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Ex-OpenAI Director Reid Hoffman Claims that We still Don’t “fully understand” Why the Board Forced Altman Out

Three weeks after the sudden departure and subsequent return of OpenAI CEO Sam Altman, former director Reid Hoffman expressed his ongoing puzzlement about the events at Wired’s LiveWired conference. Altman was briefly ousted from his role without a specific reason provided by OpenAI’s board, leading to significant upheaval within the company. The exact circumstances surrounding Altman’s temporary removal remain unclear, with various reports suggesting reasons such as his pursuit of funding for a new AI chip startup, concerns about the risks associated with OpenAI’s technology, a technical breakthrough that the board learned about, and a reported disagreement between Altman and director Helen Toner.

Hoffman, who was one of OpenAI’s original donors and joined Microsoft’s board after its acquisition of LinkedIn, expressed his confusion about the situation. Despite stepping down from OpenAI’s board in March, he acknowledged not having full clarity on the events that transpired. Altman’s reinstatement followed a significant push by top investors and the threat of a mass exodus among OpenAI’s workforce.

The mystery surrounding Altman’s brief exit has left an air of uncertainty around OpenAI, one of the world’s highly valued startups. The company continues to operate its popular ChatGPT chatbot and maintain partnerships with major companies through Microsoft.

Hoffman highlighted Microsoft CEO Satya Nadella’s offer to hire Altman and his colleagues at OpenAI for a new advanced AI research group, but Altman was quickly reinstated. Hoffman praised Nadella’s leadership style, describing him as a high-integrity, genuine leader who likely adopted an attitude of “If it isn’t broke, don’t fix it.”

Despite the turbulence, Hoffman believes that having Altman back as CEO is a positive development for OpenAI. The relationship between OpenAI and Microsoft, which provides cloud infrastructure and integrates OpenAI services into its software, will likely be studied in business schools, according to Hoffman.

The period of uncertainty has allowed rivals, such as Amazon’s cloud unit, to leverage the situation. Amazon’s Adam Selipsky highlighted the importance of not being tied to a single provider of AI models in light of OpenAI’s recent events.

The circumstances surrounding Altman’s temporary departure from OpenAI remain a topic of speculation and intrigue within the tech industry.

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