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OpenAI Board Stands Firm in Decision to Dismiss CEO Sam Altman despite Lack of Progress


Nov 20, 2023

OpenAI’s board of directors stood by its decision to oust its former CEO Sam Altman, according to an internal memo sent to company staff Sunday night, the NYtimes reports. OpenAI named Emmett Shear, a former executive at Twitch, as its new interim CEO. The board asserts in the memo that Shear has the “skills and expertise to move OpenAI forward.” The board stands firmly behind its decision as the only path to advance and defend OpenAI’s mission, the memo said, referring to Altman’s dismissal on Friday. It was signed by all four directors on the company’s board: Adam D’Angelo, Helen Toner, Ilya Sutskever, and Tasha McCauley. Simply put, Sam’s behavior and lack of transparency in his interactions with the board undermined the board’s ability to effectively oversee the company in the way that was authorized – the letter says.

Altman’s dismissal stunned the technology industry and OpenAI’s investors, including Microsoft, Sequoia Capital and Thrive Capital. Microsoft, which has invested more than $13 billion in OpenAI, learned of Altman’s departure only a minute before it was announced. The board did not list the specific incidents that caused Altman to be fired. Instead, it argued that Altman had “lost the confidence of the board” and that his removal “is necessary to preserve the ability of the board to carry out its responsibilities and advance the mission of this organization.”- The most important thing is that every CEO be honest and transparent with its board of directors – the letter says.

By Editor

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