A Landmark Week in AI History
The week of November 17 to November 24, 2023, marked an unprecedented period of tumult for OpenAI, one of the world’s foremost artificial intelligence research and deployment companies. This dramatic seven-day span, often referred to as “The Sam Altman Saga,” saw the sudden removal of its charismatic CEO, a near-complete staff revolt, and his eventual reinstatement, sending shockwaves across the global technology landscape. For a company at the vanguard of AI development, known for breakthroughs like ChatGPT, the internal power struggle laid bare the unique governance challenges and philosophical divides inherent in pursuing advanced AI while balancing safety and commercial objectives. The events underscored the immense influence of key individuals and the fragility of leadership structures in organizations guiding humanity’s technological frontier.
The Crisis Erupts: November 17th
The crisis began abruptly on Friday, November 17, 2023. OpenAI’s non-profit board of directors announced that Sam Altman was being “removed” from his position as CEO. In a blog post, the board stated, “Mr. Altman’s departure follows a deliberative review process by the board, which concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities” [OpenAI Blog - Board Statement]. The board emphasized its commitment to the company’s mission to ensure that artificial general intelligence (AGI) “benefits all of humanity.”
Simultaneously, Greg Brockman, then President of OpenAI and Chairman of the board, announced his resignation in solidarity with Altman. Brockman stated that he was “shocked and saddened” by the board’s decision [The Verge Coverage]. Mira Murati, OpenAI’s Chief Technology Officer, was initially appointed interim CEO. The immediate industry reaction was one of stunned disbelief, given Altman’s public profile as the face of OpenAI and a leading voice in AI development.
A Weekend of Uncertainty and Negotiations
The weekend proved to be a whirlwind of intense negotiations and escalating uncertainty. On Saturday, November 18, reports emerged that Altman, alongside Brockman, was in discussions with the remaining board members to potentially return to OpenAI. This indicated significant internal pressure and widespread support for Altman among employees and investors.
However, these talks ultimately collapsed. By Sunday, November 19, the board had named Emmett Shear, co-founder and former CEO of Twitch, as the new interim CEO. Shear’s appointment signaled a hardening of the board’s stance and further complicated Altman’s path back to his leadership role. Amidst this turmoil, a critical development emerged: Microsoft, a major investor and partner in OpenAI, reportedly offered to hire Altman and his entire team to lead a new advanced AI research unit within Microsoft, a move that would have dramatically reshaped the AI competitive landscape [The New York Times Investigation]. This offer provided a compelling alternative for Altman and rallied significant support from OpenAI staff.
The Employee Uprising: November 20th
The situation reached its dramatic peak on Monday, November 20. In an unprecedented display of internal solidarity, a vast majority of OpenAI’s 770 employees signed an open letter demanding the resignation of the existing board and the reinstatement of Sam Altman. According to reports, “nearly all” or “more than 95%” of the company’s staff signed the letter, threatening to resign and join Altman at Microsoft if their demands were not met [The New York Times Investigation, The Verge Coverage].
Among the signatories was Ilya Sutskever, OpenAI’s chief scientist and a board member who had initially voted to fire Altman. Sutskever later expressed deep regret for his involvement, stating on social media, “I deeply regret my participation in the board’s actions. I never intended to harm OpenAI. I love everything we’ve built together and I will do everything I can to reunite the company” [The Verge Coverage]. This public reversal by a key board member, coupled with the overwhelming employee support, exerted immense pressure on the remaining board.
Resolution: Reinstatement and a New Board
The extraordinary pressure from employees, investors, and key partners like Microsoft ultimately led to a resolution. On Tuesday, November 21, after days of intense negotiations, OpenAI announced that Sam Altman would return as CEO. The agreement included the formation of a “new, initial board” composed of Bret Taylor (as chair), Larry Summers, and existing board member Adam D’Angelo [OpenAI Blog - Board Statement]. Helen Toner and Tasha McCauley, two of the board members who had initially voted to remove Altman, departed from the board as part of the agreement. The company stated its intention was to “transition to a new, diverse board of up to 9 people” in the future.
Immediate Industry Reaction and Competitive Context
The rapid sequence of events captivated the technology world. The crisis highlighted the inherent tensions between OpenAI’s stated mission to develop safe AGI for humanity and the commercial pressures and rapid scaling required to compete in the fiercely competitive AI sector. While no explicit details of these tensions were released by the board during the crisis, observers noted the philosophical differences that could arise in such a unique corporate structure.
During this period, OpenAI stood as a leader in generative AI, primarily due to the widespread adoption and capabilities of ChatGPT. Competitors such as Google (with its DeepMind division), Anthropic, and Meta were also actively developing advanced AI models. The instability at OpenAI during this week raised questions about the future of its research trajectory, talent retention, and its ability to maintain its leading edge. Microsoft’s swift action to offer a haven for Altman and his team underscored the immense value placed on top AI talent and research capabilities within the industry. The resolution of the crisis, culminating in Altman’s return and a new board structure, was widely seen as a crucial step towards stabilizing the organization and reaffirming its position at the forefront of AI innovation, at least for the immediate future.