A quick word about the absolutely bonkers ouster of Sam Altman from OpenAI
I think we can all agree that the weekend of Nov. 17, 2023, will go down in the books as the weekend things got chaotic for AI companies in general and their boards in particular. Let’s revisit the backstory in case you were spelunking in an Icelandic volcano crater and maybe missed it.
Sam Altman, now former CEO and cofounder of OpenAI and its popular app, ChatGPT, was abruptly fired by the company’s board of directors on Friday. The board had lost confidence in him — more specifically, one board member had lost confidence. The move left Silicon Valley — and AI investors — stunned. Altman is known as the godfather of AI and a global evangelist for the technology.
The fallout was immediate and intense. Despite attempts to reverse the decision, Altman was maybe, possibly recruited by Microsoft. By Monday morning, the majority of OpenAI‘s employees wrote letters to the board asking them to resign.
But now…. he’s back at OpenAI. So never mind.
What a mess. Not good look for anyone, especially the board.
OpenAI is a nonprofit. But the board leadership lessons are universal. We should take note of the shrapnel in the aftermath. The clear winners? Altman, who appears to be firmly balanced on both feet back where he started and Microsoft, whose stock is hit an all-time high during the shuffle. The losers? Everyone else.
The point here is the ripple effects of board decisions on leadership, company morale and public perception cannot be overstated. In an industry already facing skepticism, such dramatic shifts can damage the delicate fabric of trust that businesses rely upon.
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