research. His difference with Altman pertained to the direction the company is taking — ethical AI should be a priority rather than crass commercialization. As it is AI as a technology is coming of age, and it is working. This could have driven the wedge between the two.
On his return, Altman expressed his love for OpenAI and OpenAI too reciprocated loud and clear.