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<ul class="summary-list"><li><keyword id="19918823" type="General" weightage="100" keywordseo="OpenAI" source="keywords" meta.keywordsubtype="org" meta.entityname="OpenAI" meta.hostid="261" meta.entityid="OpenAI">OpenAI</keyword> has had a wild week.</li><li>The company announced governance changes. And then key figures like <keyword id="20948500" type="General" weightage="20" keywordseo="Mira-Murati" source="keywords">Mira Murati</keyword> and <keyword id="23152757" type="General" weightage="20" keywordseo="Bob-McGrew" source="keywords">Bob McGrew</keyword> left.</li></ul>Tech rivalries are always a hot topic on X, and on Friday, an <keyword id="20837420" type="General" weightage="20" keywordseo="Anthropic" source="keywords" meta.keywordsubtype="org" meta.entityname="Anthropic" meta.hostid="261" meta.entityid="Anthropic">Anthropic</keyword> executive couldn't help but take a jab at OpenAI. The social media scuffle between the two companies follows a wild week for OpenAI. On Thursday, the company announced it was overhauling its governance structure in order to become a <a target="_blank" class="" href="https://www.businessinsider.com/open-ai-sam-altman-equity-stake-valuation-private-nonprofit-9">for-profit benefit corporation</a> no longer under the control of the company's nonprofit arm. It also said it would give its CEO, <a target="_blank" href="https://www.businessinsider.com/open-ai-sam-altman-equity-stake-valuation-private-nonprofit-9">Sam Altman</a>, equity in the company for the first time. The changes marked a full turn from the early days of OpenAI when it was a little-known nonprofit. Its chief technology officer, Mira Murati, who briefly filled in for Altman during his surprise ousting last year, then <a target="_blank" href="https://www.businessinsider.com/mira-murati-openai-cto-leaving-executive-memo-staff-2024-9">announced she was leaving</a>. Key researchers Bob McGrew and Barret Zoph said they were leaving soon after. It's unclear if the departures were related to the governance changes, but tensions between OpenAI execs over its approach to developing artificial general intelligence, and its commitment to safety, a core part of the nonprofit's mission, have repeatedly spilled into public view. OpenAI cofounder <keyword id="23377490" type="General" weightage="20" keywordseo="Wojciech-Zaremba" source="keywords">Wojciech Zaremba</keyword> took to X on Friday to wax poetic about the latest high-profile departures. He likened the exits of Murati, Zoph, and McGrew to children dying in the Middle Ages. "Their departures made me think about the hardships parents faced in the Middle Ages when 6 out of 8 children would die prematurely," he wrote. "Despite the profound loss, the parents had to accept it and find deep joy and satisfaction in the 2 who survived." Zaremba said he had "cool memories" with each of the departing employees. With Zoph, he had a "fierce conflict about compute" that served as the genesis for <a target="_blank" href="https://www.businessinsider.com/sam-altman-openai-new-o1-model-capabilities-agi-2024-9#:~:text=OpenAI%20unveiled%20o1%2C%20an%20AI,to%20reason%20more%20like%20humans.">OpenAI's latest AI model, o1</a>. He also said he had a fond memory of McGrew, who he said reprimanded him for "doing a jacuzzi with a coworker." He did not elaborate. Murati, meanwhile, was a witness to his engagement, he wrote. Sasha de Marigny, an executive at OpenAI's rival Anthropic, was not impressed by Zaremba's reminiscences and historical allusions. Just hours later she wrote on X, "Happy to report that Anthropic's co-founders all still merrily work at the company. None have been lost to Middle Age plagues or jacuzzis." Anthropic, incidentally, is home to a number of former OpenAI employees, including one of its cofounders, John Schulman, who left to join a team at Anthropic focused on developing AI technology safely. Correction: September 27, 2027 — An earlier version of this story misstated when OpenAI announced its plans to restructure. It was Thursday, not Wednesday.

Anthropic's comms chief mocks OpenAI after cofounder's bizarre tweet about jacuzzis and the Middle Ages

<ul class="summary-list"><li>Mira Murati announced her departure from OpenAI last week.</li><li>In an X post, Murati wrote, "I'm stepping away because I want to create the time and space to do my own exploration."</li></ul>Venture capitalists are clamoring to meet with Mira Murati, the former CTO of OpenAI, as Silicon Valley expects her to start her own company soon."We're trying to get in front of her," said one venture investor. "I cold-emailed her," another investor told Business Insider.Murati did not respond to a request for comment.In a X post, Murati <a target="_blank" class="" href="https://www.businessinsider.com/mira-murati-openai-cto-leaving-executive-memo-staff-2024-9">announced her departure</a> from OpenAI last week. Murati wrote, "My six-and-half years with the OpenAI team have been an extraordinary privilege…There's never an ideal time to step away from a place one cherishes, yet this moment feels right."Murati also added, "I'm stepping away because I want to create the time and space to do my own exploration."VCs have been <a target="_blank" class="" href="https://www.businessinsider.com/ai-investments-vcs-startups-valuations-2024-3">competing</a> to be among the first checks into a startup founded by former OpenAI employees. Dozens of former OpenAI staffers, including the startup's other cofounders, <a target="_blank" class="" href="https://www.businessinsider.com/former-openai-employees-who-left-launch-vc-backed-ai-startups-2024-1">have gone on to start companies over the past few years.</a> Former OpenAI chief scientist Ilya Sutskever raised $1 billion for AI research lab Safe Superintelligence, reported <a target="_blank" href="https://www.reuters.com/technology/artificial-intelligence/openai-co-founder-sutskevers-new-safety-focused-ai-startup-ssi-raises-1-billion-2024-09-04/">Reuters</a>. Andrej Karpathy started Eureka Labs focused on applying AI to education.<a target="_blank" class="" href="https://www.businessinsider.com/amazon-invests-4-billion-in-anthropic-2023-9">Anthropic was started in 2021</a> by Dario Amodei and a group of researchers within OpenAI. Aravind Srinivas, a former research scientist at OpenAI, founded the San Francisco-based AI search engine <a target="_blank" class="" href="https://www.businessinsider.com/perplexity-raising-new-funding-generative-ai-2024">Perplexity.</a>Murati joined OpenAI in 2018 to work on supercomputing strategy. She had previously worked at Tesla, focused on the electric car maker's Model X vehicle. At OpenAI, Murati oversaw the teams that developed the company's two flagship products, ChatGPT and Dall-E.In response to Murati's sudden departure, OpenAI CEO <a target="_blank" class="" href="https://www.businessinsider.com/sam-altman-openai-future-abundant-energy-intelligence-growth-2024-9">Sam Altman</a> wrote on X, "I obviously won't pretend it's natural for this one to be so abrupt, but we are not a normal company, and I think the reasons Mira explained to me (there is never a good time, anything not abrupt would have leaked, and she wanted to do this while OpenAI was in an upswing) make sense."This comes amid OpenAI's latest <a target="_blank" class="" href="https://www.businessinsider.com/openai-fundraising-150-billion-valuation-new-funding-round-altman-thrive-2024-9">fundraise of $6.5 billion.</a> Thrive Capital is leading the latest round with a $1 billion investment at a valuation of $150 billion before the investment, with SoftBank, Coatue, and Microsoft also participating, reported <a target="_blank" href="https://affiliate.insider.com?h=f904b52b37104c96afbbf0032cfadafdf6f3ce2c5e74e4595b74136eef000573&amp;postID=66fb0d20e5b54083003d2c8f&amp;postSlug=mira-murati-exits-openai-venture-capitalist-startup-2024-9&amp;site=bi&amp;u=https%3A%2F%2Fwww.theinformation.com%2Farticles%2Fsoftbank-to-invest-500-million-in-openai%3Frc%3D8tzurb">The Information</a>. OpenAI is also restructuring from a nonprofit subsidiary to a for-profit benefit corporation and planning to give Altman equity for the first time, reported <a target="_blank" class="" href="https://www.reuters.com/technology/artificial-intelligence/openai-remove-non-profit-control-give-sam-altman-equity-sources-say-2024-09-25/">Reuters.</a>Two other technical executives– Bob McGrew, chief research officer, and Barret Zoph, vice president of research– also announced their departures last week. Altman and Wojciech Zaremba are the only co-founders remaining from the 11-person founding team.Zaremba wrote in a viral X post, "Their departures made me think about the hardships parents faced in the Middle Ages when 6 out of 8 children would die prematurely," he wrote. "Despite the profound loss, the parents had to accept it and find deep joy and satisfaction in the 2 who survived."

VCs are rushing to meet with former OpenAI CTO Mira Murati in hopes of funding a new company

<ul class="summary-list"><li>Most of OpenAI's cofounders have left the startup, with some going to rivals. </li><li>Since it was founded in 2015, it's had controversies including the brief ousting of CEO Sam Altman.</li></ul>OpenAI has attracted billions of dollars from investors, but it has also lost many key figures — including some of its cofounders. The startup was cofounded as a nonprofit research lab by a group of 11 people in 2015.Since then, it has grown rapidly and amassed a wealth of users since it launched ChatGPT in 2022. In September, the <a target="_blank" class="" href="https://www.businessinsider.com/openai-investors-latest-funding-round-2024-10">$157 billion company</a> said it has more than 1 million paying business users globally, a sharp increase from 600,000 in April.Alongside its rapid growth, the company has been hit by a series of controversies over the years, like the brief ousting of its CEO, Sam Altman, in November 2023. More recently, a wave of high-profile exits has put it in the spotlight, with executives like former CTO <a target="_blank" class="" href="https://www.businessinsider.com/mira-murati-openai-cto-leaving-executive-memo-staff-2024-9">Mira Murati leaving last month</a>. Barret Zoph, the vice president of research, and Bob McGrew, chief research officer, left on the same day as Murati. OpenAI has also lost two cofounders this year: Ilya Sutskever, who <a target="_blank" class="" href="https://www.businessinsider.com/ilya-sutskever-leaving-openai-6-months-after-failed-altman-ouster-2024-5">announced his departure</a> in May, and John Schulman, who <a target="_blank" class="" href="https://www.businessinsider.com/openai-rivals-anthropic-perplexity-on-prowl-after-wave-exec-departures-2024-10">defected to its rival Anthropic</a> in August. As of October 2024, the company had just three remaining cofounders, although one is on sabbatical until the end of the year. Here's where all of the 11 cofounders are now.<h2 id="ee03f9b8-bbe3-49ab-9bb5-e331f7f2308f">Sam Altman</h2><div type="image" title="Sam Altman presenting onstage with the OpenAI logo behind him." height="2801" width="4200" msid="113906849" hostid="261" sizebytes="327554"></div>Altman, who is the face of the world's most high-profile startup, remains at OpenAI as its CEO. He was briefly ousted in November 2023, but after a dramatic few days, he returned and then created an entirely new board. <h2 id="689e24e3-623f-46d0-9279-8a4bdde28202">John Schulman</h2>Schulman took over the position of overseeing OpenAI's Superalignment team in May after Jan Leike left <a target="_blank" class="" href="https://www.businessinsider.com/jan-leike-ilya-sutskever-resignations-superalignment-openai-superintelligence-safe-humanity-2024-5">to join rival Anthropic</a>. The team was tasked with mitigating AI risks. But in August, Schulman announced in an X post that he made the "difficult decision" to leave OpenAI. Explaining the reasons behind his decisions, he wrote, "This choice stems from my desire to deepen my focus on AI alignment, and to start a new chapter of my career where I can return to hands-on technical work."<h2 id="f8cedb91-55a6-415b-82ab-193012de0cfb">Wojciech Zaremba</h2>Zaremba is one of the last few remaining cofounders at OpenAI, where he leads its robotics efforts.In March, Zaremba said it was "sad" to witness <a target="_blank" href="https://www.businessinsider.com/elon-musk">Ekon Musk</a> and <a target="_blank" href="https://www.businessinsider.com/sam-altman-chatgpt-openai-ceo-career-net-worth-ycombinator-prepper-2023-1">Altman</a> engage in an "unnecessary fight" after <a target="_blank" class="" href="https://www.businessinsider.com/elon-musk-sues-sam-altman-betrays-openai-mission-chatgpt-2024-3">Musk filed a lawsuit</a> against OpenAI and some of its cofounders.Zaremba wrote, "It would be so much better to put your creative energy into building the future you dream of over a quarrel. May you (both) be happy and find peace."<h2 id="d9068127-718f-439e-b289-0e8e8d17c1ac">Ilya Sutskever</h2><div type="image" title="Ilya Sutskever" height="4000" width="6000" msid="113906840" hostid="261" sizebytes="1902732"></div>Sutskever departed his role as chief scientist at OpenAI in May. The move came six months after <a target="_blank" href="https://www.theatlantic.com/technology/archive/2023/11/openai-ilya-sutskever-sam-altman-fired/676072/">reports</a> suggested he played a key role in the brief ousting of Altman. Soon after, Sustkever said he <a target="_blank" href="https://www.businessinsider.com/openai-cofounder-ilya-sutskever-deeply-regrets-participating-ousting-sam-altman-2023-11">"deeply" regretted participating</a> in the board's action against Altman.In June, Sustskever announced in an X post that he was starting a new company called Safe Superintelligence Inc. The company aims to develop superintelligence safely, a form of AI capable of surpassing human intelligence. It has since raised $1 billion.<h2 id="2cab76fe-deec-4f22-9d6a-80a05f7f17e4">Greg Brockman</h2>Brockman, president of OpenAI, said in a <a target="_blank" rel=" nofollow" class="" href="https://x.com/gdb/status/1820644694264791459">statement on X </a>in August that he's taking a sabbatical through year-end."First time to relax since co-founding OpenAI 9 years ago. The mission is far from complete; we still have a safe AGI to build," he wrote.<h2 id="0a56bf17-afaf-461c-a145-76b5c05aec08">Durk Kingma</h2>After over two years as a research scientist and team lead at OpenAI, Kingma joined Google DeepMind in 2018. In October, he announced in an X post that he was joining Anthropic.He said its approach to developing AI "resonates significantly" with his own beliefs. According to his LinkedIn profile, Kingma will work on machine learning research. <h2 id="f6856cf8-7f98-4fb6-90b0-af65f27a6138">Andrej Karpathy</h2><div type="image" title="Andrej Karpathy wearing a black sweater" height="2991" width="3701" msid="113906852" hostid="261" sizebytes="233348"></div>Research scientist Karpathy has had two stints working at OpenAI. The first time he left was in 2017, to join Tesla. He then boomeranged back to OpenAI in 2023, before leaving a year later to launch AI education startup Eureka Labs.<h2 id="028633d2-1c8d-4695-ac8e-c459c927b581">‎Vicki Cheung</h2>Cheung left OpenAI in 2017 to join the ride-hailing firm Lyft after she spent two years as the startup's head of infrastructure and a founding engineer. She is now the chief technology officer of the machine learning firm Gantry, which she cofounded with another former OpenAI researcher.<h2 id="6e502831-6b5b-45d1-97dd-fb53336a2920">Elon Musk</h2><div type="image" title="Elon Musk" height="4336" width="5780" msid="113906842" hostid="261" sizebytes="1174710"></div>The billionaire runs Tesla, SpaceX, The Boring Company, and he founded the AI startup xAI in 2023. Musk sued OpenAI in February, accusing the ChatGPT maker of abandoning its founding mission. In a blog post OpenAI published after Musk sued the company, the ChatGPT maker said he left in February 2018. However, Musk's lawyers argued in the first lawsuit that he "continued to make contributions to OpenAI" until mid-September 2020. Musk dropped the lawsuit in June and then <a target="_blank" class="" href="https://www.businessinsider.com/elon-musk-sues-openai-sam-altman-again-why-2024-8">filed a fresh lawsuit</a> in August, with his lawyers arguing he was "assiduously manipulated" by Altman and Brockman into cofounding OpenAI. <h2 id="031840ed-1fc0-4f6e-9f5c-92fa5e0ca491">Pamela Vagata</h2>Vagata is one of the lesser-known cofounders of OpenAI. Nor does she include the company on her LinkedIn profile. However, she was listed as a founding member on an early version of the company's website. According to her LinkedIn profile, she used to work at Facebook as an AI research engineer before joining Stripe as a software engineer in 2016. She left in 2019 as an AI tech lead. In 2021, she became a founding partner at venture capital firm Pebblebed.<h2 id="458442af-c30e-4306-8317-192aa0b8648d">Trevor Blackwell</h2>Blackwell left the company in 2017. According to his LinkedIn profile, he is a roboticist and was a partner at Y Combinator until 2020. His personal website states that he's "working on better ways to program robots."OpenAI and none of its 11 cofounders immediately responded to Business Insider's requests for comment, made outside normal working hours.<h2 id="ebb690fe-408f-43b0-83f5-9dd13a51b1f5"></h2>

Here's where OpenAI's 11 cofounders are now 

<ul class="summary-list"><li><keyword id="20948500" type="General" weightage="100" keywordseo="Mira-Murati" source="keywords">Mira Murati</keyword> is leaving <keyword id="19918823" type="General" weightage="20" keywordseo="OpenAI" source="keywords" meta.keywordsubtype="org" meta.entityname="OpenAI" meta.hostid="261" meta.entityid="OpenAI">OpenAI</keyword>, causing shockwaves in the <keyword id="20790511" type="General" weightage="20" keywordseo="tech-sector" source="keywords">tech sector</keyword>.</li><li>Murati's departure follows a series of high-profile exits from OpenAI this year.</li></ul><a target="_blank" class="" href="https://www.businessinsider.com/mira-murati-openai-cto-leaving-executive-memo-staff-2024-9">Mira Murati announced on Wednesday</a> that she is leaving OpenAI, where she served as chief technology officer and interim CEO after <keyword id="19918827" type="General" weightage="20" keywordseo="Sam-Altman" source="keywords">Sam Altman</keyword> was briefly ousted in November. Her departure immediately set off shockwaves across the tech sector. <a target="_blank" class="" href="https://www.bloomberg.com/news/articles/2024-09-25/openai-cto-mira-murati-says-she-will-leave-the-company">Bloomberg reported</a> that employees used a "WTF" emoji in Slack in response to the news. There's also rampant speculation on X about why she is leaving — and where she'll end up next. And then, of course, there are the memes on social media, poking fun at the high-profile departures that have happened this year. One VC joked that OpenAI lacked a C-suite. Others pointed to a <a target="_blank" class="" href="https://x.com/_thatstartupguy/status/1839037417912783194?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1839037417912783194%7Ctwgr%5Ef6eb4801b303d0ceadb67d0b3b6778b877e6d9a6%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fmuse.insider.com%2Fstory%2F66f48f0b69657a7deb4de735">2023 </a><a target="_blank" href="https://x.com/_thatstartupguy/status/1839037417912783194?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1839037417912783194%7Ctwgr%5Ef6eb4801b303d0ceadb67d0b3b6778b877e6d9a6%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fmuse.insider.com%2Fstory%2F66f48f0b69657a7deb4de735">Wired magazine cover</a> featuring CEO Altman, Murati, former chief scientist and cofounder Ilya Sutskever, and Greg Brockman, the company's president and cofounder. Wired, at the time, called the OpenAI execs the world's "AI overlords." Of the four, only Altman and Brockman are left at the company, and Brockman is on extended leave through the end of the year. Sutskever announced his departure from OpenAI in May and launched his own AI startup focused on safety. The snark on X, meanwhile, has reached critical mass. A few hours after Murati announced her departure, <a target="_blank" class="" href="https://www.businessinsider.com/sam-altman-openai-note-more-staff-exits-barret-bob-2024-9">two other OpenAi departures </a>were announced on X: Bob McGrew, the company's chief research officer, and Barret Zoph, the vice president of research. Left on the leadership team are CFO Sarah Friar; Chief Scientist Officer Jakub Pachocki, who replaced Sutskever: Chief Operating Officer Brad Lightcap; and Chief Product Officer Kevin Weil. Of the <a target="_blank" class="" href="https://www.ft.com/content/638f67f7-5375-47fc-b3a7-af7c9e05b9e0">11 cofounders</a> of OpenAI from 2015, <a target="_blank" class="" href="https://www.businessinsider.com/crew-of-10-helped-sam-altman-found-openai-dwindled-2-2024-8">only Altman, Brockman (who, again, is on leave), and Wojciech Zaremba remain</a>. One of the cofounders, Elon Musk, has filed a lawsuit against OpenAI. Musk dropped, then reopened the suit in August, saying he believed he was helping start a nonprofit and had been "deceived." OpenAI responded to the lawsuit, <a target="_blank" class="" href="https://www.businessinsider.com/elon-musk-fightingwars-alot-of-fronts-2024-8">telling Business Insider</a> in an August statement: "As we said about Elon's initial legal filing, which was subsequently withdrawn, Elon's prior emails continue to speak for themselves." OpenAI did not immediately respond to a request for comment from BI on McGrew and Zoph's departures. The brain drain has also included other high-profile exits, including former researcher and head of alignment <a target="_blank" class="" href="https://www.businessinsider.com/jan-leike-ilya-sutskever-resignations-superalignment-openai-superintelligence-safe-humanity-2024-5">Jan Leike</a>, who announced his resignation in May, shortly after Sutskever. <a href="https://www.businessinsider.com/openai-safety-researchers-quit-superalignment-sam-altman-chatgpt-2024-5" target="_blank">Daniel Kokotajlo and William Saunders</a>, who worked on OpenAI's governance and safety teams, left in the first half of the year. Additionally, OpenAI cofounder John Schulman left in August to join OpenAI rival Anthropic — where Leike also landed. And another cofounder, Andrej Karpathy, left in February 2024. In August, Kokotajlo said that about <a target="_blank" class="" href="https://www.businessinsider.com/openai-lost-nearly-half-agi-safety-team-ex-researcher-2024-8">half of the people focused on AI safety had left the company</a>. "It's not been like a coordinated thing," he told Fortune. "I think it's just people sort of individually giving up." OpenAI, which was founded in 2015, has been the dominant player in the AI race since the launch of ChatGPT in late November 2022. It has since launched more sophisticated versions of ChatGPT, its text-to-image model DALL-E, and GPT 4o. The startup also announced a voice assistant, a text-to-video model named Sora, and its <a target="_blank" class="" href="https://www.businessinsider.com/openai-o1-product-name-strawberry-2024-9">most sophisticated AI model, o1</a>, which the startup said can reason. But rivals — including some OpenAI investors like Microsoft — are catching up. On Wednesday, Meta announced that Meta AI is on track to be "the most used AI assistant in the world." OpenAI's <a target="_blank" class="" href="https://www.businessinsider.com/sam-altman-openai-mission-drift-for-profit-nonprofit-structure-investment-2024-9">latest funding round </a>— which would bring its valuation to $150 billion — is now nearly complete and could include investors like Apple and Nvidia, per <a target="_blank" class="" href="https://www.bloomberg.com/news/articles/2024-09-19/openai-to-decide-which-backers-to-let-into-6-5-billion-funding?embedded-checkout=true">Bloomberg</a>. And Altman, <a target="_blank" class="" href="https://www.businessinsider.com/open-ai-sam-altman-equity-stake-valuation-private-nonprofit-9">according to Reuters</a> and Bloomberg, <a target="_blank" class="" href="https://www.businessinsider.com/open-ai-sam-altman-equity-stake-valuation-private-nonprofit-9">could be in for a large payday</a> with a reported company restructuring that would shift the startup away from its current nonprofit status. Correction: September 26, 2024 — An earlier version of this story misstated when Daniel Kokotajlo and William Saunders left OpenAI. They left in the first half of this year, not last year.

The OpenAI talent exodus has become the joke of the moment in tech world

<ul class="summary-list"><li>OpenAI just lost another key leader, CTO Mira Murati.</li><li>The departure comes as OpenAI seeks to raise billions of dollars of capital.</li></ul>OpenAI's bumpy year just got a little rougher.On Wednesday, OpenAI lost its Chief Technology Officer, <a target="_blank" href="https://www.businessinsider.com/mira-murati-openai-cto-leaving-executive-memo-staff-2024-9">Mira Murati.</a> Following <a target="_blank" href="https://www.businessinsider.com/sam-altman-openai-note-more-staff-exits-barret-bob-2024-9">CEO Sam Altman</a>'s brief ousting last year, Murati had been the company's unofficial spokesperson and face.The announcement that Murati is on her way out was followed by two more high-level departures: Barret Zoph, the VP of research, and Bob McGrew, chief research officer, both announced their exits on X.All this comes at a critical time for OpenAI. It's in the middle of a mega fundraising round that could take it over the line of a $150 billion valuation. The company has also been trying to attract juggernaut investors like Microsoft and Nvidia to raise <a target="_blank" class="" href="https://www.businessinsider.com/openai-fundraising-150-billion-valuation-new-funding-round-altman-thrive-2024-9">$6.5 billion</a> in capital.Here are four of the key challenges OpenAI is now up against.A spokesperson for OpenAI did not immediately respond to a request for comment from BI.<h2 id="83d5b714-41a1-4405-a03b-61ecd730e364">OpenAI bleeds C-suite executives</h2>As OpenAI chases a massive fundraising round, the startup continues to deal with a staff exodus.Murati's departure adds to the growing list of key employees leaving the company. Of the <a target="_blank" rel=" nofollow" class="" href="https://www.ft.com/content/638f67f7-5375-47fc-b3a7-af7c9e05b9e0">11 cofounders</a> of OpenAI from 2015, <a target="_blank" rel="" class="" href="https://www.businessinsider.com/crew-of-10-helped-sam-altman-found-openai-dwindled-2-2024-8">only Altman, Greg Brockman, and Wojciech Zaremba remain</a>.OpenAI president Brockman is on an extended leave until the end of the year. <a target="_blank" class="" href="https://www.businessinsider.com/man-who-revolted-against-sam-altman-just-started-research-lab-2024-6">Ilya Sutskever</a>, the company's cofounder and chief scientist, <a target="_blank" class="" href="https://www.businessinsider.com/ilya-sutskever-leaving-openai-6-months-after-failed-altman-ouster-2024-5">announced his departure from the company in May</a>. In August, tech outlet The Information reported that OpenAI's cofounder John Schulman and Peter Deng, the vice president of consumer product, left the startup.In October, Wired magazine ran a cover that featured Altman, Murati, Brockman, and Sutskever posing together and dubbing them the "AI overlords." A year later, only one of those four remains active at the company."A CEO needs a team to run a complex organization," James Park, a corporate law professor at the University of California, Los Angeles, told Business Insider. "Without a C-suite, I'd be concerned that the CEO will not be able to make informed decisions about the myriad of issues that arise in running a corporation."Employees at OpenAI were also caught off guard by Murati's announcement, prompting "wtf" responses in the company's Slack, Bloomberg reported.Gene Munster, a tech analyst and managing partner at Deepwater Asset Management, told BI that Murati's departure comes at an unsual time."The timing is strange given that OpenAI is in the process of raising much dough," he said. "Usually that doesn't happen. She's been Altman's right-hand person."The glaring void in OpenAI's C-suite has become the <a target="_blank" class="" href="https://www.businessinsider.com/openai-talent-exodus-joke-tech-world-mira-murati-sam-altman-2024-9">social media joke of the moment among VCs.</a>Altman said on Wednesday that, as far as he's concerned, "leadership changes are a natural part of companies, especially companies that grow so quickly and are so demanding.""I obviously won't pretend it's natural for this one to be so abrupt, but we are not a normal company, and I think the reasons Mira explained to me (there is never a good time, anything not abrupt would have leaked, and she wanted to do this while OpenAI was in an upswing) make sense," Altman <a target="_blank" class="" href="https://twitter.com/sama/status/1839096160168063488">wrote</a> on X.<h2 id="83436fe9-c75a-4529-9904-642bc9c41852">OpenAI's conversion to a for-profit company — and a big Musk lawsuit</h2>Soon after Murati's announcement, <a target="_blank" class="" href="https://www.reuters.com/technology/artificial-intelligence/openai-remove-non-profit-control-give-sam-altman-equity-sources-say-2024-09-25/">Reuters</a> reported that OpenAI's <a target="_blank" class="" href="https://www.businessinsider.com/open-ai-sam-altman-equity-stake-valuation-private-nonprofit-9">nonprofit board will no longer control the company's for-profit sector</a>, citing anonymous sources familiar with the matter.The nonprofit side of OpenAI will still exist and have a minority stake in the for-profit company, the sources told Reuters."The change to a for-profit governance structure is not surprising," Park, the corporate law expert, told BI. "Given the ambitions of OpenAI, a non-profit structure has been too constraining. To raise investor funds, OpenAI will have to generate profits."The debate over whether OpenAI should be a for-profit company has been a bone of contention for one very vocal tech industry bigwig — Elon Musk.Musk, one of the cofounders of OpenAI, <a target="_blank" class="" href="https://www.businessinsider.com/elon-musk-sues-openai-sam-altman-again-why-2024-8">revived his lawsuit against the company in August</a>. Musk is now accusing OpenAI of deceiving him into co-founding the firm. Musk's lawyers have also alleged that Altman was part of a "long con" to convince Musk that OpenAI would be a nonprofit that would build a safe AI to benefit humanity.OpenAI, in response to Musk's renewed legal battle against it, told <a target="_blank" rel="" class="" href="https://www.businessinsider.com/elon-musk-fightingwars-alot-of-fronts-2024-8">Business Insider</a> in an August statement: "As we said about Elon's initial legal filing, which was subsequently withdrawn, Elon's prior emails continue to speak for themselves."<h2 id="2b31d4d2-2946-4d4d-a2ab-06a047a4b4dc">Critics are getting louder</h2>OpenAI's switch-up to its corporate governance leaves room for the startup to adhere to its touted mission of benefiting humanity.But the new structure also raises new risks and some OpenAI critics say it gives further credence to the argument that <a target="_blank" class="" href="https://www.businessinsider.com/sam-altman-openai-glory-days-ending-problems-chatgpt-2024-5">Altman</a> is not truly invested in building a safe AI.Gary Marcus, the founder of machine-learning company Geometric Intelligence and the former head of Uber's AI lab, wrote in an August column for <a target="_blank" class="" href="https://www.theguardian.com/technology/article/2024/aug/03/open-ai-sam-altman-chatgpt-gary-marcus-taming-silicon-valley">The Guardian</a> that Altman has repeatedly misled the public about his financial stake in OpenAI and that the CEO's company has been quietly lobbying for weaker global regulations."We simply can't trust giant, privately held AI startups to govern themselves in ethical and transparent ways," Marcus wrote. "And if we can't trust them to govern themselves, we certainly shouldn't let them govern the world."Under the new structure, OpenAI's for-profit arm would no longer be beholden to the nonprofit board, and Altman, for the first time, would receive equity, sources told Reuters."They are jettisoning any layer of oversight that might make them responsible to humanity," Marcus told BI in an email. "How could that not be worrying?"Park, the corporate law expert, told BI that the for-profit governance structure could also leave OpenAI vulnerable to greater government scrutiny."The danger is that there will be a stronger argument for government scrutiny of the company's efforts because of the concern it will take unacceptable risks in pursuing profitability," he said.<h2 id="6ed2325d-aea5-4e1a-beb2-8f70e366415d">A growing field of competition</h2>As the company hopes to attract and retain top talent, OpenAI also faces several formidable competitors, including Meta and Musk's xAI, which just got a new supercomputer factory.Meta launched its latest iteration of its language model, <a target="_blank" class="" href="https://www.businessinsider.com/mark-zuckerberg-open-source-ai-platforms-future-competition-apple-llama-2024-9">Llama</a>, in July. CEO Mark Zuckerberg has been praised for its <a target="_blank" class="" href="https://www.businessinsider.com/mark-zuckerberg-meta-llama-ai-model-praise-open-source-musk-2024-7">open-source model</a>.Musk's xAI is also starting to play catch-up with rivals after the company debuted its supercomputer, <a target="_blank" class="" href="https://www.businessinsider.com/elon-musk-xai-chips-mark-zuckerberg-2024-9">Colossus</a>. Musk says Colossus is powered by 100,000 Nvidia chips.Munster, the tech analyst, told BI that Murati's resignation represents a huge loss for OpenAI — but it doesn't alter the company's trajectory or its leads in the race to artificial general intelligence."OpenAI is in the lead now and I don't think this changes it," he said.Murati's exit, the analyst added, wouldn't have the same impact as it would if Altman were to leave the company. When Altman was suddenly ousted by the board last November, dozens of employees responded on X with a <a target="_blank" class="" href="https://www.businessinsider.com/sam-altman-kicked-off-a-flood-of-emoji-posts-from-openai-executives-what-do-they-mean-2023-11">heart emoji</a>, signaling solidarity with their CEO."Sam Altman is bigger than the company," Munster said. "That would be a big deal. There would be a mass resignation. But beyond that, you're not gonna have mass resignation just cause (Murati's) leaving. The company's on a great track. They're going to retain the talent. And they're probably going to win the AI race."

OpenAI has 4 big challenges it needs to conquer in its quest for AI dominance       

<ul class="summary-list"><li>OpenAI cofounder Wojciech Zaremba called Elon Musk and Sam Altman's ongoing feud "unnecessary." </li><li>Zaremba's X post follows Musk's filing of a lawsuit against OpenAI and Sam Altman.</li></ul>OpenAI cofounder Wojciech Zaremba said it's been "sad" to witness <a target="_blank" href="https://www.businessinsider.com/elon-musk">Elon Musk</a> and <a target="_blank" href="https://www.businessinsider.com/sam-altman-chatgpt-openai-ceo-career-net-worth-ycombinator-prepper-2023-1">Sam Altman</a> engage in an "unnecessary fight."The computer scientist made the remark in an <a target="_blank" href="https://x.com/woj_zaremba/status/1764068393198751932?s=20">X post</a> on Saturday after <a target="_blank" href="https://www.businessinsider.com/elon-musk-sues-sam-altman-betrays-openai-mission-chatgpt-2024-3">Musk sued OpenAI</a> and its CEO.Zaremba wrote, "I deeply respect <a target="_blank" href="https://twitter.com/elonmusk">@elonmusk</a>, and I love <a target="_blank" href="https://twitter.com/sama">@sama</a>. It's sad to see an unnecessary fight. It would be so much better to put your creative energy into building the future you dream of over a quarrel. May you (both) be happy and find peace."Zaremba joined four other OpenAI founders in <a target="_blank" href="https://www.businessinsider.com/sam-altman-brings-receipts-elon-musk-involvement-openai-lawsuit-2024-3">posting private emails between them and Musk</a> on its blog on Tuesday. The <a target="_blank" href="https://openai.com/blog/openai-elon-musk">blog</a> suggested that Musk supported its plans to pivot to a for-profit company structure. "We're sad that it's come to this with someone whom we've deeply admired—someone who inspired us to aim higher, then told us we would fail, started a competitor, and then sued us when we started making meaningful progress towards OpenAI's mission without him," the authors wrote.Musk's lawyers argued in the lawsuit against OpenAI, filed Thursday, that it had become a "closed-source de facto subsidiary" of Microsoft and that it had jeopardized its mission to build AI for the benefit of humanity.The cofounders fired back in their blog post, saying: "In late 2017, we and Elon decided the next step for the mission was to create a for-profit entity. Elon wanted majority equity, initial board control, and to be CEO. In the middle of these discussions, he withheld funding."They also said Musk forwarded them an email that proposed they should "attach to Tesla as its cash cow," and that he wanted to be CEO of OpenAI and have majority control. "Elon wanted majority equity, initial board control, and to be CEO. In the middle of these discussions, he withheld funding," they said.OpenAI said Musk left the company in late February 2018, but his lawyers claim he "continued to make contributions to OpenAI" until mid-September 2020.OpenAI didn't immediately respond to Business Insider's request for comment, made outside of normal working hours.

OpenAI cofounder says he's sad to witness the 'unnecessary' feud between Elon Musk and Sam Altman

<ul class="summary-list"><li>When OpenAI was founded in 2015, it had an 11-member founding team.</li><li>However, eight of OpenAI's cofounders have since left the company.</li></ul><a target="_blank" class="" href="https://www.businessinsider.com/history-of-openai-company-chatgpt-elon-musk-founded-2022-12">OpenAI</a> is barely a decade old, but nearly three-quarters of its founding team has left its top ranks since its inception. On Monday, the company's cofounder and head of its alignment science efforts, <a target="_blank" class="" href="https://www.businessinsider.com/openai-leadership-changes-brockman-deng-schulman-anthropic-departures-2024-8">John Schulman,</a> said he'd "<a target="_blank" class="" href="https://x.com/johnschulman2/status/1820610863499509855">made the difficult decision</a>" to leave OpenAI for its rival Anthropic."This choice stems from my desire to deepen my focus on AI alignment, and to start a new chapter of my career where I can return to hands-on technical work," Schulman wrote in an X post."To be clear, I'm not leaving due to lack of support for alignment research at OpenAI," he added. "My decision is a personal one, based on how I want to focus my efforts in the next phase of my career."OpenAI CEO Altman penned a <a target="_blank" class="" href="https://x.com/sama/status/1820617107354083611">thank-you post</a> to Schulman on X shortly after, praising Schulman as a "brilliant researcher" and "deep thinker about products and society.""We're grateful for John's contributions as a founding team member at OpenAI and his dedicated efforts in advancing alignment research," OpenAI said in a statement to <a target="_blank" class="" href="https://techcrunch.com/2024/08/05/openai-co-founder-leaves-for-anthropic/">TechCrunch</a>.This makes Schulman the eighth cofounder who has left OpenAI since its founding in 2015.Only three of the <a target="_blank" class="" href="https://openai.com/index/introducing-openai/">original 11 founding members</a> remain — Altman, language and code generation lead Wojciech Zaremba, and president Greg Brockman. Brockman, notably, said on Monday that he will be "<a target="_blank" class="" href="https://x.com/gdb/status/1820644694264791459">taking a sabbatical through the end of year."</a>Besides Schulman, OpenAI has seen multiple exits among its leadership ranks in recent months. In May, OpenAI co-founder and chief scientist <a target="_blank" href="https://www.businessinsider.com/ilya-sutskever-leaving-openai-6-months-after-failed-altman-ouster-2024-5">Ilya Sutskever</a> announced his resignation from the company.Sutskever leaving OpenAI wasn't a huge surprise, given that he'd <a target="_blank" class="" href="https://www.businessinsider.com/openai-cofounder-ilya-sutskever-deeply-regrets-participating-ousting-sam-altman-2023-11">worked with fellow board members to oust Altman</a> as CEO in November. He <a target="_blank" class="" href="https://www.businessinsider.com/man-who-revolted-against-sam-altman-just-started-research-lab-2024-6">started his own AI company, Safe Superintelligence Inc.,</a> a month after resigning from OpenAI. Sutskever's departure coincided with other top-level exits, including his co-lead for OpenAI's superalignment team, <a target="_blank" class="" href="https://www.businessinsider.com/jan-leike-ilya-sutskever-resignations-superalignment-openai-superintelligence-safe-humanity-2024-5">Jan Leike</a>. Like Schulman, Leike is <a target="_blank" class="" href="https://x.com/janleike/status/1795497960509448617">now working at Anthropic</a>."I joined because I thought OpenAI would be the best place in the world to do this research," Leike <a target="_blank" class="" href="https://x.com/janleike/status/1791498174659715494">wrote on X</a> in May. "But over the past years, safety culture and processes have taken a backseat to shiny products."Disagreements over OpenAI's approach toward innovation appear to be a key bugbear for some of its departed cofounders, and nowhere has that been clearer than with former board member Elon Musk.Musk left the company's board in 2018, citing a conflict of interest related to his work at Tesla. But Musk has since gone on the offensive, publicly criticizing and taking legal action against the company.The mercurial billionaire first <a target="_blank" class="" href="https://www.businessinsider.com/elon-musk-sues-sam-altman-betrays-openai-mission-chatgpt-2024-3">sued</a> OpenAI in February, <a target="_blank" href="https://s3.documentcloud.org/documents/24452289/elon-musk-openai-lawsuit.pdf">accusing</a><a target="_blank" class="" href="https://s3.documentcloud.org/documents/24452289/elon-musk-openai-lawsuit.pdf"> Altman and the company of violating its nonprofit mission</a> by partnering with Microsoft. Musk initially dropped the lawsuit in June, only to <a target="_blank" class="" href="https://www.businessinsider.com/elon-musk-sues-openai-sam-altman-again-why-2024-8">sue the company again</a> on Monday."OpenAI was created as an open source (which is why I named it 'Open' AI), non-profit company to serve as a counterweight to Google, but now it has become a closed source, maximum-profit company effectively controlled by Microsoft," Musk <a target="_blank" class="" href="https://x.com/elonmusk/status/1626516035863212034?s=20">wrote on X</a> in February 2023. "Not what I intended at all."To be sure, not everyone has left OpenAI on such acrimonious terms.In fact, quite a number of them left the company way before it struck gold with <a target="_blank" class="" href="https://www.businessinsider.com/everything-you-need-to-know-about-chat-gpt-2023-1">ChatGPT</a> in 2022.Roboticist <a target="_blank" class="" href="https://www.trevorblackwell.com/#">Trevor Blackwell</a>, software engineer <a target="_blank" class="" href="https://www.linkedin.com/in/vickicheung/">Vicki Cheung</a>, research scientist <a target="_blank" class="" href="http://dpkingma.com/">Durk Kingma</a>, and research engineer <a target="_blank" class="" href="https://foresight.org/fellowship/mentor-pamela-vagata/">Pamela Vagata</a> left the company between 2016 and 2018.Notably, cofounder <a target="_blank" class="" href="https://karpathy.ai/">Andrej Karpathy</a> had two stints with OpenAI, the first from 2015 to 2017, and the second from 2023 to 2024. Karpathy spent the interim period from 2017 to 2022 at Musk's Tesla, where he served as the EV giant's senior director of AI."First of all nothing 'happened' and it's not a result of any particular event, issue or drama (but please keep the conspiracy theories coming as they are highly entertaining :))," Karpathy <a target="_blank" class="" href="https://x.com/karpathy/status/1757600075281547344?lang=en">wrote on X</a> in February after leaving OpenAI.OpenAI didn't immediately respond to a request for comment from Business Insider sent outside regular business hours.

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