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.
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“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.
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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”).
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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.
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Will this chatbot replace humans?
‘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.
“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.
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AI speech used to open Congress hearing
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.
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.”
Octopus Energy Group, Britain’s largest residential gas and electricity supplier, is plotting a £10bn demerger of its technology arm that would reinforce its status as one of the country’s most valuable private companies.
Sky News can exclusively reveal that Octopus Energy is close to hiring investment bankers to help formally separate Kraken Technologies from the rest of the group.
The demerger, which would be expected to take place in the next 12 months, would see Octopus Energy’s existing investors given shares in the newly independent Kraken business.
A minority stake in Kraken of up to 20% is expected to be sold to external shareholders in order to help validate the technology platform’s valuation, according to insiders.
One banking source said that Kraken could be valued at as much as $14bn (£10.25bn) in a forthcoming demerger.
Citi, Goldman Sachs, JP Morgan and Morgan Stanley are among the investment banks invited to pitch for the demerger mandate in recent weeks.
A deal will augment Octopus Energy chief executive Greg Jackson’s paper fortune, and underline his success at building a globally significant British-based company over the last decade.
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Octopus Energy now has 7.5m retail customers in Britain, following its 2022 rescue of the collapsed energy supplier Bulb, and the subsequent acquisition of Shell’s home energy business.
In January, it announced that it had become the country’s biggest supplier – surpassing Centrica-owned British Gas – with a 24% market share.
It also has a further 2.5m customers outside the UK.
Image: Kraken is an operating system licensed to other energy providers, water companies and telecoms suppliers. Pic: Octopus
Sources said a £10bn valuation of Kraken would now imply that the whole group, including the retail supply business, was worth in the region of £15bn or more.
That would be double its valuation of just over a year ago, when the company announced that it had secured new backing from funds Galvanize Climate Solutions and Lightrock.
Shortly before that, former US vice president Al Gore’s firm, Generation Investment Management, and the Canada Pension Plan Investment Board increased their stakes in Octopus Energy in a transaction valuing the company at $9bn (£7.2bn).
Kraken is an operating system which is licensed to other energy providers, water companies and telecoms suppliers.
It connects all parts of the energy system, including customer billing and the flexible management of renewable generation and energy devices such as heat pumps and electric vehicle batteries.
The business also unlocks smart grids which enable people to use more renewable energy when there is an abundant supply of it.
In the UK, its platform is licensed to Octopus Energy’s rivals EON and EDF Energy, as well as the water company Severn Trent and broadband provider Cuckoo.
Overseas, Kraken serves Origin Energy in Australia, Japan’s Tokyo Gas and Plentitude in countries including France and Greece.
Its biggest coup came recently, when it struck a deal with National Grid in the US to serve 6.5m customers in New York and Massachusetts.
Sources said other major licensing agreements in the US were expected to be struck in the coming months.
Kraken, which is chaired by Gavin Patterson, the former BT Group chief executive, is now contracted to more than 70m customer accounts globally – putting it easily on track to hit a target of 100m by 2027.
Earlier this year, Mr Jackson said that target now risked being seen as “embarrassingly unambitious”.
Last July, Kraken recruited Amir Orad, a former boss of NICE Actimize, a US-listed provider of enterprise software to global banks and Fortune 500 companies, as its first chief executive.
A demerger of Kraken will trigger speculation about an eventual public market listing of the business.
Its growth in the US, and the relative public market valuations of technology companies in New York and London, may put the UK at a disadvantage when Kraken eventually considers where to list.
One key advantage of demerging Kraken from the rest of Octopus Energy Group would be to remove the perception of a conflict of interest among potential customers of the technology platform.
A source said the unified corporate ownership of both businesses had acted as a deterrent to some energy suppliers.
Kraken has also diversified beyond the energy sector, and earlier this year joined a consortium which was exploring a takeover bid for stricken Thames Water.
The boss of Ryanair has told Sky News the president of the European Commission should “quit” if she can’t stop disruption caused by repeated French air traffic control strikes.
Michael O’Leary, the group chief executive of Europe’s largest airline by passenger numbers, said in an interview with Business Live that Ursula von der Leyen had failed to get to grips, at an EU level, with interruption to overflights following several recent disputes in France.
The latest action began on Thursday and is due to conclude later today, forcing thousands of flights to be delayed and cancelled through French airspace closures.
Mr O’Leary told presenter Darren McCaffrey that French domestic flights were given priority during ATC strikes and other nations, including Italy and Greece, had solved the problem through minimum service legislation.
He claimed that the vast majority of flights, cancelled over two days of action that began on Thursday, would have been able to operate under similar rules.
Mr O’Leary said of the EU’s role: “We continue to call on Ursula von der Leyen – why are you not protecting these overflights, why is the single market for air travel being disrupted by a tiny number of French air traffic controllers?
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Image: Ryanair has cancelled more than 400 flights over two days due to the action in France. File pic: PA
“All we get is a shrug of their shoulders and ‘there’s nothing we can do’. We point out, there is.”
He added: “We are calling on Ursula von der Leyen, who preaches about competitiveness and reforming Europe, if you’re not willing to protect or fix overflights then quit and let somebody more effective do the job.”
The strike is estimated, by the Airlines for Europe lobby group to have led to at least 1,500 cancelled flights, leaving 300,000 travellers unable to make their journeys.
Image: Michael O’Leary believes the EU can take action on competition grounds. Pic: PA
Ryanair itself had axed more than 400 flights so far, Mr O’Leary said. Rival easyJet said on Thursday that it had cancelled 274 services over the two days.
The beginning of July marks the start of the European summer holiday season.
The French civil aviation agency DGAC had already told airlines to cancel 40% of flights covering the three main Paris airports on Friday ahead of the walkout – a dispute over staffing levels and equipment quality.
Mr O’Leary described those safety issues as “nonsense” and said twhile the controllers had a right to strike, they did not have the right to close the sky.
DGAC has warned of delays and further severe disruption heading into the weekend.
Many planes and crews will be out of position.
Mr O’Leary is not alone in expressing his frustration.
The French transport minister Philippe Tabarot has denounced the action and the reasons for it.
“The idea is to disturb as many people as possible,” he said in an interview with CNews.
Passengers are being advised that if your flight is cancelled, the airline must either give you a refund or book you on an alternative flight.
If you have booked a return flight and the outbound leg is cancelled, you can claim the full cost of the return ticket back from your airline.
The CBI has begun a search for a successor to Rupert Soames, its chairman, as it continues its recovery from the crisis which brought it to the brink of collapse in 2023.
Sky News has learnt that the business lobbying group’s nominations committee has engaged headhunters to assist with a hunt for its next corporate figurehead.
Mr Soames, the grandson of Sir Winston Churchill, was recruited by the CBI in late 2023 with the organisation lurching towards insolvency after an exodus of members.
The group’s handling of a sexual misconduct scandal saw it forced to secure emergency funding from a group of banks, even as it was frozen out of meetings with government ministers.
One prominent CBI member described Mr Soames on Thursday as the group’s “saviour”.
“Without his ability to bring members back, the organisation wouldn’t exist today,” they claimed.
Mr Soames and Rain Newton-Smith, the CBI chief executive, have partly restored its influence in Whitehall, although many doubt that it will ever be able to credibly reclaim its former status as ‘the voice of British business’.
Its next chair, who is also likely to be drawn from a leading listed company boardroom, will take over from Mr Soames early next year.
Egon Zehnder International is handling the search for the CBI.
“The CBI chair’s term typically runs for two years and Rupert Soames will end his term in early 2026,” a CBI spokesperson said.
“In line with good governance, we have begun the search for a successor to ensure continuity and a smooth transition.”