OpenAI Reinstates Sam Altman, Strengthens Board After Internal Turmoil

OpenAI has brought back Sam Altman to its board and expressed "full confidence" in his leadership, undoing all the chaos of the past four months.

Altman got back following an external investigation into the ChatGPT severe stories in November.

OpenAI Reinstates Sam Altman to Board After Probe

WASHINGTON, DC - SEPTEMBER 13: OpenAI CEO Sam Altman talks to reporters as he arrives for the "AI Insight Forum" outside the Kennedy Caucus Room in the Russell Senate Office Building on Capitol Hill on September 13, 2023 in Washington, DC. Lawmakers are seeking input from business leaders in the artificial intelligence sector, and some of their most ardent opponents, for writing legislation governing the rapidly evolving technology.
(Photo : Chip Somodevilla/Getty Images)

San Francisco-based artificial intelligence company OpenAI has reinstated Sam Altman to its board. Altman, previously ousted in November, has been brought back after an external investigation into the dramatic saga. The company engaged the law firm WilmerHale to probe the circumstances that led to Altman's abrupt firing and subsequent rehiring.

Altman shared his relief at the resolution of the situation, recognizing the difficulties caused by people leaking information to damage the company. He reflected on what he had learned from the experience and expressed regret for a disagreement with a former board member, recognizing that it could have been managed more gracefully and thoughtfully.

Two board members who initially voted to terminate Altman, Helen Toner and Tasha McCauley, wished the new board success while emphasizing the importance of accountability in building potentially world-changing technology. They stressed that deception, manipulation, and resistance to thorough oversight should be deemed unacceptable.

OpenAI said not much about what happened before Altman was fired on November 17 for more than three months. The statement made on that day mentioned Altman's inconsistent communication, which was seen as a barrier to the board's duties. Altman and the board chairman, Greg Brockman, were removed from the board, with Brockman subsequently resigning as the company's president, according to Business Today.

OpenAI's Governance Challenges

OpenAI's varied governance structure is a major contributor to the issues that arise inside the organization. The corporation was first established as a charitable organization with the goal of creating artificial intelligence (AI) that would be beneficial to mankind in the future. However, it has now evolved into a fast expanding business that is still overseen by a nonprofit board.

The investigation concluded that the prior board acted within its discretion, determining that Altman's conduct did not warrant removal. Both Altman and Brockman were affirmed as the right leaders for the company. Following their ousting and subsequent return, Altman and Brockman did not regain their board seats, but an initial new board was formed, led by Bret Taylor. This board includes former US Treasury Secretary Larry Summers and Quora CEO Adam D'Angelo.

The company OpenAI has made a pledge to make governance shifts with the intention of enhancing its governance structure, adopting new principles for corporate governance, and strengthening rules that are connected to problems of interest. In addition to this, the organization intends to establish more board committees and a whistleblower hotline that will allow for anonymous reporting.

In spite of these modifications, OpenAI is still facing continued difficulties, one of which being a lawsuit that was submitted by Elon Musk, an essential early investor and co-chair of the board. As a result of Musk's allegations that the company's essential objective was betrayed in order to pursue money, OpenAI's governance structure, research transparency, and efforts to develop artificial general intelligence have come under examination, ABC News reported.