OpenAI co-founder Ilya Sutskever said Tuesday that he’s leaving the Microsoft-backed startup.
“I am excited for what comes next — a project that is very personally meaningful to me about which I will share details in due time,” Sutskever wrote in an X post on Tuesday.
The departure comes months after OpenAI went through a leadership crisis in November involving co-founder and CEO Sam Altman.
In November, OpenAI’s board said in a statement that Altman had not been “consistently candid in his communications with the board.” The issue quickly caqme to look more complex. The Wall Street Journal and other media outlets reported that Sutskever came to focus on ensuring that artificial intelligence would not harm humans, while others, including Altman, were eager to push ahead with delivering new technology.
Almost all of OpenAI’s employees signed an open letter saying they would leave in response to the board’s action. Days later, Altman was back at the company, and board members Helen Toner, Tasha McCauley and Sutskever, who had voted to oust Altman, were out. Adam D’Angelo, who had also voted to push out Altman, stayed on the board.
When Altman was asked about Sutskever’s status on a Zoom call with reporters at the time, he said there were no updates to share. “I love Ilya… I hope we work together for the rest of our careers, my career, whatever,” Altman said. “Nothing to announce today.”
On Tuesday, Altman shared his thoughts as Sutskever leaves.
“This is very sad to me; Ilya is easily one of the greatest minds of our generation, a guiding light of our field, and a dear friend,” Altman wrote on X. “His brilliance and vision are well known; his warmth and compassion are less well known but no less important.” Altman said research director Jakub Pachocki, who has been at OpenAI since 2017, will replace Sutskever as chief scientist.
OpenAI has announced new board members, including former Salesforce co-CEO Bret Taylor and former Treasury Secretary Larry Summers. Microsoft obtained a nonvoting board observer position.
In March, OpenAI announced its new board and the wrap-up of an internal investigation by U.S. law firm WilmerHale into the events leading up to Altman’s ouster. Altman rejoined OpenAI’s board, and three new board members were announced: Dr. Sue Desmond-Hellmann, former CEO of the Bill and Melinda Gates Foundation; Nicole Seligman, former EVP and Global General Counsel of Sony and President of Sony Entertainment; and Fidji Simo, CEO and Chair of Instacart.
The three new members will “work closely with current board members Adam D’Angelo, Larry Summers and Bret Taylor as well as Greg, Sam, and OpenAI’s senior management,” according to a company release in March.
News of Sutskever’s departure comes a day after OpenAI launched a new AI model and desktop version of ChatGPT, along with an updated user interface, the company’s latest effort to expand use of its popular chatbot.
The update brings the GPT-4 model to everyone, including OpenAI’s free users, technology chief Mira Murati said Monday in a livestreamed event. She added that the new model, GPT-4o, is “much faster,” with improved capabilities in text, video and audio. OpenAI said it eventually plans to allow users to video chat with ChatGPT. “This is the first time that we are really making a huge step forward when it comes to the ease of use,” Murati said.
In 2015, Altman and Tesla CEO Elon Musk, another OpenAI co-founder, wanted Sutskever, then a research scientist at Google, to become the budding startup’s top scientist, according to the lawsuit Musk filed against OpenAI in March.
“Dr. Sutskever went back and forth on whether to leave Google and join the project, but it was ultimately a call from Mr. Musk on the day OpenAI, Inc. was publicly announced that convinced Dr. Sutskever to commit to joining the project as OpenAI, Inc.’s Chief Scientist,” the legal filing said.
Google was on Tuesday hit with an EU antitrust investigation over its use of online content for AI purposes, marking the latest in a series of crackdowns from the bloc on regulating U.S. big tech companies.
The European Commission said it was investigating whether Google had breached EU competition rules by using the content of web publishers, as well as content uploaded on the online video-sharing platform YouTube, for AI purposes.
The probe will examine whether Google is distorting competition by imposing unfair terms and conditions on publishers and content creators, or by granting itself privileged access to that content and placing developers of rival AI models at a disadvantage, the Commission said.
“AI is bringing remarkable innovation and many benefits for people and businesses across Europe, but this progress cannot come at the expense of the principles at the heart of our societies,” said the bloc’s commissioner for competition Teresa Ribera.
“This is why we are investigating whether Google may have imposed unfair terms and conditions on publishers and content creators, while placing rival AI models developers at a disadvantage, in breach of EU competition rules.”
The Commission said it would investigate to what extent the generation of AI Overviews and AI Mode by Google is based on web publishers’ content without appropriate compensation and without the possibility for publishers to refuse without losing access to Google Search.
In September, the EU fined Google nearly 3 billion euros ($3.4 billion) for breaching antitrust rules by distorting competition in the advertising technology industry.
At the time, Google’s global head of regulatory affairs, Lee-Anne Mulholland said the EU decision was “wrong” and the firm would appeal. “There’s nothing anticompetitive in providing services for ad buyers and sellers, and there are more alternatives to our services than ever before,” she said.
EU vs. U.S. big tech
The move follows a slew of actions the bloc has taken against U.S big tech companies in recent days.
The Commission hit Elon Musk’s social media app X with a 120-million-euro ($140 million) fine on Friday for breaching transparency obligations around its advertising repository and “the deceptive design of its ‘blue checkmark.'”
Musk called for the European Union to be abolished in response, with key Republican officials also criticizing the decision.
Last week the EU also announced it had opened an antitrust investigation into Meta over its new policy on allowing AI providers’ access to WhatsApp, which it said may breach the bloc’s competition rules.
Signage for Tata Electronics Pvt Ltd. at the company’s factory in Hosur, Tamil Nadu, India, on Tuesday, Aug. 5, 2025.
Bloomberg | Bloomberg | Getty Images
Tata Electronics has lined up American chip designer Intel as a prospective customer as the division of Mumbai-based conglomerate Tata Group works to expand India’s domestic electronics and semiconductor supply chain.
Under a Memorandum of Understanding, the companies will explore the manufacturing and packaging of Intel products for local markets at Tata Electronics’ upcoming plants.
Intel and Tata also plan to assess ways to rapidly scale tailored artificial intelligence PC solutions for consumers and businesses in India.
In a press release on Monday, Tata said that the collaboration marks a pivotal step towards developing a resilient, India-based electronics and semiconductor supply chain.
“Together [with Intel], we will drive an expanded technology ecosystem and deliver leading semiconductors and systems solutions, positioning us well to capture the large and growing AI opportunity,” said N Chandrasekaran, Chairman of Tata Sons, the principal investment holding company of Tata companies.
Tata Electronics, established in 2020, has been investing billions to build India’s first pure-play foundry. The facility will manufacture semiconductor products for the AI, automotive, computing and data storage industries, according to Tata Electronics.
The firm is also building new facilities for assembly and testing.
India, despite being one of the world’s largest consumers of electronics, lacks chip design or fabrication capabilities.
However, the Indian government has been working to change that as part of efforts to reduce dependence on chip imports and capture a bigger share of the global electronics market, which is shifting away from China.
Intel CEO Lip-Bu Tan said the partnership with Intel was a “tremendous opportunity” to rapidly grow in one of the world’s fastest-growing computer markets, fueled by rising PC demand and rapid AI adoption across India.
The company is “here to finish what we started,” CEO David Ellison told CNBC, upping the ante with a $30-per-share, all-cash offer compared to Netflix’s $27.75-per-share, cash-and-stock offer for WBD’s streaming and studio assets.
Investors were certainly pleased, sending Paramount shares 9% higher and WBD’s stock up 4.4%.
Another development that traders cheered was U.S. President Donald Trump permitting Nvidia to export its more advanced H200 artificial intelligence chips to “approved customers” in China and other countries — so long as some of that money flows back to the U.S. Nvidia shares rose about 2% in extended trading.
Major U.S. indexes, however, fell overnight, as investors awaited the Federal Reserve’s final rate-setting meeting of the year on Wednesday stateside. Markets are expecting a nearly 90% chance of a quarter-point cut, according to the CME FedWatch tool.
Rate-cut hopes have buoyed stocks. “The market action you’ve seen the last one or two weeks is kind of essentially baking in the very high likelihood of a 25 basis point cut,” said Stephen Kolano, chief investment officer at Integrated Partners.
But that means a potential downside is deeper if things don’t go as expected.
“For some very unlikely reason, if they don’t cut, forget it. I think markets are down 2% to 3%,” Kolano added.
In that case, investors will be waiting, impatiently, for the Fed meeting next year — hoping for a more satisfying conclusion.
Trump allows Nvidia to sell H200 chip to China. But that’s only if the U.S. gets a 25% sales cut, the White House leader said in a Truth Social post on Monday. Trump added that Chinese President Xi Jinping had “responded positively” to the proposal.
China’s trade surplus roared above $1 trillion in November for the first time ever, despite the ongoing global trade war that has resulted in a steep drop in exports to the U.S. In the first 11 months this year, China’s overall exports grew 5.4% compared to the same period in 2024 while imports fell 0.6%.
The rebound in export growth would help mitigate the drag from weak domestic demand, putting the economy on track to deliver the “around 5%” growth target this year, said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management.
