OpenAI Faces Internal Crisis: Mass Employee Resignation Threat Over Board’s Decision and Sam Altman’s Dismissal

By Hatem Mamdouh On Nov 20, 2023

In a striking development, over two-thirds of OpenAI’s staff, totaling more than 500 of the 770 employees, have issued a stark ultimatum: reinstate the former CEO Sam Altman or face a mass exodus. This unprecedented situation was first reported by The Wall Street Journal.

OpenAI employees threaten: We will resign if the board of directors does not resign

Key Developments:

Resignation Threat: Employees have expressed a willingness to resign en masse if their demands for Altman’s reinstatement and the current board’s resignation are not met.
Microsoft’s Role: Microsoft, a significant stakeholder in OpenAI, has reportedly confirmed job opportunities for these employees, should they decide to leave.
Employee Statement: The staff collectively criticized the board’s inability to oversee OpenAI effectively, citing a lack of competence and judgment.
Altman’s Dismissal: Altman, a prominent Silicon Valley figure, was dismissed a year after the launch of the generative AI platform, ChatGPT. The board accused him of being less than forthright, leading to a trust breach.
Board’s Stance: The board stated that a detailed review process led to the conclusion that Altman’s lack of candor hindered his role, ultimately eroding their confidence in his leadership.
Greg Brockman’s Resignation: Following Altman’s dismissal, Greg Brockman, a co-founder and chairman, announced his resignation, marking another significant leadership change.

Breaking: 505 of 700 employees @OpenAI tell the board to resign. pic.twitter.com/M4D0RX3Q7a

— Kara Swisher (@karaswisher) November 20, 2023

Investor Pressure:

Investors in OpenAI, led by Microsoft, have reportedly started pressing the board to reconsider their decision to dismiss Altman. This pressure comes amidst ongoing discussions regarding Altman’s potential return to the CEO position.

Underlying Conflicts:

The internal strife includes debates over AI security, the pace of technological development, and the company’s marketing strategies.

This turmoil at OpenAI unfolds just a week after ChatGPT achieved a significant milestone of 100 million weekly users, underscoring the high-stakes environment in which these developments are taking place.