Summary of OpenAI saga

Greetings!

Welcome to The Menu Magic - Finance & AI weekly newsletter

In today’s email:

• The Creator of ChatGPT was fired and then he came back with more power.

• The complicated legal structure of OpenAI

The CEO of OPENAI was fired and then he came back with more power.

Dear friend,

You wouldn't believe the drama that unfolded in Silicon Valley recently. It's like the Kardashians episode for tech nerds. Let's dive into the full story so you're in the loop.

The Cast and Setting

- Sam Altman: Former CEO of OpenAI, ex-President of Y Combinator (YC)

- Greg Brockman: Co-founder of Stripe, one of the world's most valuable startups, and President of OpenAI's board.

- Ilya Sutskever: A key figure in convolutional neural networks and OpenAI's Chief Scientist.

The Core Dilemma

OpenAI, initially a non-profit, faced a critical question: Should they speed up creating a superintelligence to solve human problems or cautiously control it to ensure safety? This debate shaped their journey.

The Boardroom Shakeup

The initial board had big names like Elon Musk, Reid Hoffman, and Peter Thiel. Eventually, it was just Sam, Greg, and Ilya from OpenAI, with some independent members like Adam D'Angelo of Quora. The focus? Protect humanity in the event of a superintelligence breakthrough.

The Unexpected Turn

Things got heated when Sam announced new commercialization plans for ChatGPT, hinting at a major discovery. Ilya disagreed with the direction Sam was taking. In a shocking move, the independent board members fired Sam over a Google Meet call. Greg also left, choosing not to stay without board representation.

Microsoft's Role

As OpenAI's major investor, Microsoft was kept in the dark until after these events. They negotiated for Sam and Greg's return, demanding a board reshuffle and governance restructuring.

Enter Emmett Shear

Suddenly, Emmett Shear, former Twitch CEO, was announced as OpenAI's new CEO. His vision was to slow down AI development, contrasting the current pace.

The Employee Backlash

OpenAI's team, including Ilya, regretted their decision. About 700 of the 800 employees threatened to resign if Sam and Greg didn't return.

The Resolution

After a tumultuous weekend, Microsoft announced Sam and Greg would lead a new independent AI lab. Meanwhile, Emmett initiated an investigation into the board's decision to remove Sam.

The Current Status

Sam has returned to OpenAI as CEO, with a revamped board. This saga reminds us of San Francisco's unique position in the tech world, especially in AI.

Closing Thoughts

Isn't it fascinating how power struggles, ethics, and the future of AI entwine in this Silicon Valley drama? What do you think this means for the future of AI and its governance?

Catch up soon, and let me know what you think!

The confusing legal structure of OpenAI

I'd love to hear your feedback on today's newsletter! Is there a specific type of content you'd like to see more of in the future? Since I'll be releasing a new edition each week, I welcome any suggestions or requests you may have. Looking forward to hearing your thoughts!

The Menu Magic is written by Francisco Cordoba Otalora, an AI entrepreneur living in London.

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