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Sam Altman returns to OpenAI as CEO after a week of high corporate drama

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First OpenAI fired him, then Microsoft took him along with several other key engineers, and now OpenAI has again revived Sam Altman to its fold.

The high-profile AI startup on Wednesday announced that Altman is returning to the company he had founded. Sam Altman’s sudden dismissal had created quite a buzz in tech circles, leading to days of discussions and debates.

Currently, the most valuable US startup said that it has reached an “agreement in principle” for Altman’s return.

“We have reached an agreement in principle for Sam to return to OpenAI as CEO with a new initial board of Bret Taylor (Chair), Larry Summers, and Adam D’Angelo,” the company said in a post on X.

The company is still working “to figure out the details” of the agreement.

The board that decided to throw Altman out is also under intense scrutiny and the company is said to be reforming the board.

The startup has said that former Salesforce chief executive Bret Taylor, former US Secretary of the Treasury Larry Summers, and Quora founder Adam D’Angelo will be part of the new board at the AI startup.

“I love OpenAI, and everything I’ve done over the past few days has been in service of keeping this team and its mission together. when I decided to join Microsoft on Sunday evening, it was clear that was the best path for me and the team. With the new board and with Satya’s support, I’m looking forward to returning to OpenAI, and building on our strong partnership with Microsoft,” Altman said in a statement posted on X.

After OpenAI fired Altman, Microsoft, which owns about 49% of OpenAI, ran with open arms and hired him to lead a new AI group.

Several other OpenAI employees, including former OpenAI president Greg Brockman resigned and joined Microsoft.

Microsoft chief Satya Nadella welcomed OpenAI’s decision and said that he was encouraged by the changes to the OpenAI board.

“We believe this is a first essential step on a path to more stable, well-informed, and effective governance. Sam, Greg, and I have talked and agreed they have a key role to play along with the OAI leadership team in ensuring OAI continues to thrive and build on its mission. We look forward to building on our strong partnership and delivering the value of this next generation of AI to our customers and partners,” Nadella wrote on X.

According to a report by Reuters, the earlier board members of OpenAI, including its chief scientist Ilya Sutskever, independent directors D’Angelo, technology entrepreneur Tasha McCauley, and Georgetown Center for Security and Emerging Technology’s Helen Toner never offered a comprehensive explanation behind Altman’s decision.

This led several OpenAI investors to explore options to sue the board members.

After Wednesday’s announcement, Emmett Shear, the interim leader of OpenAI, said he was pleased with the decision.

“Coming into OpenAI, I wasn’t sure what the right path would be. This was the pathway that maximized safety alongside doing right by all stakeholders involved. I’m glad to have been a part of the solution,” he posted on X.