Sam Altman's surprise ouster from OpenAI has left Silicon Valley CEOs in shock. However, OpenAI's decision to fire the face of the company and its co-founder could have been the result of a ‘palace coup.’
The reason behind Altman's ouster could also be something that Elon Musk has long been complaining about.
What Happened: Sam Altman's surprise ouster from OpenAI could have been caused by something that Tesla Inc. TSLA Elon Musk has long been complaining about.
In a decision that has shocked the industry, Altman was fired from the company he co-founded. This has led to several conspiracy theories, and one of those theories could have something to do with Musk.
Sam Altman's ouster from OpenAI has caught everyone off guard, right from the company's single largest investor Microsoft Corp. MSFT.
See Also: Elon Musk Helped Found ChatGPT, But Now He Thinks It Has Become ‘Insufferable.’ What’s On With That?
While OpenAI's statement expresses a vote of no confidence in Altman's ability to continue leading the company, veteran journalist Kara Swisher has shed light on what may have happened behind the doors.
"It was a "misalignment" of the profit versus nonprofit adherents at the company," Swisher said, adding that the OpenAI Dev Day earlier this month was the "issue".
OpenAI announced a slew of new features and products at its Dev Day event. This includes GPT-4 Turbo and the ability for anyone to create and sell their own custom GPT Bots.
Swisher says there could be a "lot more departures".
Musk, though, could be a happy man today with what looks like a change in strategy at OpenAI.
Earlier in February, Musk said that OpenAI's for-profit pivot went against the ethos of the company he co-founded in 2015.
"Now it has become a closed source, maximum-profit company effectively controlled by Microsoft. Not what I intended at all," Musk said at the time.
A Palace Coup? Chief Scientist Says ‘You Can Call It This Way'
Chief scientist, co-founder and a board member Ilya Sutskever responded to the allegations of a palace coup, saying "You can call it this way," in a statement to The Information.
More or less confirming Swisher's scoop, Sutskever said, "This was the board doing its duty to the mission of nonprofit, which is to make sure that OpenAI builds AGI that benefits all of humanity."
Altman's sacking has so far been poorly received by many Silicon Valley CEOs.
Box Inc. BOX CEO Aaron Levie said thousands of startups depend on OpenAI, and that Altman's ouster "instantly changes the structure of the industry".
Brian Chesky, co-founder and CEO of Airbnb Inc. ABNB was more direct in his criticism of the events that have unfolded.
"Sam Altman and Greg Brockman have my full support. I'm saddened by what's transpired. They, and the rest of the OpenAI team, deserve better," he said.
Microsoft, though, said it stands by OpenAI's CTO and its interim CEO Mira Murati.
"We have a long-term agreement with OpenAI with full access to everything we need to deliver on our innovation agenda and an exciting product roadmap; and remain committed to our partnership, and to Mira and the team," Microsoft CEO Satya Nadella said in a statement.
Why It Matters: OpenAI's valuation has soared post the success of ChatGPT. The company was close to a deal with Middle East investors, valuing the company at $90 billion.
While Altman has been at the helm of the company, OpenAI launched ChatGPT and also created a revenue stream with the launch of GPT for individuals as well as enterprises. The company also revealed that ChatGPT has 100 million monthly active users, marking a significant milestone.
However, with Altman now out of the company he co-founded, the company's direction ahead remains unclear. It remains to be seen if OpenAI manages to maintain its AI leadership, or if this decision kills the momentum it has generated for itself and Microsoft.
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