OpenAI has 'full confidence' in CEO Sam Altman after investigation, reinstates him to board

OpenAI has ‘full confidence’ in CEO Sam Altman after investigation, reinstates him to board

After completing an external investigation into the company’s difficulties, OpenAI has announced that it is reaffirming its trust in CEO Sam Altman by reinstating him to its board of directors.

The creator of ChatGPT has hired the law firm WilmerHale to investigate the reasons behind the sudden firing of Altman in November. After conducting an investigation lasting several months, it was determined that Altman’s dismissal was due to a breakdown in his relationship with the previous board, leading to a loss of trust. OpenAI announced this finding on Friday.

OpenAI recently revealed the appointment of Dr. Sue Desmond-Hellman, a former CEO of the Bill & Melinda Gates Foundation, Nicole Seligman, a previous Sony general counsel, and Fidji Simo, CEO of Instacart, to its board of directors.

The actions are a way for the San Francisco-based artificial intelligence company to show investors and customers that it is trying to move past the internal conflicts that nearly destroyed it last year and made global headlines.

Altman expressed relief that the situation has concluded, informing reporters on Friday that he has been disappointed to witness individuals with ulterior motives purposely divulging information in an attempt to damage the company and create divisions within the team. He also acknowledged the lessons he has gained from this ordeal and offered an apology for the disagreement he had with a previous board member, acknowledging that he could have approached it with greater sensitivity.

OpenAI had been quiet for over three months regarding the reasons behind the removal of Altman from its board of directors on Nov. 17. In a statement, it was revealed that Altman’s lack of transparency in communication had hindered the board’s ability to fulfill its duties, resulting in his dismissal. Furthermore, the chairman of the board, Greg Brockman, also stepped down from his position as the company’s president.

Many of the disputes within OpenAI have originated from its unique governing system. Initially established as a non-profit organization dedicated to developing advanced AI for the betterment of society, it has since become a rapidly expanding corporation still overseen by a non-profit board committed to its original purpose.

According to the investigation, the previous board made a decision within their allowed authority. However, it was also concluded that Altman’s actions were not grounds for removal. OpenAI stated that both Altman and Brockman are still suitable leaders for the company.

The board’s chair, Bret Taylor, informed reporters on Friday that the review determined there was a major loss of trust between the previous board and Sam and Greg. It also concluded that the board acted honestly and believed their actions would address the perceived challenges, but did not anticipate the resulting instability.

Following his sudden removal, Altman and his allies, along with support from the majority of OpenAI employees and business partner Microsoft, managed to engineer a return to their leadership positions for Altman and Brockman. This culminated in the ousting of board members Tasha McCauley, Helen Toner, and Ilya Sutskever, although Sutskever retained his role as chief scientist.

Initially, Altman and Brockman were not able to reclaim their positions on the board. Instead, a new board consisting of three men, including Taylor, who served as a board member for Salesforce and Facebook and previously chaired Twitter’s board before Elon Musk’s tenure, was formed. The two other members were Larry Summers, the former U.S. Treasury Secretary, and Adam D’Angelo, the current CEO of Quora. D’Angelo was the sole member of the previous board to retain his position.

Both Quora and Taylor have established new AI chatbots for their startup, Sierra, which utilize OpenAI technology.

In December, OpenAI hired the law firm WilmerHale, who then proceeded to conduct numerous interviews with the previous board, current executives, advisors, and other individuals who were involved. Additionally, the law firm reviewed a large number of documents and examined other corporate actions.

The board has announced plans to enhance the company’s governance structure. These plans include implementing new corporate guidelines, reinforcing policies regarding conflicts of interest, introducing a confidential whistleblower hotline for employees and contractors to report any issues, and forming additional board committees.

The organization continues to face various challenges, such as a legal case brought forth by billionaire Elon Musk. Musk, who provided funding in the initial stages of OpenAI and served on its board after its establishment in 2015, accuses the company of straying from its original purpose in favor of financial gain.

Legal professionals have raised skepticism as to whether Musk’s claims, which revolve around a purported violation of an agreement, will stand in a legal setting.

However, the company is currently facing internal disputes regarding its unique management framework, level of transparency in research, and approach to achieving artificial general intelligence (AGI), which involves developing AI systems that can rival or surpass human capabilities in a diverse range of tasks.

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OpenAI and the Associated Press have entered into a licensing and technology agreement to grant OpenAI access to a portion of the AP’s text archives.

Source: wral.com