The company’s largest investors are putting pressure on it
When the news of former OpenAI CEO Sam Altman’s abrupt departure from the company became public, things quickly became chaotic. You can read our original post here.
According to people familiar with the situation, OpenAI’s largest investors are pressing the company to reinstate Sam Altman as CEO following the board’s shocking decision to fire him on Friday.
Microsoft Corp., the startup’s largest backer with a more than $10 billion stake, is working with investors such as Thrive Capital and Tiger Global Management to bring Altman back, according to the people, who asked to remain anonymous because they were discussing private information.
According to the sources, investors are also pushing for the replacement of the current board as part of the effort to reinstate the CEO. According to the sources, the directors have considered stepping down, but are currently opposed to the idea. The situation is fluid, and no final plans have been made. If the board resigns, investors will look over a list of potential new directors. Bret Taylor, the former co-CEO of Salesforce Inc., is one possible candidate.
The OpenAI board has faced harsh criticism for its decision to remove Altman, which surprised both investors and Altman himself. He worked hard over the years to transform the company from a nonprofit to a commercially successful business, and he was the driving force behind new tools that have revolutionized the way people complete tasks ranging from homework to coding. His dismissal did not sit well with the companies that backed OpenAI.
Thrive, which was expected to lead a tender offer for employee shares, has yet to wire the funds and has informed OpenAI that Altman’s departure will have an impact on its actions. Thrive, the largest OpenAI investor other than Microsoft is working to rehire both Altman and Greg Brockman, the startup’s president who resigned in protest on Friday.
According to some of the sources, Altman is willing to return to the company. They did say that if he returned, he would demand changes in the way the company is run.
According to the sources, Microsoft CEO Satya Nadella has spoken with Altman and has pledged to support him in whatever steps he takes next. According to people familiar with the situation, Nadella was taken aback by the board’s decision.
Representatives from OpenAI in San Francisco and Microsoft in Redmond, Washington declined to comment. Thrive and Tiger Global did not respond to requests for comment. Taylor did not respond to an interview request.
Following Altman’s dismissal, several employees, including OpenAI co-founder Brockman, have left the company in protest. According to the sources, the resignations are likely to continue.
According to the Information, OpenAI is optimistic about rehiring Altman, Brockman, and other key employees who left, citing a staff memo from Chief Strategy Officer Jason Kwon on Saturday night. Kwon stated that company executives would be able to provide an update to employees by mid-morning on Sunday.
According to several sources, if Altman does not return, he is considering launching a new venture, possibly with former OpenAI employees. Vinod Khosla, a venture capitalist, said on X, that his firm wanted Altman “back at OpenAI but will back him in whatever he does next.”
The Verge and Forbes previously reported on the Altman re-election campaign.
In a Saturday memo to OpenAI employees, Chief Operating Officer Brad Lightcap stated that Altman’s dismissal “was not made in response to malfeasance” or the company’s financial or safety practices.
According to the memo, which was obtained by Bloomberg, the decision to force Altman out “took us all by surprise,” and he has since spoken with the board to better understand its decision. Lightcap wrote, “This was a breakdown in communication between Sam and the board,” adding that Microsoft “remains fully committed” as an investor.