The OpenAI shakeup shakes up Silicon Valley, leaving some tech experts worried about the future of AI

A wide swath of Silicon Valley has spent the past few years pinning their hopes and fortunes on the kind of generative artificial intelligence technologies that OpenAI has helped popularize.

Many industry experts point to the introduction of ChatGPIT late last year as an iPhone-like moment that potentially changed the way people interact with computers through written signals that are creative, seemingly human. -Can generate text as is.

Just as Apple Just as the late Steve Jobs served as the company’s iconic head, bringing the appeal of the iPhone and personal computers to the masses, OpenAI had its charismatic leader in Sam Altman.

Altman has been ousted as CEO – at least for now – following his sudden dismissal on Friday, drawing comparisons to Apple independently. Jobs was ousted as CEO of Apple in 1985, a move that is legendary in Silicon Valley history, as it was only after his return in 1997 that Apple found the path that ultimately made it America’s most valuable company.

Altman, who previously ran the startup accelerator Y Combinator, has spent the past year socializing with world leaders and appearing regularly at tech events, turning the 38-year-old executive into an industry celebrity, in the mold of Jobs. meta CEO Mark Zuckerberg, Amazon Founder Jeff Bezos and Tesla CEO Elon Musk.

Along with Altman, OpenAI’s board removed Greg Brockman from his role as chairman. Later Friday, Brockman said he was leaving the company.

“What happened today at OpenAI is a board coup that we haven’t seen since 1985 when the then-Apple board ousted Steve Jobs,” longtime startup investor Ron Conway said in an email Friday evening. Post, “It’s shocking; it’s irresponsible; and it’s not done right by Sam and Greg or all of OpenAI’s builders.”

Efforts by OpenAI investors to bring back Altman are already underway, according to people familiar with the matter. Microsoft, Tiger Global, Sequoia Capital and Thrive Capital are among several top backers of OpenAI who are trying to reinstate Altman, said the people, who spoke on condition of anonymity because the discussions are confidential. The Verge reported Saturday that Altman is “ambivalent” about the possibility of a return.

airbnb CEO Brian Chesky mentioned Altman in an Post as “one of the best founders of his generation” who has “made huge contributions to our industry.”

Matt Schlich, CEO of startup Octane AI, told that Altman and Brockman, who previously served as Stripe’s chief technology office, “made available a technology we had only ever dreamed of” and called it “the most exciting and . The powerful evolution of our lifetime.”

Octane is one of several new startups using so-called large language models, which OpenAI packages under its GPT family of software tools. Schlicht said the technology so far “has enabled us to put human-level intelligence inside our code, and because of that we’ve helped entrepreneurs generate over half a billion in revenue.”

“I have known both Sam and Greg for over a decade, they are incredible and inspiring leaders,” Schlicht said. “I was immediately filled with sadness after hearing about his untimely departure. Innovation in the world came to a sudden halt.”

Ryan Janssen, CEO of Zenlytics, shared Schlicht’s sentiment.

“The AI community is in crisis,” Janssen said. He said technologists are confused about the circumstances surrounding Altman’s dismissal and what it means for OpenAI moving forward.

Janssen said, “Sam and OpenAI were the catalyst that showed the world what AI technology is capable of.” “The enormous amount of excitement and activity in AI today is directly thanks to his pioneering work.”

Whether Altman returns or not, the turmoil at OpenAI could give rivals an advantage in what has become a highly competitive market for advanced LL.M. From heavily funded startups like Anthropic and Cohere to cloud computing giants Google And AmazonIndustry analyst Patrick Moorehead said companies will likely “look for the next best option” given the perceived instability in OpenAI.

“They’re not the only game in town,” Moorhead said.

Josh Wolfe, partner at venture firm Lux Capital, said OpenAI is gaining a bigger reputation at a time when companies are deciding which models they are going to use as building blocks.

“There was a perception of steady, predictable, reliable reputational progress and engagement and communication with the industry,” Wolff said. “The surprising eccentricity of this move signals complete unpredictability, which is terrifying for companies planning to work with or rely on OpenAI.”

A large part of the challenge in understanding OpenAI is its Unusual company structure. According to the blog post announcing Altman’s ouster, OpenAI’s board oversees the non-profit of which the corporate entity is a part, and “acts as the overall governing body for all OpenAI activities”.

The Post said that a “deliberative review process by the board” concluded that Altman “was not consistently clear in his communications with the board, thereby hindering its ability to comply with its responsibilities.”

The firing of high-profile Silicon Valley startup CEOs typically involves wrongdoing, not merely philosophical differences about the direction the company is headed.

Several investors told that OpenAI’s hybrid model presented a red flag from the beginning, as incentives could very easily be misaligned. Now, he said, if top talent chooses to follow Altman for their next project or to a competitor in the industry, the company risks serious brain drain.

Meanwhile, Altman has the advantage of having made such a name for himself that he will have no problem raising money for a new project from investors who see him as the next great tech giant.

“Sam Altman is my hero,” former Google CEO and investor Eric Schmidt said in an ex. Post, “He built a company worth $90 billion from nothing and changed our collective world forever. I can’t wait to see what he does next. I and billions of others will benefit from his future work – It’s going to be just incredible.”

Airbnb’s Chesky wrote that he has spoken to Altman and Brockman and has their “full support.”

“I am saddened by what happened,” Chesky wrote. “He and the rest of the OpenAI team deserve better.” He said in a separate post that Altman is “one of the best founders of his generation.”

As for Microsoft, whose CEO Satya Nadella was reportedly surprised by the reshuffle, many venture capitalists wondered how the company could be so unaware of this given the billions they have invested in the company. What’s going on.

“I think the next time Microsoft decides to put $15 billion into a startup it might ask for a board seat,” said Zachary Lipton, a professor of machine learning and operations research at Carnegie Mellon University.

Industry analyst Moorhead said Microsoft could “figure out how to buy this company and put Sam in charge.”

Moorehead said, “That’s the first play, it’s potentially removing the current board of directors, reinstalling a new board of directors, and then finding ways to bring Sam and company back together – while making sure the band remains united. ”

Despite the current chaos, Carnegie Mellon’s Lipton said he expects investors to remain bullish on AI.

Lipton said, “There are elements of corporate and ideological discord in this story, but not the slightest trace of diminished promise.”

Watch: OpenAI says Sam Altman is stepping down as CEO because ‘the board no longer has confidence.’