Sam Altman ousted and possibly reinstated as OpenAI CEO

Sam Altman, CEO of OpenAI, has been relieved from his duties following a board review. The board cited a lack of consistent candidness in Altman's communications as the reason for this decision.

• What Follows: Following this change, Greg Brockman, a co-founder of OpenAI, will step down as chairman but continue as president. Mira Murati, previously the CTO, will serve as the interim CEO.

• The Clash: Prior to this, Sam Altman, had significant disagreements with board members, particularly with co-founder and Chief Scientist Ilya Sutskever. The disputes revolved around the pace of development, commercialization strategy, and mitigating impacts of generative AI - a contentious area of artificial intelligence.

• Breaking the News: OpenAI employees reportedly found out about Altman's departure when it was publicly announced. The departure came as a shock, especially as Altman had been actively engaging with the AI community and policy-makers globally.

• Altman Reinstatement: Repercussions are emerging from OpenAI's shock move to dismiss Sam Altman from his role as CEO. Key investors, including Microsoft, Thrive Capital, and Tiger Global Management, are advocating for his reinstatement.

• Investor Backlash: The dismissal did not sit well with the company's major backers, prompting them to press for Altman's return and a complete overhaul of the current board. These investors are also contemplating potential successors for the board, should they step down.

• Investment and Employee Uncertainty: The ousting has also influenced prospective investments. Thrive Capital, scheduled to lead a tender offer for employee shares, has not yet transferred the funds and has expressed that Altman’s exit will influence its actions. Furthermore, the CEO's departure has sparked a wave of resignations, including the company's president, Greg Brockman.

• Future Steps: If not reinstated, Altman considers launching a new venture, possibly with former OpenAI staff. Venture capitalist Vinod Khosla has publicly stated his firm's support for Altman, whether at OpenAI or elsewhere.

The recent turn of events, including Altman's ousting, has indeed thrown OpenAI's governance into question. As the situation continues to unfold, the tech industry will undoubtedly keep a keen eye on OpenAI's next steps.