The sudden departure of Chief Technology Officer Mira Murati left many staff members unsettled, especially as it coincided with swirling rumours about OpenAI’s possible shift towards becoming a for-profit entity
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OpenAI’s executives have been working to calm the concerns of their employees following the recent departure of several key leaders. In a bid to reassure the team, the company’s chief financial officer conveyed that interest from investors in OpenAI’s latest massive funding round has been remarkably strong, according to sources familiar with the situation.
The sudden departure of Chief Technology Officer Mira Murati left many staff members unsettled, especially as it coincided with swirling rumours about OpenAI’s possible shift towards becoming a for-profit entity.
Murati’s resignation, which was communicated to CEO Sam Altman on Wednesday morning and later announced in the afternoon, was just the beginning. The same day saw the exits of two other prominent figures: Chief Research Officer Bob McGrew and Vice President of Research Barret Zoph.
In response to these unexpected changes, OpenAI’s leadership, including CEO Sam Altman, CFO Sarah Friar, and the departing Murati, addressed the staff in a half-hour meeting on Thursday. Altman, who participated remotely from Italy, alongside other executives, spoke about their continued enthusiasm for the company’s direction and future.
They expressed gratitude towards Murati and acknowledged the leadership transition by highlighting promotions within the company. Mark Chen was elevated to Senior Vice President of Research, while Jakub Pachocki, who had been named Chief Scientist earlier in May, was also recognised.
Although specific details of the ongoing fundraising effort were not disclosed, it was emphasised that the round has been oversubscribed, reflecting strong demand from investors eager to participate. This was seen as a positive sign of confidence in OpenAI’s future, despite the internal turbulence.
Looking beyond the immediate changes, OpenAI’s board is reportedly weighing the possibility of moving further away from the company’s original nonprofit roots. This potential shift could involve significant changes in the corporate structure, including the possibility of granting substantial equity to CEO Altman.
There is also a clause in the current funding arrangement that would allow investors to request their money back if OpenAI does not revamp its structure within two years, adding another layer of pressure on the company’s leadership to chart a clear path forward.
In the midst of these developments, the focus remains on maintaining the company’s momentum and reassuring employees as OpenAI navigates through this period of transition.