The world’s hottest 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 nonprofit board abruptly announced that 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.
Over a period of just a few days, the CEO job shuffled between CTO Mira Murati and former Twitch boss Emmett Shear. Meanwhile, hundreds of OpenAI employees said they would leave for jobs at Microsoft, OpenAI’s lead investor, unless the board reinstated Altman. In the end, Altman returned, along with co-founder Greg Brockman and a revamped board of directors.
On March 8th, after an independent investigation into his sudden firing, OpenAI reinstated Altman as a member of the board, along with three other additions.
That same month, OpenAI co-founder Elon Musk filed a lawsuit against OpenAI, claiming that the company’s pursuit of profit has led it to abandon its founding nonprofit mission to develop artificial general intelligence technology (AGI) that will benefit humanity.
All of the news and updates about OpenAI continue below.
Highlights
Aug 30
OpenAI searches for an answer to its copyright problems
The huge leaps in OpenAI’s GPT model probably came from sucking down the entire written web. That includes entire archives of major publishers such as Axel Springer, Condé Nast, and The Associated Press — without their permission. But for some reason, OpenAI has announced deals with many of these conglomerates anyway.
Read Article >At first glance, this doesn’t entirely make sense. Why would OpenAI pay for something it already had? And why would publishers, some of whom are lawsuit-style angry about their work being stolen, agree?
Aug 29
ChatGPT’s weekly users have doubled in less than a year
OpenAI says that more than 200 million people use ChatGPT each week, as first reported by Axios. OpenAI spokesperson Taya Christianson confirmed the number to The Verge, which is now double the 100 million weekly active users OpenAI reported last November.
Read Article >Additionally, Christianson says that 92 percent of Fortune 500 companies are using OpenAI’s products, while API usage has doubled following the release of the company’s cheaper and smarter model GPT-4o Mini.
Aug 6
Another OpenAI co-founder departs.John Schulman is leaving to work on alignment at Anthropic, OpenAI’s chief rival. In a reply post on X, CEO Sam Altman thanked Schulman and said he “laid out a significant fraction of what became OpenAI’s initial strategy.”
In his new job, Schulman will work closely with Jan Leike, another senior leader who recently left OpenAI for Anthropic due to concerns that safety had taken a backseat to business priorities.
Aug 5
Elon Musk is suing OpenAI and Sam Altman again
Elon Musk has revived his complaint against OpenAI after dropping a previous lawsuit, again alleging that the ChatGPT maker and two of its founders — Sam Altman and Greg Brockman — breached the company’s founding mission to develop artificial intelligence technology to benefit humanity.
Read Article >The new lawsuit filed in federal court in Northern California on Monday says that Altman and Brockman “assiduously manipulated Musk into co-founding their spurious non-profit venture” by promising that OpenAI would be safer and more transparent than profit-driven alternatives. The suit claims that assurances about OpenAI’s nonprofit structure were “the hook for Altman’s long con.”
Aug 3
Microsoft now lists OpenAI as a competitor.CNBC spotted the update this week in Microsoft’s risk factors with the SEC. These are managed by lawyers to help shield companies from shareholders lawsuits and generally pretty conservative. Still, the change feels like a sign of how OpenAI and its largest investor are drifting apart.
Relatedly, I couldn’t help but notice the number of times Microsoft execs mentioned OpenAI during their earnings call this week: zero.
Jul 10
Microsoft and Apple ditch OpenAI board seats amid regulatory scrutiny
Microsoft has dropped its seat as an observer on the board of OpenAI, less than eight months after securing the non-voting seat. Apple was reportedly planning to join OpenAI’s nonprofit board, but now the Financial Times reports that Apple will no longer join the board.
Read Article >OpenAI confirmed that Microsoft has given up its seat in a statement to The Verge, following reports from Axios and the Financial Times that Microsoft’s deputy general counsel Keith Dolliver wrote a letter to OpenAI late on Tuesday.
Jul 2
Apple’s Phil Schiller is reportedly joining OpenAI’s board
Apple has chosen App Store chief and former marketing head Phil Schiller to represent the company on OpenAI’s nonprofit board, according to a report from Bloomberg. Schiller will reportedly get an observer role, meaning he can attend board meetings but can’t vote or act as a director.
Read Article >Joining the board will allow Schiller to learn more about the inner workings of OpenAI as Apple works to build ChatGPT into iOS and macOS later this year. The integration will allow the AI-supercharged Siri to punt more advanced queries to ChatGPT if users grant permission. As previously reported by Bloomberg, no money is currently involved in the partnership, though Apple is expected to get a percentage of ChatGPT subscriptions made through its platforms down the road.
Jun 13
Former head of NSA joins OpenAI board
OpenAI has appointed Paul M. Nakasone, a retired general of the US Army and a former head of the National Security Agency (NSA), to its board of directors, the company announced on Thursday.
Read Article >Nakasone, who was nominated to lead the NSA by former President Donald Trump, directed the agency from 2018 until February of this year. Before Nakasone left the NSA, he wrote an op-ed supporting the renewal of Section 702 of the Foreign Intelligence Surveillance Act, the surveillance program that was ultimately reauthorized by Congress in April.
Jun 12
OpenAI’s business is booming.The company is on track to make about $3.4 billion in revenue this year, which is about double what it brought in last year, according to a new report by The Information.
CEO Sam Altman reportedly told employees that $200 million of that revenue is the cut OpenAI gets from Microsoft selling its models through Azure. That means the vast majority of OpenAI’s revenue is coming from ChatGPT subscriptions and its own developer platform.
OpenAI’s Annualized Revenue Doubles to $3.4 Billion Since Late 2023[The Information]
Jun 11
Elon Musk drops lawsuit against OpenAI
Elon Musk has dropped his lawsuit against OpenAI and its CEO, Sam Altman, accusing the company of a breach of contract and allegedly abandoning its mission of creating AI technology to benefit humanity. As reported earlier by CNBC, the case was dismissed without prejudice, meaning Musk can file it again.
Read Article >Musk’s decision to withdraw the lawsuit, filed in a California state court in February (case number CGC24612746), comes just one day before a scheduled hearing where the judge would’ve reviewed OpenAI’s request to dismiss the case. It’s also one day after Musk said he would ban Apple devices at his companies if the company integrates OpenAI’s technology into the iPhone and Mac “at the OS level,” among other bizarre threats.
Jun 10
OpenAI adds two new executives.Kevin Weil, a Facebook product veteran, is joining in the newly-created role of chief product officer. Ex-Nextdoor CEO Sarah Friar is also joining as chief financial officer.
“Sarah and Kevin bring a depth of experience that will enable OpenAI to scale our operations, set a strategy for the next phase of growth, and ensure that our teams have the resources they need to continue to thrive,” CEO Sam Altman says.
May 29
Former OpenAI board member explains why they fired Sam Altman
On November 17th, 2023, OpenAI’s board shocked everyone by suddenly ousting co-founder and CEO Sam Altman.
Read Article >He had been overseeing one of the fastest-growing app launches in history with ChatGPT, so what happened? Former board member Helen Toner is filling in blank spaces in an interview on The TED AI Show podcast, providing her perspective on the events that caused board members to stop trusting Altman as well as how he eventually returned.
May 28
OpenAI has a new safety team — it’s run by Sam Altman
OpenAI is forming a new safety team, and it’s led by CEO Sam Altman, along with board members Adam D’Angelo and Nicole Seligman. The committee will make recommendations on “critical safety and security decisions for OpenAI projects and operations” — a concern several key AI researchers shared when leaving the company this month.
Read Article >For its first task, the new team will “evaluate and further develop OpenAI’s processes and safeguards.” It will then present its findings to OpenAI’s board, which all three of the safety team’s leaders have a seat on. The board will then decide how to implement the safety team’s recommendations.
May 18
OpenAI CEO Sam Altman on the company’s employee NDAs.Vox reported yesterday, following two high-profile departures, that OpenAI’s exit terms include revoking employees’ vested equity in the company if they ever disparage it or acknowledge the terms exist. OpenAI told the outlet it hadn’t revoked equity before, and wouldn’t in the future.
Those terms were real and “should never have been,” Altman posted today, adding that he’s “genuinely embarrassed” by them.
May 17
OpenAI researcher resigns, claiming safety has taken ‘a backseat to shiny products’
Jan Leike, a key OpenAI researcher who resigned earlier this week following the departure of co-founder Ilya Sutskever, posted on X Friday morning that “safety culture and processes have taken a backseat to shiny products” at the company.
Read Article >Leike’s statements came after Wired reported that OpenAI had disbanded the team dedicated to addressing long-term AI risks (called the “Superalignment team”) altogether. Leike had been running the Superalignment team, which formed last July to “solve the core technical challenges” in implementing safety protocols as OpenAI developed AI that can reason like a human.
May 14
Sean Hollister, Kylie Robison and 1 more
OpenAI chief scientist Ilya Sutskever is officially leaving
Ilya Sutskever, OpenAI’s co-founder and chief scientist who helped lead the infamous failed coup against Sam Altman and then later changed his mind, is officially leaving the company.
Read Article >Both Altman and Sutskever have posts announcing the news:
Mar 11
OpenAI says there is no “agreement at all” with Elon Musk.The company’s legal response to Musk’s lawsuit was just made public and, as we expected, OpenAI refutes the crux of Musk’s argument: that it violated a founding contract with him when it became a commercial entity.
From OpenAI’s court filing, which is really just an official version of its public response to Musk last week:
Were this case to proceed to discovery, the evidence would show that Musk supported a for-profit structure for OpenAI, to be controlled by Musk himself, and dropped the project when his wishes were not followed. Seeing the remarkable technological advances OpenAI has achieved, Musk now wants that success for himself.
Mar 8
Sam Altman rejoins OpenAI’s board after investigation into sudden firing
An independent investigation commissioned by OpenAI’s nonprofit board has found that CEO Sam Altman’s conduct “did not mandate removal.” After surviving an attempted boardroom coup in November, he will now rejoin the board.
Read Article >In a press release, board chair Bret Taylor said the law firm WilmerHale interviewed board members, employees, and reviewed “more than 30,000 documents” to reach the conclusion that Altman and co-founder Greg Brockman “are the right leaders for OpenAI.”
Mar 6
OpenAI says Elon Musk wanted ‘absolute control’ of the company
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.
Read Article >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.
Mar 1
Elon Musk’s legal case against OpenAI is hilariously bad
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.
Read Article >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.
Mar 1
Elon Musk sues OpenAI for abandoning its mission to benefit humanity
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.
Read Article >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.
Feb 9
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.
Jan 5
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.
Dec 12, 2023
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.
Dec 9, 2023
“The destruction of the company could be consistent with the board’s mission.”The New York Times published a look at OpenAI’s firing and rehiring of CEO Sam Altman. The moment-by-moment rundown doesn’t dig into the claims of Altman being “psychologically abusive” from yesterday’s Washington Post story.
Remember, this all started less than a month ago.