Exodus of OpenAI leaders continues amid shift to for-profit model

Significant leadership changes are underway at leading artificial intelligence company OpenAI as several key executives announce their departures. CTO Mira Murati, Chief Research Officer Bob McGrew and Vice President of Research Barret Zoph have all revealed their intentions to leave the company. These departures come as OpenAI, currently overseen by a nonprofit board, is reportedly going through a transition to a traditional for-profit structure.

Ms. Murati, a leading figure at OpenAI for more than six years, stated her desire for personal exploration as the reason for her departure. Mr. McGrew and Mr. Zoph cited similar desires for new opportunities and a break from work. CEO Sam Altman expressed gratitude for Murati’s contributions and promised more details on the leadership transition soon. He also clarified that the resignations of Mr McGrew and Mr Zoph, although announced at the same time, were unrelated to Ms Murati’s decision.

This wave of departures follows a tumultuous period for OpenAI, including Altman’s brief removal and subsequent reinstatement as CEO earlier this year. The company is reportedly seeking a new round of investment that could value it at a staggering $150 billion, a significant increase from its previous valuation of $80 billion. This fundraising effort is driven by OpenAI’s significant operating costs, estimated at $7 billion per year, which exceeds its current $3 billion in revenue. Potential investors reportedly include MGX, Microsoft, Nvidia, Apple and Tiger Global.

OpenAI’s shift toward a for-profit model and its aggressive fundraising efforts reflect a broader push to solidify its position in the rapidly evolving AI landscape. The company recently expanded its executive team with professionals experienced in product, finance and global politics, more than doubling its workforce to more than 1,700 employees. However, these new additions coincide with the departure of several long-term managers and researchers, including many of the company’s original founders. Only three of the original thirteen founders remain, and one of them, President Greg Brockman, is currently on leave.

The departure of McGrew and Zoph represents a significant loss for OpenAI’s research team. While Zoph was a central figure in practical research, McGrew played a crucial role in strategic planning and project oversight. Despite these departures, OpenAI has also recruited top research talent, including Noam Brown, formerly of Meta, whose expertise in reasoning techniques is crucial to the development of OpenAI’s latest technology, OpenAI o1. This technology aims to improve the reasoning capabilities of AI systems like ChatGPT, potentially reducing errors and instances of fabricated information.

By Samuel B. Price

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