How the chaos at ChatGPT maker OpenAI has unfolded as ousted CEO Sam Altman returns – and why it matters
Sam Altman – the public face of ChatGPT maker OpenAI – has returned to the company just days after his shock ousting.
Not being “consistently candid in his communications” was the charge laid at his feet by the board when the stunning decision to remove him was announced on Friday.
But within days, the 38-year-old was tipped for a return, those who toppled him seemingly harbouring second thoughts after the company president walked out and staff threatened to follow.
And now, less than a week later, he is indeed back.
Given Mr Altman and OpenAI are at the forefront of the AI revolution, the sense of Succession-style chaos should concern us all.
Here’s everything we know – and why it matters.
Shock departure
Mr Altman’s sacking was announced in an unassuming OpenAI press release.
Coming just weeks after he’d represented the firm at the UK’s AI Safety Summit, and days after appearing at the company’s first conference for third-party developers, the timing was a shock.
The board was said to have “lost confidence” in him due to unspecified communications issues.
In this case, the board had meant just four people – including OpenAI’s chief scientist Ilya Sutskever, who had reportedly become concerned that Altman was prioritising company growth over AI safety.
Members five and six – Mr Altman himself and then-president Greg Brockman – opposed it but were outvoted.
“I loved my time at OpenAI,” Mr Altman posted on X as the news broke, describing it as “transformative”.
“Will have more to say about what’s next later.”
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OpenAI CEO Sam Altman at summit
The immediate fallout
OpenAI made chief technology officer Mira Murati interim CEO.
But as hundreds of staff made their displeasure about Altman’s sacking known, she made attempts to secure his stunning return to stave off the revolt.
“OpenAI is nothing without its people,” many employees wrote together on X – including Ms Murati herself.
Mr Altman was reportedly keen on the idea of returning. His brother Jack, also a start-up CEO, of HR firm Lattice, warned his detractors they were “betting against the wrong guy”.
But by Sunday, Mr Altman and Mr Brockman had joined OpenAI investor Microsoft to lead an AI research team.
Bloomberg reported the tech giant’s CEO Satya Nadella was “furious” and blindsided about the ousting.
OpenAI responded by hiring Emmett Shear, the former boss of streaming site Twitch, as Mr Altman’s replacement.
But the sense of panic at OpenAI was obvious, as more than 500 employees signed a letter threatening to quit.
Nothing encapsulated the chaos more than Mr Sutskever signing, saying he “deeply regrets” the board’s decision.
Altman’s homecoming
Despite joining Microsoft, Mr Altman left the door open for a return to OpenAI.
The two companies were already closely aligned, with the Windows maker investing $10bn in it earlier this year and using its GPT tech to reinvent its Bing search engine and Office products.
According to tech news site The Verge, citing multiple sources, Mr Altman and Mr Brockman were willing to return to OpenAI if the board members who staged the coup walked away.
Mr Nadella told CNBC “it’s very, very clear something has to change around governance”.
“We’ll have a good dialogue with their board on that,” he said.
Mr Altman suggested he’d stay involved with OpenAI in some capacity, posting: “We are all going to work together some way or other, and I’m so excited.”
OpenAI announced his return “in principle” on Wednesday morning (UK time) – and Mr Altman seemed to have got his way.
The company said there would be a “new initial board” of Bret Taylor, Larry Summers, and Adam D’Angelo.
“We are collaborating to figure out the details. Thank you so much for your patience through this,” it added.
Mr Summers is a former US treasury secretary, while Mr Taylor – the new chair – co-created Google Maps.
Mr Brockman will also be returning to the company.
What happens now?
Mr Altman has suggested his return means he won’t be working at Microsoft after all.
Mr Nadella appeared fine with that, saying he was “encouraged” by the changes to OpenAI’s board.
As for the old board, Mr Sutskever may be hoping his quick change of tact keeps him on side.
And then there’s Mr Shear, who will go down in history as one of Silicon Valley’s shortest-lived CEOs.
The executive, a previously self-professed AI “doomer” who has warned of its existential threat to humanity, had claimed he was not told why Mr Altman was dismissed.
“I am deeply pleased by this result,” he said of Mr Altman’s return.
“I’m glad to have been a part of the solution.”
ChatGPT launched in November 2022
Why the future of OpenAI matters
The San Francisco-based company has been around since 2015 and even then had some big names on its books, including Elon Musk.
He and Mr Altman were the first people on the board to guide the firm’s quest to develop “safe and beneficial” artificial general intelligence, which refers to super-powerful AI capable of outperforming humans in a number of tasks
But it wasn’t until November 2022 that OpenAI was thrust into mainstream attention thanks to ChatGPT, attracting more than 100 million users in just a few months.
With AI tipped to have a similarly transformative impact on the world as the Industrial Revolution, Mr Altman has been rubbing shoulders with some of the world’s most powerful politicians as he looks to help shape potential regulation.
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Will AI mean ‘no job is needed’?
Mr Altman hasn’t been shy of warning about the risks of AI, but is undoubtedly committed to pushing the boundaries and, perhaps more significantly to the drama of recent days, maximising its commercial potential.
The OpenAI developer conference he appeared at before his sacking was all about empowering third parties to leverage the firm’s GPT tech in their products – even building their own digital assistants.
And in September, the Financial Times reported ex-Apple designer Jony Ive was in talks with OpenAI to build the “iPhone of AI”.
Such projects would go against OpenAI’s non-profit origins. The firm launched a profit-focused arm in 2019, but it didn’t go down well with some of its original investors – including Musk, who quit.
Swapping Mr Altman for Mr Shear, who previously said he’s “in favour of slowing down” AI development, looked like a sign OpenAI wanted to return to its roots.
One thing we should all hope slows down is the drama surrounding Mr Altman’s employment – a saga not even ChatGPT could have written, and one that sent one of the world’s most influential companies into meltdown.
It’s 5.30am, but the car park outside a laundrette in south central Los Angeles is already bustling.
A woman is setting up a stand selling tacos on the pavement and the sun is beginning to rise behind the palm trees.
A group of seven women and two men are gathered in a circle, most wearing khaki green t-shirts.
The leader, a man named Francisco “Chavo” Romero, begins by asking how everyone is feeling. “Angry,” a few of them respond. “Proud of the community for pushing back,” says another.
Ron, a high school history teacher, issues a rallying cry. “This is like Vietnam,” he says. “We’re taking losses, but in the end we’re going to win. It’s a war.”
Francisco ‘Chavo’ Romero leads a volunteer group, attempting to warn people ahead of ICE raids
This is what the resistance against Donald Trump’s immigration policy looks like here. In the past month, immigration and customs enforcement agents – known as ICE – have intensified their raids on homes and workplaces across Los Angeles.
Since the beginning of June, nearly 2,800 undocumented immigrants have been arrested in the city, according to the Department of Homeland Security. The previous monthly high was just over 850 arrests in May this year.
Police use tear gas against protesters, angry at a recent immigration raid at a farm in Camarillo, California. Pic: AP
Videos have circulated online of people being tackled to the ground in the car park of DIY shops, in car washes and outside homes. The videos have prompted outrage, protests and a fightback.
“Chavo” and Ron belong to a group of organised volunteers called Union del Barrio. Every morning, a group of them meet, mostly in areas which have high immigrant populations.
The day I meet them, they’re in an area of LA which is heavily Latino. Armed with walkie talkies to communicate with each other, megaphones to warn the community and leaflets to raise awareness they set out in cars in different directions.
A volunteer from Union del Barrio shows Sky’s Martha Kelner how they try to stay one step ahead of ICE agents
They’re looking for cars used by ICE agents to monitor “targets”.
“That vehicle looks a little suspicious,” says Ron, pointing out a white SUV with blacked-out windows, “but there’s nobody in it”.
An elderly Latino man is standing on a street corner, cutting fruit to sell at his stall. “He’s the exact target that they’re looking for,” Ron says. “That’s what they’re doing now. The low-hanging fruit, the easy victim. And so that is proving to be more successful for their quotas.”
This man, selling fruit on a street corner in LA, is a potential target of immigration agents
In the end, it turns out to be a quiet morning in this part of LA, no brewing immigration operations. But elsewhere in the city, dawn raids are happening.
ICE agents are under pressure from the White House to boost their deportation numbers in line with Donald Trump’s campaign promise to crack down on illegal immigration.
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In June, tear gas and rubber bullets were fired at protestors demonstrating against immigration raids
Maria’s husband Javier was one of those arrested in LA. He came to the United States from Mexico when he was 19 and is now 58.
The couple have three grown-up children and two grandchildren. But Javier’s work permit expired two years ago, according to Maria and so he was living here illegally.
Maria’s husband Javier was arrested after his work permit expired
She shows me a video taken last month when Javier was at work at a car wash in Pomona, an area of LA. He is being handcuffed and arrested by armed and masked ICE agents, forced into a car. He is now being held at a detention centre two hours away.
“I know they’re doing their job,” she says, “but it’s like, ‘you don’t have to do it like that.’ Getting them and, you know, forcing people and pushing them down on the ground. They’re not animals.”
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US troops accused of ‘political stunt’ after park raid
Maria wipes away tears as she explains the impact of his absence for the past four weeks. “It’s been so hard without him,” she says. “You feel alone when you get used to somebody and he’s not there any more. We’ve never been apart for as long as this.”
The family have a lawyer and is appealing for him to remain in the US, but Maria fears he will be sent back to Mexico or even a third country.
Maria fears her husband, who has lived in the US for nearly 40 years, will be sent back to Mexico
“I don’t know what to say to my grandkids because the oldest one, who is five was very attached to his papas, as he calls him. And he’s asking me, ‘When is papa coming home?’ and I don’t know what to say. He’s not a criminal.”
The fear in immigrant communities can be measured by the empty restaurant booths and streets that are far quieter than usual.
People in LA are being asked to report sightings of ICE officials so others can be warned
I meet Soledad at the Mexican restaurant she owns in Hollywood. When I arrive, she’s watching the local news on the TV as yet another raid unfolds at a nearby farm.
She’s shaking her head as ICE agents face off with protesters and military helicopters hover overhead. “I am scared. I am very scared,” she says.
All of her eight employees are undocumented, and four of them are too scared to come into work, she says, in case they get arrested. The process to get papers, she says, is too long and too expensive.
Read more from Sky News:
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Soledad, who owns a Mexican restaurant, plans to hide her illegal workers if immigration officials arrive
“They call me and tell me they are too afraid to come in because immigration is around,” she says.
“I have to work double shifts to be able to make up for their hours, and yes, I am very desperate, and sometimes I cry… We have no sales, and no money to pay their wages.”
There is just one woman eating fajitas at a booth, where there would usually be a lunchtime rush. People are chilled by the raids.
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Soledad says she plans to hide her illegal workers if immigration officials arrive.
“I’ve told them, get inside the fridge, hide behind the stove, climb up where we have a space to store boxes, do not run because they will hunt you down.”
The White House says they’re protecting the country from criminals. ICE agents have been shot at while carrying out operations, their work becoming more dangerous by the day.
The tension here is ratcheting up. Deportation numbers are rising too. But the order from Donald Trump is to arrest even more people living here illegally.
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