Who is Sam Altman? The former OpenAI boss and ChatGPT guru who became one of AI’s biggest players

Published

1 year ago

November 18, 2023

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He was a tech whizz before he left primary school, dropped out of one of America’s top universities, and appeared to be spearheading a revolution that could change our lives forever.

Sam Altman would have been unknown to most outside tech circles before the launch of his firm’s breakthrough chatbot ChatGPT, but he has recently much of his time rubbing shoulders with world leaders and some of America’s most recognisable executives.

But in a surprise announcement on Friday, OpenAI – the firm behind ChatGPT – revealed Altman had been ousted as its chief executive after the board said it no longer had confidence in him.

Here, Sky News looks at the 38-year-old’s rise to fame – before his sudden axing.

Earlier life

Altman grew up in the US state of Missouri where, as an eight-year-old, he was gifted his first computer and quickly learnt not just how to use it, but to program for it.

Altman attended John Burroughs School in St Louis, and told The New Yorker in a 2016 interview that having his computer helped him come to terms with his sexuality and come out to his parents when he was a teenager.

“Growing up gay in the Midwest in the 2000s was not the most awesome thing,” he recalled. “And finding AOL chatrooms was transformative. Secrets are bad when you are 11 or 12.”

With school in the rear-view mirror, it was time for university – Stanford, no less. Altman made his way to that famous California institution to study computer science, but dropped out after just two years, following in the footsteps of previous dropouts-turned-tech superstars Bill Gates and Mark Zuckerberg, who both abandoned their Harvard degrees before becoming two of history’s most influential CEOs.

Abandoning a precious spot at one of America’s top universities seemed such a rite of passage for the country’s leading tech entrepreneurs that it played right into the success story of the now disgraced Elizabeth Holmes, whose departure from Stanford to gatecrash Silicon Valley led to a wave of media attention not dissimilar to that currently given to Altman.

His first post-university venture was a smartphone app called Loopt, which let users selectively share their real-time location with other people. Some $30m (£24m) was raised to launch the company, aided by funding from a start-up accelerator firm called Y Combinator, which lists the likes of Airbnb and Twitch among the internet companies it has helped establish.

Altman became president of Y Combinator itself in 2014, after the sale of Loopt for $44m (£35m) in 2012. He also founded his own venture capital fund called Hydrazine Capital, attracting enough investment to be named on the Forbes 30 Under 30 list for venture capital. As if he wasn’t busy enough, Altman also ran Reddit for a grand total of eight days amid a leadership shake-up in 2014, describing his tenure as “sort of fun”.

The rise of OpenAI

While his time at the top of Reddit only lasted eight days, his oversight of OpenAI has lasted eight years. He was “doing pretty well” with it, he said in a February tweet (certainly compared to Loopt, which, he now says, “sucked”).

He launched the company with a certain Elon Musk (who only ran SpaceX and Tesla at the time) in 2015, the two men providing funding alongside the likes of Amazon and Microsoft, totalling $1bn (£800m).

It was run as a non-profit with the noble goal of developing AI while making sure it doesn’t wipe out humanity.

So far, mission accomplished – but if Altman’s to be believed, the risk since has become very real indeed.

Under his tenure, OpenAI ceased to be a non-profit and grew to an estimated value of up to $29bn (£23bn), all thanks to the remarkable success of its generative AI tools – ChatGPT for text and DALL-E for images.

Microsoft boss Satya Nadella described Altman as an “unbelievable entrepreneur” who bets big and bets right, which OpenAI’s success makes hard to argue with.

ChatGPT amassed tens of millions of users within weeks of launching in late 2022, wowing experts and casual observers alike with its ability to pass the world’s toughest exams, get through job applications, compose anything from political speeches to children’s homework, and write its own computer code.

Suddenly the concept of a large language model (meaning it is trained on huge amounts of text data so that it can understand our requests and respond accordingly) became something of a mainstream buzz term, its popularity seeing Microsoft invest extra cash into OpenAI and bring the tech to its Bing search engine and Office apps.

Google also got in on the act with its Bard chatbot, some of China’s biggest tech companies entered the race, while Musk – who left OpenAI in 2018 due to a conflict of interest with Tesla’s work on self-driving AI – has said he wants to launch his own one too.

All the while, OpenAI’s technology is also improving – an upgrade dubbed GPT-4 within months of ChatGPT’s release showing just how quickly these models can develop.

‘My worst fears’

For all the wonder such systems have provided, it’s matched – if not surpassed – by the concerns. Whether it be spreading disinformation or making jobs redundant, governments are scrambling to formulate an effective way of regulating a technology that seems destined to change the world forever.

Perhaps with an eye on how some of his Silicon Valley contemporaries have failed to act on the dangers of their creations before it’s too late, Altman appears keen to be a willing participant in just how it should be done.

“My worst fears are that we, the industry, cause significant harm to the world,” Altman told the US Senate, his assessment that government regulation would be “critical to mitigate the risks” undoubtedly music to the ears of politicians who never seem overly impressed by figures from the tech world.

In the space of a few short weeks, Altman met the US vice president, Kamala Harris, France’s Emmanuel Macron, European Commission president Ursula von der Leyen and the British prime minister, Rishi Sunak – all politicians who share the same hopes and fears about the potential benefits and dangers of AI.

With the EU seemingly none too impressed by Elon Musk’s running of Twitter, TikTok managing to achieve the mostly impossible task of uniting Democrats and Republicans against a common enemy, and Mark Zuckerberg having struggled to repair his reputation after the Cambridge Analytica scandal, the upstart Altman could be positioning himself to become a more durable tech star than some of his forebears.

But just in case it does all go wrong, he’s previously admitted to being a prepper – someone who stockpiles everything from guns to medicine should the worst should befall us.

Announcing Altman’s departure as OpenAI chief executive on, the company said a review found he had not been “consistently candid in his communications with the board”.

He posted on social media following the announcement, writing: “I loved my time at OpenAI.

“It was transformative for me personally, and hopefully the world a little bit.

“Most of all, I loved working with such talented people. (I) will have more to say about what’s next later.”

Business

Cineworld owners screen plan for stock market comeback in New York

Published

4 hours ago

November 17, 2024

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Cineworld owners screen plan for stock market comeback in New York

Cineworld’s hedge fund backers are drawing up plans to return the cinema operator to the public markets amid continuing uncertainty about the future of dozens of its British sites.

Sky News has learnt that the company’s owners are at the early stages of considering a New York listing for the business, with the first half of 2026 considered a likely window for it to take place.

City insiders said that a flotation was likely to encompass Cineworld’s operations outside the UK, with the group’s board expected to consider a sale of the British operations at some point.

They cautioned, however, that no decisions had been reached and would not be for some time.

The fate of Cineworld’s business in the UK has been mired in uncertainty for months, with the company initially exploring a sale of it before turning to a restructuring plan which compromises many of its landlords and other creditors.

It has announced the permanent closure of six sites, but it emerged last month that nearly 20 more were at risk of being shut amid ongoing talks with property owners.

The restructuring plan is due to complete later this month, which some landlords have opposed over the fairness of its terms.

Documents circulated as part of the restructuring plan process highlighted the fact that the company did not have sufficient funding to meet a quarterly rent bill on June 24 of £15.9m.

“Absent this funding, the UK Group would have been insolvent on a cashflow basis,” they said.

Other cinema operators, such as Odeon, are now poised to step in to take over small numbers of Cineworld’s other sites.

The company trades from more than 100 locations in Britain, including at the Picturehouse chain, and employs thousands of people.

Cineworld grew under the leadership of the Greidinger family into a global giant of the industry, acquiring chains including Regal in the US in 2018 and the British company of the same name four years earlier.

Its multibillion-dollar debt mountain led it into crisis, though, and forced the company into Chapter 11 bankruptcy protection in 2022.

It delisted from the London Stock Exchange in August 2023, having seen its share price collapse.

In addition to the UK, Cineworld also operates in central and Eastern Europe, Israel and the US.

Cineworld has been contacted for comment.

Business

Former Tory minister Heaton-Harris eyes top job at football regulator

Published

1 day ago

November 16, 2024

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Former Tory minister Heaton-Harris eyes top job at football regulator

A former Conservative cabinet minister has thrown his hat into the ring to become the inaugural chair of Britain’s new independent football regulator.

Sky News has learnt that Chris Heaton-Harris, who stood down as an MP at July’s general election, is among those who applied for the role ahead of a deadline on Friday.

Mr Heaton-Harris is himself a qualified football referee who has officiated at matches for decades.

A former Northern Ireland secretary and chief whip under Rishi Sunak and Boris Johnson respectively, he said in 2022 of his part-time career as a football official: “I took a [refereeing] course and that was it, I’ve been going ever since.

“Football has done wonders for me throughout my life so I would recommend it to everybody.”

Mr Heaton-Harris is among a large number of people who have applied for the role of chair at the Independent Football Regulator (IFR), according to officials.

A publicly available timetable for the search says that interviews for the £130,000-a-year post will end on 11 December, with an appointment expected in the new year.

It is the second time that the government has embarked on a search for a chair for the IFR after an earlier hunt was curtailed by the general election.

The role will be based at the watchdog’s new headquarters in Manchester and will require a three-day-a-week commitment.

The Football Governance Bill had its second reading in the House of Lords this week, as part of a process that will represent the most fundamental shake-up in the oversight of English football in the game’s history.

The Labour administration has dropped a previous stipulation that the regulator should have regard to British foreign and trade policy when determining the appropriateness of a new club owner.

The IFR will monitor clubs’ adherence to rules requiring them to listen to fans’ views on issues including ticket pricing, while it may also have oversight of the parachute payments made to clubs in the years after their relegation from the Premier League.

The top flight has issued a statement expressing reservations about the regulator’s remit, while it has been broadly welcomed by the English Football League.

The IFR’s creation will come with the Premier League embroiled in a civil war over Manchester City‘s legal battles emanating from allegations that it breached the competition’s financial rules.

Next week, the 20 Premier League clubs will meet for a lengthy shareholder meeting, with a vote on amended Associated Party Transaction rules hanging in the balance.

The league needs 14 clubs to vote in favour for the rule changes to be passed.

Contrary to earlier expectations, however, a detailed discussion on a financial distribution agreement between the Premier League and EFL is unlikely to be on the agenda.

A Department for Culture, Media and Sport spokesperson said: “The process for recruiting the Independent Football Regulator chair is under way but no appointment decisions have been made.

“We do not comment on speculation.”

This weekend, Mr Heaton-Harris could not be reached for comment.

Business

Pizza Hut UK hunts buyer amid Budget tax hike crisis

Published

1 day ago

November 16, 2024

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Pizza Hut UK hunts buyer amid Budget tax hike crisis

Pizza Hut’s biggest UK franchisee has begun approaching potential bidders as it scrambles to mitigate the looming impact of tax hikes announced in last month’s Budget.

Sky News has learnt that Heart With Smart (HWS), which operates roughly 140 Pizza Hut dine-in restaurants, has instructed advisers to find a buyer or raise tens of millions of pounds in external funding.

City sources said this weekend that the process, which is being handled by Interpath Advisory, had got under way in recent days and was expected to result in a transaction taking place in the next few months.

HWS, which was previously called Pizza Hut Restaurants, employs about 3,000 people, making it one of the most significant businesses in Britain’s casual dining industry.

It is owned by a combination of Pricoa and the company’s management, led by chief executive Jens Hofma.

They led a management buyout reportedly worth £100m in 2018, with the business having previously owned by Rutland Partners, a private equity firm.

One source suggested that as well as the talks with external third parties, it remained possible that a financing solution could be reached with its existing backers.

HWS licenses the Pizza Hut name from Yum! Brands, the American food giant which also owns KFC.

Insiders suggested that the increases to the national living wage and employers’ national insurance contributions (NICs) unveiled by Rachel Reeves would add approximately £4m to HWS’s annual costs – equivalent to more than half of last year’s earnings before interest, tax, depreciation and amortisation.

One added that the Pizza Hut restaurants’ operation needed additional funding to mitigate the impact of the Budget and put the business on a sustainable financial footing.

The consequences of a failure to find a buyer or new investment were unclear on Saturday, although the emergence of the process comes amid increasingly bleak warnings from across the hospitality industry.

Last weekend, Sky News revealed that a letter co-ordinated by the trade body UK Hospitality and signed by scores of industry chiefs – including Mr Hofma – told the chancellor that left unaddressed, her Budget tax hikes would result in job losses and business closures within a year.

It also said that the scope for pubs and restaurants to pass on the tax rises in the form of higher prices was limited because of weaker consumer spending power.

That was followed by a similar letter drafted by the British Retail Consortium this week which also warned of rising unemployment across the industry, underlining the Budget backlash from large swathes of the UK economy.

Even before the Budget, hospitality operators were feeling significant pressure, with TGI Fridays collapsing into administration before being sold to a consortium of Breal Capital and Calveton.

Sky News recently revealed that Pizza Express had hired investment bankers to advise on a debt refinancing.

HWS operates all of Pizza Hut’s dine-in restaurants in Britain, but has no involvement with its large number of delivery outlets, which are run by individual franchisees.

Accounts filed at Companies House for HWS4 for the period from 5 December 2022 to 3 December 2023 show that it completed a restructuring of its debt under which its lenders agreed to suspend repayments of some of its borrowings until November next year.

The terms of the same facilities were also extended to September 2027, while it also signed a new 10-year Pizza Hut franchise agreement with Yum Brands which expires in 2032.

“Whilst market conditions have improved noticeably since 2022, consumers remain challenged by higher-than-average levels of inflation, high mortgage costs and slow growth in the economy,” the accounts said.

It added: “The costs of business remain challenging.”

Pizza Hut opened its first UK restaurant in the early 1970s and expanded rapidly over the following 15 years.

In 2020, the company announced that it was closing dozens of restaurants, with the loss of hundreds of jobs, through a company voluntary arrangement (CVA).

At that time, it operated more than 240 sites across the UK.

Mr Hofma and Interpath both declined to comment.