Sam Altman Cleared and Reinstated to OpenAI Board Amid Probe
- ByStartupStory | March 9, 2024
OpenAI CEO Sam Altman has been reinstated to the company’s board after being cleared of any wrongdoing following an investigation. “I’m pleased this whole thing is over,” Altman said at a news conference Friday. The inquiry by law firm WilmerHale concluded that Altman’s removal was due to a breakdown in trust between him and the prior board, rather than concerns about product safety or finances.
Altman’s return to the board is accompanied by the addition of Sue Desmond-Hellmann, Nicole Seligman, and Fidji Simo. Altman’s ousting in November led to significant changes within OpenAI’s leadership structure, with Microsoft gaining a nonvoting observer seat.
The investigation into Altman’s removal was led by WilmerHale, a renowned law firm known for conducting high-profile corporate investigations. The review involved dozens of interviews and the examination of thousands of documents. “Larry, Adam and I are unanimous in our support of Sam continuing as CEO,” said Bret Taylor, former co-CEO of Salesforce and a board member at OpenAI.
Lessons from the investigation prompted OpenAI’s board to implement new governance changes, including strengthening conflict of interest policies and establishing a whistleblower hotline for staff. Additionally, new board committees, like the mission and strategy committee, have been created to advance the company’s mission.
Despite Altman’s reinstatement, challenges persist for OpenAI. The Securities and Exchange Commission is investigating potential investor misleading during last year’s upheaval, while a lawsuit filed by co-founder Elon Musk raises questions about the startup’s relationship with Microsoft and the composition of its new board.
However, since Altman’s return, OpenAI has continued to innovate, launching new products like ChatGPT and teasing a video generation product named Sora. Altman has also been actively involved in raising funding for an ambitious chip venture, according to sources familiar with the matter.
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