OpenAI Announces New Board Members and Concludes Internal Investigation

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ICARO Media Group
News
08/03/2024 23h46

In a recent announcement, OpenAI revealed its new board members and the completion of an internal investigation conducted by U.S. law firm WilmerHale. The investigation delved into the events leading up to the ouster of OpenAI CEO Sam Altman, with Altman himself set to rejoin the company's board.

The newly appointed board members include Dr. Sue Desmond-Hellmann, former CEO of the Bill and Melinda Gates Foundation; Nicole Seligman, former EVP and global general counsel of Sony; and Fidji Simo, CEO and chair of Instacart. These individuals will work alongside existing board members Adam D'Angelo, Larry Summers, Bret Taylor, Sam Altman, Greg Brockman, and the senior management team of OpenAI.

According to a release, the investigation report was not made public; however, a summary of the findings was provided. The review confirmed a significant breakdown of trust between the prior board and Altman and Brockman. It also stated that the board acted in good faith and did not anticipate the ensuing instability. The investigation involved interviewing dozens of individuals, including previous board members, advisors, and current executives, while also examining over 30,000 documents.

Bret Taylor, chair of OpenAI's board, expressed unanimous support for Altman and Brockman as the right leaders for the organization. Altman himself expressed gratitude towards Taylor, Larry Summers, and WilmerHale for their contributions throughout the investigation process. Altman acknowledged the remarkable role of CTO Mira Murati, thanking her for her key leadership during challenging times.

The shake-up within OpenAI's board took place in November, resulting in Altman's initial departure and subsequent reinstatement. This move sparked resignations, including an open letter signed by the majority of OpenAI's employees, as well as concerns from investors such as Microsoft. Altman's return coincided with the departure of board members Helen Toner, Tasha McCauley, and Ilya Sutskever, who had voted for his removal. Adam D'Angelo, who also voted against Altman, remained on the board.

OpenAI has continued to strengthen its board with the addition of notable members, including Bret Taylor and Larry Summers, while Microsoft secured a nonvoting board observer position. The company's recent launch of ChatGPT in November 2022 has been highly successful, earning it the title of the fastest-growing consumer app in history. Furthermore, OpenAI's valuation was reportedly estimated at $86 billion, leading to a deal that allowed employees to sell shares. However, the events surrounding Altman's ouster caused unexpected delays in finalizing this deal.

The repercussions of the tumultuous period continue to affect OpenAI. Billionaire entrepreneur Elon Musk recently filed a lawsuit against Sam Altman and Greg Brockman for breach of contract and breach of fiduciary duty. Musk argues that OpenAI has transformed into a closed-source subsidiary of Microsoft, breaching the founding agreement established with Musk and disregarding the certification of incorporation from 2015.

OpenAI plans to file a motion to dismiss all of Musk's claims, as legal experts have raised concerns about the viability of the lawsuit. In response, OpenAI exposed old emails from Musk, in which he supported the company's necessity to raise significant funds and gradually reduce openness over time. The lawsuit also coincides with previous controversies surrounding Altman's chip pursuits and investments.

As OpenAI moves forward, the addition of new board members strengthens the company's leadership team. The investigation's conclusion marks a pivotal moment for OpenAI, allowing the organization to focus on developing innovative AI technologies and advancing its mission.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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