OpenAI CEO Sam Altman Rejoins Board After Investigation On Firing

(RTTNews) - OpenAI Chief executive Officer Sam Altman is rejoining its Board of Directors after an independent Special Committee investigation on his last year's firing found that his conduct did not mandate removal.

The developer of highly popular generative AI chatbot ChatGPT further announced three new members to the Board, including Sue Desmond-Hellmann, former CEO of the Bill and Melinda Gates Foundation, Nicole Seligman, former EVP and General Counsel at Sony Corp. and Fidji Simo, CEO and Chair of Instacart.

Altman in November last year was ousted from the Board and as CEO of the artificial intelligence startup he co-founded saying that the CEO was not consistently candid in his communications. After Altman's exit, OpenAI's President and co-founder Greg Brockman also left the company in protest.

Following this, majority of OpenAI employees also threatened to quit if Altman was not reinstated.

Satya Nadella, CEO of Microsoft Corp., OpenAI's largest investor, then had informed that he was not given any explanation. Nadella also said then that Altman and Brockman, together with colleagues, would be joining the tech major to lead its new advanced AI research team.

However, after few days, Altman was reinstated to the company chief role.

Following these incidents, a Special Committee of the OpenAI Board conducted a review of the events concerning the removal of Altman and Brockman from the OpenAI Board and Altman's termination as CEO. The review included interviews with OpenAI's prior Board members and OpenAI executives and employees, among others.

The investigation found that there was a breakdown in trust between the prior Board and Altman that precipitated the events of November 17. It was also found that the prior Board's decision did not arise out of concerns regarding product safety or security, the pace of development, OpenAI's finances, or its statements to investors, customers, or business partners. Instead, it was a consequence of a breakdown in the relationship and loss of trust between the prior Board and Altman.

WilmerHale, which conducted the investigation, found the prior Board implemented its decision on an abridged timeframe, without advance notice to key stakeholders, and without a full inquiry or an opportunity for Altman to address the prior Board's concerns.

WilmerHale found that the prior Board acted within its broad discretion to terminate Altman, but also found that his conduct did not mandate removal.

With the conclusion of the review and following the recommendation of the Special Committee, the Board now expressed its full confidence in Altman and Brockman's ongoing leadership of OpenAI and to endorse the November 21 decision to rehire Altman and Brockman.

Bret Taylor, Chair of the OpenAI Board, said, "We have unanimously concluded that Sam and Greg are the right leaders for OpenAI."

The Board already includes members Adam D'Angelo, Larry Summers and Taylor, who were appointed in November last year.

Taylor added that the expanded board will prioritize its crucial work to enhance the governance procedures to best achieve OpenAI's mission. "We recognize the magnitude of our role in stewarding transformative technologies for the global good," he said.

The latest news comes as billionaire Elon Musk, who was the founding member of OpenAI, has filed a lawsuit against OpenAI and Altman alleging that the firm is developing AI for profitability instead of its foundational mission of utilizing it for the benefit of humankind.

OpenAI responded to Musk's lawsuit by publishing the latter's emails acknowledging that it needs to raise a ton of money to fulfil its AI missions. As per the published emails, Musk argued with OpenAI executives to find different sources of revenue in order to be a successful generative AI platform.