Microsoft becomes a board member of OpenAI as Sam Altman resumes CEO role
November 30 2023
Sam Altman has resumed his role as CEO of OpenAI after a turbulent period when he was abruptly dismissed by the board, which has now undergone significant changes. Microsoft, a major OpenAI investor, has been granted a non-voting observer seat on the board, marking the company’s first direct oversight of OpenAI’s governance despite holding a significant stake in its for-profit entity. Altman expressed his excitement about OpenAI’s future and gratitude for the team’s resilience, noting that not a single customer was lost during this period. The restructured board now includes Bret Taylor as chair, with Larry Summers, and Adam D’Angelo—who is the sole remaining member from the previous board. Altman also acknowledged the situation with OpenAI’s co-founder and former board member, Ilya Sutskever, hoping to maintain a working relationship despite Sutskever’s departure from the board. OpenAI, energized by enduring a crucial test of unity and purpose, is moving forward with renewed priorities and governance structures to continue their mission.
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What does it mean?
- CEO: The highest-ranking executive in a company or organization, responsible for making major corporate decisions, managing overall operations, and acting as the main point of communication between the board of directors and corporate operations.
- turbulent period: A time of instability, disorder, or turmoil, often used to describe a phase of significant challenges or changes within a company or market.
- board: A group of individuals elected to represent shareholders and to establish corporate management related policies and to make decisions on major company issues.
- non-voting observer seat: A position on a company's board that allows the holder to sit in on meetings and be informed about the board's decisions and discussions, but without the power to vote on board matters.
- stake: An ownership interest in a company, typically represented by holding company stock, which can come with certain rights depending on the percentage owned.
- for-profit entity: A type of organization established with the goal to make money, as opposed to a non-profit entity which aims to serve a public or social benefit.
- customer: An individual or business that purchases goods or services produced by a company.
- chair: The leading or presiding officer of an organized group such as a board, committee, or deliberative assembly. In the context of a board, the chair is typically responsible for setting the agenda, presiding over meetings, and representing the board to the public.
- mission: A defined goal or purpose of an organization, outlining what they strive to achieve or the primary tasks the organization seeks to accomplish.