Sam Altman Returns as CEO of OpenAI Amid Board Restructuring and Microsoft's Response

Sam Altman is rejoining OpenAI as its CEO, according to the AI startup's announcement on Wednesday. This marks the conclusion of a vigorous five-day period of talks, discussions, and persuasion that ensued after Altman's unexpected removal from the startup last week.

OpenAI, the highest-valued startup in the United States, has disclosed that it has secured an "agreement in principle" for Sam Altman to resume his role. In addition to Altman's return, the company is restructuring its board by removing several members who came under significant scrutiny for their decisions in the preceding week.

The revamped board at the AI startup will now include former Salesforce CEO Bret Taylor, former US Secretary of the Treasury Larry Summers, and Quora founder Adam D’Angelo, as announced by the company. Bret Taylor will take on the role of the board's chair, according to the startup's statement.

Microsoft, holding approximately 49% ownership in OpenAI, was surprised by OpenAI's recent decision. In response, Microsoft promptly recruited Sam Altman to lead a new AI group within the software conglomerate. Greg Brockman, the former President of OpenAI, and numerous other members of the startup resigned in objection to the prior decision made by the OpenAI board.

“I love OpenAI, and everything I’ve done over the past few days has been in service of keeping this team and its mission together. When I decided to join Microsoft on Sunday evening, it was clear that was the best path for me and the team. With the new board and with Satya’s support, I’m looking forward to returning to OpenAI, and building on our strong partnership with Microsoft,” Altman said in a statement posted on X.

Microsoft CEO Satya Nadella, who had conveyed disappointment regarding the decision of the OpenAI board last week and had committed to preventing future surprises, stated on Wednesday that he finds encouragement in the recent changes made to the OpenAI board.

“We believe this is a first essential step on a path to more stable, well-informed, and effective governance. Sam, Greg, and I have talked and agreed they have a key role to play along with the OAI leadership team in ensuring OAI continues to thrive and build on its mission. We look forward to building on our strong partnership and delivering the value of this next generation of AI to our customers and partners.”

The previous OpenAI board, comprised of figures such as chief scientist Ilya Sutskever, independent director Adam D’Angelo, technology entrepreneur Tasha McCauley, and Helen Toner from the Georgetown Center for Security and Emerging Technology, came under significant public scrutiny for their sudden decision. Despite the scrutiny, the board did not provide a thorough explanation for their actions. Frustration with the previous board led several OpenAI investors to investigate potential legal actions against the board members, as reported by Reuters on Tuesday.

Emmett Shear, the former CEO of Twitch who was named interim leader of OpenAI on Sunday, expressed satisfaction with the company's recent decision. He stated, "Coming into OpenAI, I wasn't sure what the right path would be. This was the pathway that maximized safety alongside doing right by all stakeholders involved. I'm glad to have been a part of the solution," in a post on X.