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OpenAI Investors Consider Suing the Board after firing Sam Altman amid 700 Staff Resigning

OpenAI Investors Consider Suing the Board after firing Sam Altman amid 700 Staff Resigning

The news of Sam Altman’s dismissal as the CEO of OpenAI, the research organization dedicated to creating artificial general intelligence (AGI), has shocked the AI community and sparked a legal dispute among its investors. According to sources familiar with the matter, some of the investors who backed OpenAI with $1 billion in 2019 are unhappy with the board’s decision to fire Altman and are considering taking legal action against them.

The reasons behind Altman’s firing are not clear, but some speculate that it has to do with his controversial vision for OpenAI and its future products. Altman, who was previously the president of Y Combinator, joined OpenAI as its CEO in March 2019, with the goal of leading the organization towards creating AGI that can benefit humanity. He also oversaw the launch of OpenAI’s commercial arm, OpenAI LP, which aimed to generate revenue from its AI technologies while maintaining its ethical and social mission.

However, some of the investors who funded OpenAI LP were reportedly dissatisfied with Altman’s leadership and direction, especially after the release of GPT-3, the powerful natural language processing system that can generate coherent and diverse texts on almost any topic.

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GPT-3 has been hailed as a breakthrough in AI research, but it has also raised concerns about its potential misuse and impact on society. Some investors feared that Altman was planning to use GPT-3 and other AI systems to create a new platform that would compete with existing tech giants and disrupt various industries.

700 employees OpenAI tell the board to resign.

700 employees of OpenAI, the leading artificial intelligence research organization, have signed a letter demanding that the board of directors resign immediately. The letter, which was leaked to the media, accuses the board of mismanagement, lack of transparency, and ethical violations.

The letter states that the board has failed to uphold the vision and mission of OpenAI, which is to ensure that artificial intelligence is aligned with human values and can benefit all of humanity. The letter also claims that the board has interfered with the research agenda, suppressed dissenting voices, and favored certain projects over others without clear criteria or justification.

The letter cites several examples of the board’s alleged misconduct, such as:

The controversial decision to create and license GPT-3, a powerful natural language processing system, to Microsoft, without consulting the researchers or the broader AI community.

The lack of oversight and accountability for the OpenAI Codex project, which aims to create a general-purpose programming system that can generate code from natural language.

The dismissal of several prominent researchers who raised ethical concerns or criticized the direction of OpenAI.

The secrecy and exclusivity surrounding the OpenAI Scholars program, which provides funding and mentorship to underrepresented groups in AI.

The neglect and marginalization of other important research areas, such as fairness, safety, and social impact of AI.

The letter concludes by calling for a complete overhaul of the governance structure of OpenAI, including:

The resignation of the current board members: Sam Altman (CEO), Ilya Sutskever (Research Director), Greg Brockman (CTO), Elon Musk (Founder), Reid Hoffman (Founder), Peter Thiel (Founder), Jessica Livingston (Founder), and Srinivasan Balaji (Investor).

The establishment of a new board that reflects the diversity and expertise of the OpenAI community and the broader AI stakeholders. The creation of a transparent and democratic process for electing and evaluating board members and setting the strategic direction of OpenAI.

The adoption of a code of ethics and conduct that guides the research and development of OpenAI and ensures its alignment with human values and social good.

The letter ends by expressing hope that OpenAI can regain its reputation and credibility as a leader in artificial intelligence research and innovation and reaffirming the commitment of the signatories to work towards this goal.

According to one source, who spoke on condition of anonymity, some investors felt that Altman was “too ambitious and reckless” and that he was “putting OpenAI’s reputation and mission at risk”. They also claimed that Altman was not transparent enough with the board and the investors about his plans and strategies, and that he did not consult them before making important decisions. The source said that some investors tried to persuade Altman to change his course and align with their interests, but he refused to do so.

The tension between Altman and some of the investors reached a boiling point last week, when the board of OpenAI decided to fire him as the CEO. The board consists of seven members, including co-founders Elon Musk and Peter Thiel, as well as Reid Hoffman, Jessica Livingston, Greg Brockman, Ilya Sutskever, and Srinivasan Balaji. The board did not disclose the reasons for Altman’s dismissal but issued a statement thanking him for his contributions and announcing that Brockman, the CTO of OpenAI, will take over as the interim CEO.

The firing of Altman has triggered a backlash from some of the investors who supported him and his vision for OpenAI. They believe that the board acted unfairly and violated their contractual rights as shareholders of OpenAI LP. They also argue that Altman was the best person to lead OpenAI towards achieving its goal of creating AGI that can benefit humanity. They are now considering suing the board for breach of fiduciary duty, wrongful termination, and other claims.

The legal dispute could have serious implications for OpenAI and its future projects. It could also affect the relationship between OpenAI and its partners, customers, and collaborators, who rely on its AI technologies and services. Moreover, it could damage the reputation and credibility of OpenAI as a leading AI research organization that aims to ensure that AGI is aligned with human values and can be used for good.

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