Key Points:
- OpenAI CEO Sam Altman will return to the board alongside three new directors following an investigation into his November dismissal.
- The prior board’s decision to dismiss Altman was attributed to a breakdown in trust rather than concerns about finances or product safety.
- OpenAI has implemented new governance rules, including whistleblower protections and a strengthened conflict-of-interest policy.
- Altman’s reinstatement followed internal turmoil and discussions about the company’s governance structure.
On Friday, OpenAI announced that its Chief Executive, Sam Altman, will return to the board alongside three new directors. The decision follows an investigation by law firm WilmerHale into the events surrounding Altman’s November dismissal and subsequent reinstatement. OpenAI has implemented new governance rules and strengthened its conflict of interest policy, with the board unanimously backing Altman’s leadership.
Altman’s ouster in November swiftly reversed within days and sparked shock among employees, investors, and Microsoft, OpenAI’s biggest financial backer. The investigation by WilmerHale found that Altman’s dismissal resulted from a breakdown in the relationship and loss of trust between him and the prior board rather than concerns related to finances or product safety.
Joining Altman on the board are Sue Desmond-Hellmann, former CEO of the Bill and Melinda Gates Foundation, Nicole Seligman, former president of Sony Entertainment, and Fidji Simo, CEO of Instacart. Altman expressed enthusiasm for the new board members, emphasizing the importance of the work ahead.
These additions will join the existing board members Adam D’Angelo, CEO of Quora, former U.S. Treasury Secretary Larry Summers, and Chairman Bret Taylor, former co-CEO of Salesforce. OpenAI also announced the adoption of new corporate governance guidelines, the establishment of a whistleblower hotline, and the strengthening of its conflict-of-interest policy.
The investigation by WilmerHale found that the prior board’s actions were within its discretion to terminate Altman but acknowledged that his conduct did not warrant removal. OpenAI has not provided detailed information about the improvements to its governance policies.
Altman’s swift return as CEO came after significant internal unrest, with almost all of OpenAI’s employees threatening to leave unless Altman was reinstated. His return prompted discussions about the company’s governance structure, leading to the announcement of a reconstituted board helmed by Bret Taylor and excluding Sam Altman.
