The encyclopedia · People & Management · People decision · 2023
OpenAI's board fired Sam Altman — and the entire company revolted in 5 days
In November 2023, OpenAI's board fired CEO Sam Altman. 95% of employees threatened to leave. Microsoft offered to hire them all. Altman was rehired in 5 days.
OpenAI · 2023-11
What happened
On November 17, 2023, OpenAI's board of directors fired CEO Sam Altman, citing a loss of confidence in his leadership. The firing was abrupt and poorly communicated, and the board's reasons were initially vague.
The response was unprecedented: within hours, OpenAI's chief scientist Ilya Sutskever (who had initially supported the firing) reversed his position. Within days, over 700 of OpenAI's ~770 employees signed a letter threatening to resign and join Microsoft, which offered to hire them all. Microsoft, OpenAI's largest investor, publicly supported Altman.
After five days of chaos, the board capitulated: Altman was rehired as CEO, and the board was reconstituted. The case illustrated how a board that fires a CEO without the organization's support can lose control of the company entirely, and how in a talent-driven company, the employees are the asset — and they can vote with their feet.
Why it happened
- The board fired Altman abruptly, with vague reasons and no succession plan.
- 95% of employees threatened to resign and join Microsoft.
- Microsoft, OpenAI's largest investor, publicly supported Altman.
- The board capitulated after 5 days; Altman was rehired and the board was reconstituted.
The lesson
A board that fires a CEO without the organization's support controls an empty building. OpenAI's employees were the asset, and they threatened to leave. The team is the company.
Aftermath
Altman was rehired as CEO. The board was reconstituted with new members. The case prompted a broader discussion about governance in AI companies and the balance between board oversight and founder/CEO authority.
Sources
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