Hi, Scott Lovejoy and Brandon Goldberg here with another weekly tip for improving your life and your business with AI. Our focus for November is better prompting, but we’re going to break into that to talk about the roller coaster of events happening RIGHT NOW at OpenAI.

Over the weekend, OpenAI founder Sam Altman was fired as CEO by the board, but the story gets stranger by the minute!

Things are changing so fast, it’s hard to know where we stand, but here’s our best summary of events to this point.

WHAT HAPPENED AT OPENAI OVER THE WEEKEND?

OpenAI, known for its AI chatbots ChatGPT and DALL-E, experienced a chaotic weekend, starting with a bizarre press release announcing the ousting of CEO and co-founder Sam Altman. The release, by four board members, cited "communications" issues but didn't provide specifics. Altman, a prominent figure in Silicon Valley, was surprisingly removed from his position, leading to intense speculation and drama within the shocked tech community.

The decision to fire Altman was made by four board members, excluding Altman and Greg Brockman, another co-founder. These members included Quora CEO Adam D’Angelo, entrepreneur Tasha McCauley, Helen Toner of Georgetown Center for Security and Emerging Technology, and OpenAI’s chief scientist Ilya Sutskever. The group's decision was influenced by concerns over Altman's focus on growth and external funding, contrasting with Sutskever's emphasis on AI safety.

Following the announcement, OpenAI's president Greg Brockman also stepped down as chairman but remained with the company. He and Altman were blindsided by the decision, which led to Brockman's initial intention to quit and subsequent resignations from senior researchers.

The situation was further complicated by the organization's unique structure, a mix of non-profit and for-profit, with a small board maintaining major control. This setup, coupled with ideological differences within the company, contributed to the chaos.

Microsoft, a major investor in OpenAI, was reportedly unaware of the impending firing, leading to a drop in its share price. The turmoil within OpenAI was met with discontent from employees, who questioned the board's decision and demanded the return of Altman and Brockman in a public letter and demonstration of unity on X (formerly known as Twitter).

In a surprising turn of events, the board nearly reinstated Altman and Brockman but then hesitated. Emmett Shear, former Twitch CEO known for his cautious stance on AI development, was then appointed as interim CEO. However, the decision did not sit well with the employees, who threatened mass resignation and demanded the board's resignation. Even Shear himself publicly sided with Altman!

Despite the upheaval, Microsoft announced a collaboration with Altman, Brockman, and their team for a new AI research initiative, signaling a potential shift away from OpenAI and leading to a bevy of headlines announcing that Altman and Brockman had taken jobs at Microsoft.

But wait! It’s not over yet…

In the wee hours of the morning on Wednesday, OpenAI announced a deal for Sam Altman to return as CEO, marking a significant turn in the company's upheaval. The new board will be chaired by Bret Taylor, former co-CEO of Salesforce, and include notable members like former Treasury Secretary Larry Summers and current board member Adam D'Angelo.

The reinstatement of Altman sees the departure of independent directors Tasha McCauley and Helen Toner, as well as Ilya Sutskever, OpenAI's chief scientist. Greg Brockman, OpenAI's president and former board chair, also announced his return to the company.

A key element of this agreement is an independent investigation into the circumstances leading to Altman's initial dismissal. Last Friday, OpenAI cited issues with Altman's "candidness in communications" as the reason for his firing, though they clarified later that no malfeasance was involved.

WHAT DOES IT ALL MEAN FOR THE FUTURE OF OPENAI?

OpenAI, initially founded as a nonprofit, has been grappling with the pace of deploying and commercializing AI technologies, especially after ChatGPT's success. Altman's return appears to reaffirm the direction he has set since 2019 when OpenAI formed a for-profit subsidiary to accept significant investments, including from Microsoft, for AI development.

Statements from Altman, Microsoft CEO Satya Nadella, and Brockman reflect relief and optimism about the future direction of OpenAI. Nadella expressed encouragement over the board changes, viewing them as a step towards more effective governance. Brockman's focus is now on returning to his coding work at OpenAI. This resolution, while stabilizing the immediate crisis, doesn't end the broader debate about the industry's rapid AI advancements and their implications.

The saga may not yet be over, but when you consider just how much has happened in the space of roughly 4 days, it takes your breath away!

We hope you enjoyed this TechWave roller coaster update, we’ll see you next week! In the meantime, let us know how you’ve used ChatGPT to elevate your AI workflow!

-Scott and Brandon