Turmoil at OpenAI: what’s next for the creator of ChatGPT?

The world’s hottest generative AI company went through three CEOs in under a week and ended up with the same one it had at the start — so what happened, and what’s next?

On November 17th, 2023, OpenAI’s board abruptly announced that effective immediately, co-founder and CEO Sam Altman was out. The shake-up came just shy of one year after the launch of ChatGPT, which quickly became one of the fastest-growing apps in history and initiated an industry-wide race to build generative AI tools.

The CEO job shuffled between CTO Mira Murati and former Twitch boss Emmett Shear and hundreds of OpenAI employees signed a letter saying they would leave for jobs at Microsoft unless the board reinstated Altman. In the end, Altman returned along with president Greg Brockman in a deal that came with a new set of board members, including one representing OpenAI’s biggest investor, Microsoft.

Everyone was happy, with the notable exception of former OpenAI co-founder Elon Musk. Musk filed a lawsuit against OpenAI, claiming it breached a contract that doesn’t exist, and saying that the pursuit of profit has led the company to abandon its founding mission to develop artificial general intelligence technology (AGI) that will benefit humanity.

All of the news and updates about OpenAI continue below.

Highlights

  • An image of Elon Musk on a background with a repeating pattern of folded dollar bills

    a:hover]:text-gray-63 [&>a:hover]:shadow-underline-black dark:[&>a:hover]:text-gray-bd dark:[&>a:hover]:shadow-underline-gray [&>a]:shadow-underline-gray-63 dark:[&>a]:text-gray-bd dark:[&>a]:shadow-underline-gray”>Illustration by Kristen Radtke / The Verge; Getty Images

    OpenAI has responded to Elon Musk’s lawsuit by saying that he at one point wanted “absolute control” of the company by merging it with Tesla.

    In a blog post published on Tuesday, OpenAI said it will move to dismiss “all of Elon’s claims” and offered its own counter-narrative to his account of the company abandoning its original mission as a nonprofit.

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  • An image of Elon Musk on a blue illustrated background.

    An image of Elon Musk on a blue illustrated background.

    a:hover]:text-gray-63 [&>a:hover]:shadow-underline-black dark:[&>a:hover]:text-gray-bd dark:[&>a:hover]:shadow-underline-gray [&>a]:shadow-underline-gray-63 dark:[&>a]:text-gray-bd dark:[&>a]:shadow-underline-gray”>Illustration: Kristen Radtke / The Verge; Image: Getty Images

    Elon Musk sued OpenAI today, alleging a wide range of incendiary things, including that GPT-4 is actually an artificial general intelligence. It’s a fun complaint to read; it fundamentally accuses OpenAI and its CEO, Sam Altman, of pretending to run a nonprofit designed to benefit humanity while actually running a regular ol’ tech company and trying to make a lot of money. That’s a pretty good criticism of the entire OpenAI situation, actually! Someone with some intellectual honesty and a competent lawyer should run at that sometime.

    Sadly, Musk is not that person, and his lawyers have figured out that letting the world’s richest man rack up billable hours filing nonsensical lawsuits is more lucrative than fitting the “facts” to the “law,” or whatever it is regular lawyers do.

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  • Elon Musk on a blue background

    Elon Musk on a blue background

    a:hover]:text-gray-63 [&>a:hover]:shadow-underline-black dark:[&>a:hover]:text-gray-bd dark:[&>a:hover]:shadow-underline-gray [&>a]:shadow-underline-gray-63 dark:[&>a]:text-gray-bd dark:[&>a]:shadow-underline-gray”>Illustration by Laura Normand / The Verge

    Elon Musk is suing OpenAI and its CEO, Sam Altman, over claims that the pursuit of profit has led the company to abandon its founding mission to develop artificial intelligence technology that will benefit humanity. In a lawsuit filed with a San Francisco court on Thursday, Musk alleges that OpenAI’s partnership with Microsoft has transformed the organization “into a closed-source de facto subsidiary” of Microsoft that’s focused on maximizing profits.

    According to the lawsuit, such actions constitute a breach of the founding agreement between Musk — who co-founded OpenAI in 2015 but no longer retains a stake in the company — Altman, and OpenAI president Greg Brockman, who committed to making the project a nonprofit and its technology open source. These violations include keeping the design of OpenAI’s GPT-4 model a “complete secret,” with the suit claiming this decision was “primarily driven by commercial considerations, not safety” and that the GPT-4 model is now “a de facto Microsoft proprietary algorithm.” OpenAI declined to comment on the suit.

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  • The latest rumor about Sam Altman’s AI chip-building dream could require up to $7 trillion.

    For context, here’s how the Wall Street Journal describes OpenAI’s once-again leader’s trillion dollar effort to “reshape the global semiconductor industry:”

    Such a sum of investment would dwarf the current size of the global semiconductor industry. Global sales of chips were $527 billion last year and are expected to rise to $1 trillion annually by 2030.

    The money is needed to fuel AI’s growth and solve the scarcity of expensive AI chips required to train the large language models that underpin systems like ChatGPT. According to the WSJ, Altman is pitching a chip-making partnership to investors from the UAE, SoftBank CEO Masayoshi Son (again), and TSMC.

  • Microsoft’s observer has reportedly joined the OpenAI board.

    Remember the November upheaval at OpenAI, with Sam Altman fired and rehired as CEO? After all that, new board chair Bret Taylor said the ChatGPT company would “build a qualified, diverse Board of exceptional individuals” that included a nonvoting observer from Microsoft, which is OpenAI’s biggest financial backer.

    Now Bloomberg reports that person is Microsoft vp Dee Templeton, who has been there for 25 years and leads a team responsible for managing its relationship with OpenAI.

    Two hours ago
  • A peek inside the black box that is OpenAI’s finances.

    OpenAI’s nonprofit parent company — the one with the board that suddenly fired Sam Altman last month — has its finances made public each year by the government. The numbers for 2022 were recently published by the IRS, and you can view the filing below.

    Unfortunately, it doesn’t say much, given that it excludes the financials for OpenAI’s commercial entity that makes ChatGPT. What the filing does show is that Altman was paid $73,546 in 2022. Co-founders Greg Brockman and Ilya Sutskever were paid $113,727 and $334,572, respectively. What about the three board members who voted to fire Altman alongside Sutskever? They were paid nothing.

  • Not a flattering portrayal of Sam Altman.

    A new report from The Washington Post says that senior OpenAI staffers had indicated to the board Altman had been “psychologically abusive.” The board had also worried that it couldn’t keep Altman accountable.

    All of that contributed to Altman’s firing, the report says — though, as we now know, Altman ultimately came out on top.

  • OpenAI is low on Toner.

    Helen Toner, one of the board members who fired Sam Altman and then ousted herself when Altman returned, has given an interview to The Wall Street Journal. She is unable to give a specific reason for Altman’s firing beyond “Our goal in firing Sam was to strengthen OpenAI and make it more able to achieve its mission.”

    Listen, babe, I am fully happy to hear you out, but if being full of shit is a firing offense for CEOs, everyone in the Fortune 500 would be looking for a new job.

  • A rendition of OpenAI’s logo, which looks like a stylized whirlpool.

    A rendition of OpenAI’s logo, which looks like a stylized whirlpool.

    a:hover]:text-gray-63 [&>a:hover]:shadow-underline-black dark:[&>a:hover]:text-gray-bd dark:[&>a:hover]:shadow-underline-gray [&>a]:shadow-underline-gray-63 dark:[&>a]:text-gray-bd dark:[&>a]:shadow-underline-gray”>Illustration: The Verge

    We still don’t know the whole story around the conflict between OpenAI CEO Sam Altman and the company’s board, but more and more is leaking out. A new report, from The New Yorker, alleges that OpenAI’s old board deliberately excluded Microsoft after initially voting to expel Sam Altman as CEO, and they actually believed the company would back them.

    In the sprawling story, New Yorker reported Microsoft executives were blindsided by the decision to oust Sam Altman, possibly to prevent Microsoft CEO Satya Nadella from warning Altman what was about to happen. 

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  • Sam Altman onstage at OpenAI DevDay.

    Sam Altman onstage at OpenAI DevDay.

    a:hover]:text-gray-63 [&>a:hover]:shadow-underline-black dark:[&>a:hover]:text-gray-bd dark:[&>a:hover]:shadow-underline-gray [&>a]:shadow-underline-gray-63 dark:[&>a]:text-gray-bd dark:[&>a]:shadow-underline-gray”>Image: OpenAI

    OpenAI’s GPT store will be delayed until next year, the company said in an email to people who signed up for its GPT Builder. 

    In the email, OpenAI said that “unexpected things have been keeping us busy,” pushing back the GPT store’s rollout. The company said it had planned to release the store in December, which itself is slightly later than originally promised; at its developer conference in November, OpenAI said the store would launch later that month.

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  • OpenAI Holds Its First Developer Conference

    OpenAI Holds Its First Developer Conference

    a:hover]:text-black [&>a:hover]:shadow-underline-black dark:[&>a:hover]:text-gray-e9 dark:[&>a:hover]:shadow-underline-gray-63 [&>a]:shadow-underline-gray-13 dark:[&>a]:shadow-underline-gray-63″>Sam Altman.

    When OpenAI’s board asked Sam Altman to return a day after they fired him, he initially felt defiant, hurt, and angry.

    “It took me a few minutes to snap out of it and get over the ego and emotions to then be like, ‘Yeah, of course I want to do that,’” he told me by phone on Wednesday. “Obviously, I really loved the company and had poured my life force into this for the last four and a half years full time, but really longer than that with most of my time. And we’re making such great progress on the mission that I care so much about, the mission of safe and beneficial AGI.”

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  • Sam Altman at OpenAI’s developer conference.

    Sam Altman at OpenAI’s developer conference.

    a:hover]:text-black [&>a:hover]:shadow-underline-black dark:[&>a:hover]:text-gray-e9 dark:[&>a:hover]:shadow-underline-gray-63 [&>a]:shadow-underline-gray-13 dark:[&>a]:shadow-underline-gray-63″>Sam Altman.

    Sam Altman is officially OpenAI’s CEO again.

    Just before Thanksgiving, the company said it had reached a deal in principle for him to return, and now it’s done. Microsoft is getting a non-voting observer seat on the nonprofit board that controls OpenAI as well, the company announced on Wednesday.

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  • A photo of Adam D’Angelo.

    A photo of Adam D’Angelo.

    a:hover]:text-black [&>a:hover]:shadow-underline-black dark:[&>a:hover]:text-gray-e9 dark:[&>a:hover]:shadow-underline-gray-63 [&>a]:shadow-underline-gray-13 dark:[&>a]:shadow-underline-gray-63″>OpenAI’s Adam D’Angelo.
    a:hover]:text-gray-63 [&>a:hover]:shadow-underline-black dark:[&>a:hover]:text-gray-bd dark:[&>a:hover]:shadow-underline-gray [&>a]:shadow-underline-gray-63 dark:[&>a]:text-gray-bd dark:[&>a]:shadow-underline-gray”>Illustration by William Joel / The Verge, Photo: Quora

    Earlier this year, I ran into Adam D’Angelo at an AI conference in San Francisco’s “Cerebral Valley” neighborhood

    He was there to talk about Poe, the AI bot platform that is his pet project as the CEO of Quora. But I was more interested in his role as a board member of OpenAI, which had just lost two other directors in a matter of a few weeks: Reid Hoffman and Shivon Zilis. Was the board actively looking to fill their spots? I cornered D’Angelo in the halls of the conference venue to ask. He said yes and declined to elaborate. 

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  • A troll worthy of Clippy themself.

    This Wall Street Journal article about the recent drama at OpenAI contains an amazing anecdote. Apparently an employee at AI rival Anthropic thought it’d be funny to send “thousands of paper clips in the shape of OpenAI’s logo” as a prank, in reference to the infamous paperclip maximizer thought experiment.

    Weirdly, I think OpenAI’s logo makes for a great paperclip design. Should we be worried?

  • A recent OpenAI breakthrough on the path to AGI has caused a stir.

    Reports from Reuters and The Information Wednesday night detail an OpenAI model called Q* (pronounced Q Star) that was recently demonstrated internally and is capable of solving simple math problems. Doing grade school math may not seem impressive, but the reports note that, according to the researchers involved, it could be a step toward creating artificial general intelligence (AGI).

    After the publishing of the Reuters report, which said senior exec Mira Murati told employees that a letter about Q* “precipitated the board’s actions” to fire Sam Altman last week, OpenAI spokesperson Lindsey Held Bolton refuted that notion in a statement shared with The Verge: “Mira told employees what the media reports were about but she did not comment on the accuracy of the information.”

    Separately, a person familiar with the matter told The Verge that the board never received a letter about such a breakthrough and that the company’s research progress didn’t play a role in Altman’s sudden firing.

    The drama continues!

    Two hours ago
  • OpenAI - Microsoft

    OpenAI - Microsoft

    a:hover]:text-gray-63 [&>a:hover]:shadow-underline-black dark:[&>a:hover]:text-gray-bd dark:[&>a:hover]:shadow-underline-gray [&>a]:shadow-underline-gray-63 dark:[&>a]:text-gray-bd dark:[&>a]:shadow-underline-gray”>Photo by Berke Bayur/Anadolu via Getty Images

    In the early hours of Wednesday morning, OpenAI announced that Sam Altman is returning as CEO, following a shock firing on Friday. Over the weekend, it looked like Altman and OpenAI co-founder Greg Brockman might end up at Microsoft, leading a new AI research lab. But after days of negotiation, that’s no longer the case and OpenAI has appointed a new board of directors and brought back Altman as CEO of the company.

    After a weekend of chaotic scenes, including hundreds of OpenAI employees threatening to quit and join Microsoft, things seem to be settling down. Microsoft CTO and EVP of AI Kevin Scott has now addressed Microsoft employees about the OpenAI turmoil. It’s the first company-wide communication to Microsoft employees about the situation, beyond CEO Satya Nadella’s announcement of Altman’s hiring not hiring on Sunday and the initial reaction to the news on Friday.

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  • OpenAI Holds Its First Developer Conference

    OpenAI Holds Its First Developer Conference

    a:hover]:text-black [&>a:hover]:shadow-underline-black dark:[&>a:hover]:text-gray-e9 dark:[&>a:hover]:shadow-underline-gray-63 [&>a]:shadow-underline-gray-13 dark:[&>a]:shadow-underline-gray-63″>Sam Altman speaks during the OpenAI DevDay event on November 6th, 2023.
    a:hover]:text-gray-63 [&>a:hover]:shadow-underline-black dark:[&>a:hover]:text-gray-bd dark:[&>a:hover]:shadow-underline-gray [&>a]:shadow-underline-gray-63 dark:[&>a]:text-gray-bd dark:[&>a]:shadow-underline-gray”>Photo by Justin Sullivan / Getty Images

    Sam Altman will return as CEO of OpenAI, overcoming an attempted boardroom coup that sent the company into chaos over the past several days. Former president Greg Brockman, who quit in protest of Altman’s firing, will return as well.

    The company said in a statement late Tuesday that it has an “agreement in principle” for Altman to return alongside a new board composed of Bret Taylor, Larry Summers, and Adam D’Angelo. D’Angelo is a holdover from the previous board that initially fired Altman on Friday. He remains on this new board to give the previous board some representation, we’re told.

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  • A rendition of OpenAI’s logo, which looks like a stylized whirlpool.

    A rendition of OpenAI’s logo, which looks like a stylized whirlpool.

    a:hover]:text-gray-63 [&>a:hover]:shadow-underline-black dark:[&>a:hover]:text-gray-bd dark:[&>a:hover]:shadow-underline-gray [&>a]:shadow-underline-gray-63 dark:[&>a]:text-gray-bd dark:[&>a]:shadow-underline-gray”>Illustration: The Verge

    ChatGPT’s voice feature is now available to all users for free. In a post on X (formerly Twitter), OpenAI announced users can now tap the headphones icon to use their voice to talk with ChatGPT in the mobile app, as well as get an audible response.

    OpenAI first rolled out the ability to prompt ChatGPT with your voice and images in September, but it only made the feature available to paying users.

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  • The negotiations to bring Sam Altman back to OpenAI slowly continue.

    Here’s a brief update on where things stand with OpenAI today, after an explosive weekend and a very confusing Monday which saw the news of Sam Altman going to Microsoft slowly fade into Satya Nadella not seeming so sure that would happen.

    — We’re told Altman still wants to return to OpenAI and continues to negotiate with the board today.

    — As Bloomberg reported late last night, new interim CEO Emmett Shear is involved in mediating these negotiations, creating the frankly unprecedented situation where (1) the interim CEO who replaced (2) the interim CEO who replaced Sam and who (3) got replaced for trying to get Sam back is now (4) deeply involved in a new effort to get Sam back. Read it through a few times, it’s fine. It doesn’t make any sense to anyone else either.

    — Microsoft’s offer to hire everyone who threatened to quit is still on the table, and has now been made officially public, after being noted in the employee walkout letter yesterday. In general, Microsoft appears to have receded from the situation; Nadella remains in the mix but has now made several media appearances reiterating that he’ll will work with Altman and OpenAI “irrespective of configuration,” which frankly sounds like he’s talking about the benefits of plug and play device drivers in Windows. We all fall back to what we know.

    — We are told everyone, including the board, is trying to be reasonable, and put OpenAI back together.

    We’ll keep posting updates as we have them; at the very least we can say the overall temperature has dropped, but it’s not clear any of this results in an actual return.

  • Microsoft offers to match OpenAI compensation.

    Microsoft CTO and EVP of AI Kevin Scott says the software maker will match OpenAI’s compensation to employees that want to join Sam Atlman’s new AI research lab. It comes shortly after Microsoft CEO Satya Nadella went on a media tour last night and didn’t seem to know if Sam Altman will actually join Microsoft or not. Competitors like Salesforce have been trying to tempt OpenAI employees to join rival AI projects.

  • A few more updates about OpenAI.

    As hundreds of employees threaten to quit unless Sam Altman’s firing is rolled back:

    The Information reports that before interim CEO Emmett Shear took the job, OpenAI’s remaining board members offered it to two others: former GitHub CEO Nat Friedman and Scale AI CEO Alex Wang. Both turned it down. (Update: And in another report, it says board members also pursued the CEO of its competitor Anthropic, Dario Amodei, and proposed a merger between the two companies.)

    From Business Insider there’s a report Ilya Sutskever gave employees two explanations for Altman’s firing: that he gave two people the same project and that he allegedly gave two board members different opinions about a member of personnel.

    Finally, the Wall Street Journal writes that Sutskever, one of the board members who voted to fire Altman, switched to asking for Altman’s return “after an emotionally charged conversation with Anna Brockman, Greg Brockman’s wife” and notes he officiated their civil ceremony at OpenAI’s offices in 2019.

  • OpenAI Holds Its First Developer Conference

    OpenAI Holds Its First Developer Conference

    a:hover]:text-black [&>a:hover]:shadow-underline-black dark:[&>a:hover]:text-gray-e9 dark:[&>a:hover]:shadow-underline-gray-63 [&>a]:shadow-underline-gray-13 dark:[&>a]:shadow-underline-gray-63″>Microsoft CEO Satya Nadella on stage at OpenAI’s first developer conference.
    a:hover]:text-gray-63 [&>a:hover]:shadow-underline-black dark:[&>a:hover]:text-gray-bd dark:[&>a:hover]:shadow-underline-gray [&>a]:shadow-underline-gray-63 dark:[&>a]:text-gray-bd dark:[&>a]:shadow-underline-gray”>Image: Getty

    Microsoft CEO Satya Nadella announced late last night that former OpenAI CEO Sam Altman and OpenAI co-founder Greg Brockman were both joining Microsoft to lead a new advanced AI research team, an announcement that sent Microsoft’s stock price soaring. Now, less than 24 hours later, following The Verge reporting that Sam Altman is still trying to return as OpenAI CEO, Nadella doesn’t seem so sure.

    “[We’re] committed to OpenAI and Sam, irrespective of what configuration,” said Nadella in an interview with CNBC’s Jon Fortt, adding that Microsoft “chose to explicitly partner with OpenAI [and] obviously that depends on the people at OpenAI staying there or coming to Microsoft, so I’m open to both options.” Nadella added that “obviously we want Sam and Greg to have a fantastic home if they’re not going to be [at] OpenAI, with all the colleagues at Microsoft, but I’m exactly where I was on Friday morning.”

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This post was originally published on The Verge

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