The power-struggle roller coaster for leadership in the AI race
Kara Swisher, an American journalist and a legendary Silicon Valley tech reporter, dug into the situation and reported on what she heard from within the company while providing her own insights via a series of threads on X (formerly Twitter):
Theory #1 – Coup chronicles or the pursuit of money against common sense
Sources tell me that the profit direction of the company under Altman and the speed of development, which could be seen as too risky, and the nonprofit side dedicated to more safety and caution were at odds. One person on the Sam side called it a “coup,” while another said it was the right move. This seems more plausible, but the tech community is also rife with rumors of all kinds, some really out there. A lot of questionable incomings, for sure.
— Kara Swisher
Theory #2 – The Sutskever factor: A conflict that reached a climax
Sources tell me chief scientist Ilya Sutskever was at the center of this. Increasing tensions with Sam Altman and Greg Brockman over role and influence and he got the board on his side. [...] The developer day and how the store was introduced was in inflection moment of Altman pushing too far, too fast. My bet: He’ll have a new company up by Monday.
— Kara Swisher
Theory #3 – Altman unmasked: The board confrontation over the CEO’s alleged manipulation and unyielding behavior
The board members who voted against Altman felt he was manipulative and headstrong and wanted to do what he wanted to do. That sounds like a typical Silicon Valley CEO to me, but this might not be a typical Silicon Valley company. They certainly have a lot of explaining to do. Would be eager to hear actual specifics of their concerns and also evidence that they tried to inform him if they had problems and gave him a chance to respond and change. If not, it looks cloddish.
— Kara Swisher
Regarding Sutskever’s role and reports that Altman has been exploring outside business endeavors for some time, The Verge’s Alex Heath seems to have heard a similar story:
Like Kara Swisher, I’ve heard that Sutskever, who leads the OpenAI’s research team – and not the applied side of the house that brings products to market – was instrumental in the ousting of Altman and that this all went down very recently. [...] Altman was recently talking to Jony Ive about doing something in AI and consumer hardware, though no company has been formed [...] Logic says that, ultimately, this was a battle over two warring factions. Sutskever, who has been steadily beating the drum about the dangers of superintelligent AI, seems to have won.
— The Verge
In this respect, the Wall Street Journal reported that Sutskever was the person who told Altman that he’d been fired.
An immediate response – how did it all end?
Despite everything, Altman and Brockman were willing to return to OpenAI if the remaining board members who axed Altman stepped down:
The promised mass exodus of virtually every OpenAI employee — including board member and chief scientist Ilya Sutskever, who led the initial move to depose Altman! — means that there is more pressure on the board than ever, with only two of the three remaining members needing to flip. Altman posted on X that “we are all going to work together some way or other,” which we are told is meant to indicate that the fight continues. [...] Altman, former president Brockman, and the company’s investors are still trying to find a graceful exit for the board, say multiple sources with direct knowledge of the situation. The sources characterized the hiring announcement by Microsoft, which needed to have a resolution to the crisis before the stock market opened on Monday, as a ‘holding pattern.’
— The Verge
Altman — backed by leading shareholders in OpenAI, including Microsoft and Thrive Capital — wanted the entire board replaced as a condition for his return and had already started making plans to start a new company with other newly departed OpenAI employees.
Nevertheless, soon after Altman was fired, OpenAI investors launched an effort to get Altman reinstated, and the board began talking to Altman about bringing him back, even though he was reportedly “ambivalent” about returning and demanded significant governance changes should he return.
The threat of a mass exodus by OpenAI employees, including Sutskever, applied immense pressure for a complete board overhaul. This tug-of-war between the departing employees and the remaining board members ultimately led to Altman’s reinstatement.
