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America March 9, 2024 3 mins read

OpenAI Board Changes, An Investigation and a Lawsuit

America ı By Jackie Allen

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Open AI Board

On Friday the company announced that CEO Sam Altman will rejoin the OpenAI Board. The company also welcomed three new members on to its board.

 The internal investigation into the events leading up to Sam Altman's ouster was completed by U.S. law firm WilmerHale.

The three new board members will replace three who had recently resigned.

In November, the board of OpenAI made the decision to remove Altman from his position, leading to a cascade of resignations and threats of resignations.

 This included a powerful open letter signed by nearly all of OpenAI's employees, as well as significant concern from investors, notably Microsoft. 

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OpenAI Board Shifts

Within a week, Altman returned to his role within the company. And Board members Helen Toner, Tasha McCauley, and Ilya Sutskever, who had supported Altman's removal, stepped down.

Adam D'Angelo, despite also initially voting for Altman's ousting, remained in his position on the board.

At the heart of this restructuring lies the investigation conducted by WilmerHale, which started in December. 

The inquiry has been called “exhaustive.” The law firm had numerous interviews and document reviews, aimed to address concerns surrounding trust and governance within the organization. 

While the investigation did not yield a public report, its findings underscored a breakdown in trust between prior board members and OpenAI's co-founders, Sam Altman and Greg Brockman.

Bret Taylor, chair of OpenAI's board, affirmed the board's unified support for Altman and Brockman, emphasizing their roles in shaping the organization's trajectory. 

Elon Musk Lawsuit

The repercussions of internal strife extend beyond the confines of OpenAI's boardroom. Legal challenges, including a lawsuit filed by Elon Musk against Altman and Brockman, are keeping the spotlight on the breakthrough AAI company.

Musk alleges breaches of contract and fiduciary duty, citing concerns over OpenAI's perceived alignment with Microsoft, its principal investor. And its non-profit mission.

Musk claims that OpenAI's transition towards closed-source development contradicts its founding principles of openness and collaboration.

This divergence from its original mission was spelled out in a 2015 agreement. Musk as the biggest original investor, is raising questions about the organization's current trajectory and independence.

AI Innovation

In response, OpenAI has staunchly defended its position, highlighting past correspondence with Musk that purportedly supports its strategic evolution. 

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Jackie Allen
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Jackie Allen

Jackie is a freelance journalist and technology geek. She worked as a telecom project director for AT&T and BellSouth. Before joining the USA Herald she has written books, articles, blogs and whitepapers. Her clients include Samsung and other technology companies.

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