NEWS   TOP   TAGS   TODAY   ARCHIVE   EN   ES   RU   FR 
NEWS / 2023 / 11 / 22 / UNCONVENTIONAL NONPROFIT STRUCTURE LEADS TO DRAMATIC CEO OUSTER AT OPENAI

Unconventional nonprofit structure leads to dramatic CEO ouster at OpenAI

02:29 22.11.2023

In a shocking turn of events, CEO Sam Altman of OpenAI, one of the world's most renowned AI companies, was ousted by four board members on Friday. OpenAI, originally established as a nonprofit organization, has since transitioned to a for-profit model but still operates under the control of the nonprofit OpenAI Inc. and its board of directors. This unique structure allowed the board members, including the company's chief scientist, two outside tech entrepreneurs, and an academic, to remove Altman from his position.

The sudden removal of Altman, a sought-after AI expert, has sparked an employee revolt within the organization, putting its future in jeopardy. This incident has shed light on the unusual arrangement that sets OpenAI apart from other tech enterprises. Unlike major tech companies like Google and Facebook, which give founders ultimate control over the company and its board of directors, OpenAI's structure prioritizes alignment and aims to avoid being beholden to commercial interests.

OpenAI's mission is to build artificial intelligence that is "generally smarter than humans" while ensuring safety. However, debates have arisen regarding whether this goal conflicts with the company's growing commercial success. The recent firing of Altman has exposed the underlying tensions within the board and the organization itself.

The board has not provided specific reasons for Altman's termination, leading to speculation and unrest among employees. Altman has swiftly found a new position at Microsoft, which has invested billions in OpenAI. Microsoft has also extended job offers to all 770 OpenAI employees, further jeopardizing the organization's future. If enough employees accept Microsoft's offer or join rival companies, OpenAI may cease to exist as it currently does, with much of its existing technology transferring to Microsoft under an exclusive license.

OpenAI's announcement of Altman's removal cited his lack of consistency in communication with the board, hindering their confidence in his leadership. However, the statement did not elaborate on specific instances or examples of Altman's alleged lack of candor. Sarah Kreps, director of Cornell University's Tech Policy Institute, believes the board's firing of Altman was a disservice to the organization and has alienated the majority of its workforce. Kreps suggests that the board's actions may have effectively dismantled the company's pro-safety philosophy.

After a weekend filled with upheaval, including the replacement of one interim CEO with another, board member Ilya Sutskever expressed regrets for his involvement in Altman's ousting. Sutskever, a key driver of the shakeup, mentioned his love for what OpenAI has built and his determination to reunite the company.

The current board of OpenAI consists of Sutskever, the co-founder and chief scientist; Adam D'Angelo, CEO of Quora; tech entrepreneur Tasha McCauley; and Helen Toner of the Georgetown Center for Security and Emerging Technology. Earlier this year, the board had more members, but some have departed, including LinkedIn founder Reid Hoffman and former Republican U.S. Representative Will Hurd.

The tensions within OpenAI's board can be traced back to a falling out between Altman and Tesla CEO Elon Musk in 2018. Musk left OpenAI due to a potential conflict of interest with his electric automaker, Tesla. Musk, who recently launched his own AI startup, xAI, has expressed concerns that Microsoft is leading OpenAI astray in pursuit of higher profits.

Despite multiple requests for comment, OpenAI's board members have remained silent. One notable board member, Adam D'Angelo, has been vocal about the importance of working towards general AI with safety in mind. However, he recently questioned the limitations of current AI systems, suggesting that their abilities may be more limited than previously thought.

The future of OpenAI remains uncertain as the organization grapples with the aftermath of Altman's firing and the potential loss of its workforce to Microsoft and other competitors. The incident has raised questions about the balance between commercial success and the original mission of building safe and advanced artificial intelligence.

/ Wednesday, 22 November 2023 /

themes:  OpenAI  Sam Altman  AI (Artificial intelligence)  Tesla  Elon Musk  Facebook  Microsoft  Google

VIEWS: 351


20/05/2024    info@iqtech.top
All rights to the materials belong to their authors.
RSS