Negotiations to bring back Sam Altman, the recently ousted chief executive of OpenAI, continued through Sunday evening. There were disagreements over the composition of the company’s board of directors, according to sources familiar with the discussions.
Over the weekend, Mr. Altman engaged in a pressure campaign on the start-up’s board of directors who removed him on Friday afternoon, resulting in substantial support from investors, employees, and OpenAI executives.
Mr. Altman was present at the OpenAI headquarters on Sunday afternoon and posted a photo of himself on X (formerly Twitter), wearing a guest identification badge, with the caption, “first and last time i ever wear one of these.”
The talks centered around how the company’s board of directors might be restructured if Mr. Altman were to return as chief executive. However, there has been no agreement on the makeup of the restructured board, and Mr. Altman’s reinstatement is not assured, according to sources.
Mr. Altman’s return would likely involve significant changes to the board, with the company currently evaluating candidates. As OpenAI evolves from a research start-up to a commercial entity with substantial revenue and ambitions, the board’s structure could also change over time.
However, Mr. Altman and the investors are keen to retain representation from individuals concerned about A.I. safety, as well as other board members with expertise in technology and product commercialization.
OpenAI’s unique governance structure, which limits its profits, may undergo changes while maintaining the checks and balances built around the safety of its technology. The priority is to have a viable board in place by Monday morning.
In the long run, Mr. Altman and his supporters aim to establish a more traditional structure for the company to reflect its growth into a business valued at $80 billion, with numerous customers and stakeholders. This comes in response to the realization that OpenAI’s current structure is no longer effective.
Since Mr. Altman’s ousting, there has been a flurry of activity at OpenAI, a company he co-founded eight years ago, which has gained significant attention in the tech industry thanks to its popular ChatGPT chatbot.
Former OpenAI board member and ex-Republican congressman Will Hurd spent two days at the company’s headquarters in San Francisco’s Mission district, delving into the details of Mr. Altman’s dismissal. According to Mr. Hurd, he was asked for help by a company representative before Mr. Altman’s removal, emphasizing the importance of trust and transparency in the industry and the company’s governance.
OpenAI’s board of directors has an atypical structure, originating as a nonprofit before transitioning into a for-profit entity with Microsoft as its principal investor. The for-profit company is still answerable to the nonprofit board, meaning that the company’s investors have had no official say in its operations or leadership.
Prior to Mr. Altman’s departure, OpenAI had six board members, including Mr. Altman and Greg Brockman, a company co-founder and board chairman who resigned on Friday in solidarity with Mr. Altman.
The other board members are Ilya Sutskever, an OpenAI co-founder; Adam D’Angelo, the chief executive of Quora; Helen Toner, a director of strategy at Georgetown’s Center for Security and Emerging Technology; and Tasha McCauley, an entrepreneur and computer scientist.
Following Mr. Altman’s removal, individuals close to the company have been trying to understand the rationale behind the board’s decision. The company’s chief operating officer reassured staff that there was no “malfeasance” involved in Mr. Altman’s dismissal. Investors, upon learning of his ouster, endeavored to influence the board to reverse its decision, reaching out to Microsoft due to its significant stake in OpenAI.
The deadlock in negotiations is the latest development in a series of power struggles at OpenAI, shedding light on the longstanding division in the A.I. community between those viewing A.I. as a significant business opportunity and those concerned about the potential risks of rapid progress.
The company had been in talks to raise a new funding round that would value it at over $80 billion. Mr. Altman’s potential reinstatement would mark a significant turnaround for OpenAI, which cited his lack of transparency with the board as the reason for his ouster.
As deliberations continued on Sunday, OpenAI called in resources, with deliveries of drinks and food arriving at the headquarters, indicating a potentially prolonged discussion.
