May 6, 2024

News and Political Commentary

Sam Altman confirms return to OpenAI board as law firm’s review rips ‘loss of trust’ that led to his sudden ouster

2 min read

The OpenAI board is attempting to close the door on a tumultuous chapter that saw its revered CEO Sam Altman fired, exalted and then reinstated as CEO in a chaotic four-day span. In a summary made public today, law firm WilmerHale concluded that the board didn’t realize that firing the CEO would “destabilize” the company and that it acted without allowing Altman to address the board’s concerns about a “loss of trust” between directors and management. The review determined that the board had “broad discretion” to fire Altman but that “his conduct did not mandate removal.”

The company published the summary of WilmerHale’s findings in a blog post today, but did not go further than absolving the board for firing Altman, while also finding that the board should not have fired Altman. The published review also lays to rest speculation that Altman was up to something nefarious that led the board to act rapidly to depose him. According to the summary, Altman’s firing “did not arise out of concerns regarding product safety or security, the pace of development, OpenAI’s finances, or its statements to investors, customers, or business partners.” It stopped short of explaining what the “loss of trust” stemmed from or how it escalated to Altman’s termination from the company. 

The board has since recruited new members—all women—and it appears the company is hoping to move on with a clean slate and a refreshed board. 

“We have unanimously concluded that Sam and Greg are the right leaders for OpenAI,” said Bret Taylor, chair of the OpenAI board, referring to Altman and Greg Brockman, who quit in protest after the board dumped Altman during a virtual meeting on Nov. 17, 2023. Brockman returned at the same time as Altman last year and both will now officially rejoin the board, the company said today.  

The independent investigation into the board’s firing of Altman and the removal of the duo from the board included…

Amanda Gerut

2024-03-08 21:17:51

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