OpenAI’s board of directors removed Altman as CEO in November 2023 due to a lack of confidence in his leadership abilities. However, Altman returned as the startup’s chief executive a few days later, with a new board in place. This period became known among OpenAI employees as “The Blip.” Details of the drama unfolded over the following weeks and months, revealing various perspectives on Altman’s ouster.
In December, Altman acknowledged the challenge he faced during this time but noted that it ultimately strengthened the company, leading to a more united front. Meanwhile, Elon Musk’s xAI garnered attention for its fundraising efforts, positioning itself as a competitor to OpenAI.
Reports emerged in January that xAI was seeking significant investment, aiming for a valuation of $20 billion. In February, OpenAI’s valuation soared to $80 billion, tripling its previous value. This development allowed company employees to cash out their shares through a tender offer.
The situation took a legal turn in February when Musk sued Altman and OpenAI, alleging that the company had strayed from its nonprofit mission by becoming a Microsoft subsidiary generating profits. Altman and other OpenAI executives refuted Musk’s claims, stating that Musk had previously discussed the potential for-profit transformation of OpenAI.
A Securities and Exchange Commission (SEC) investigation into OpenAI surfaced in February, probing potential investor misrepresentation. The inquiry was reportedly triggered by concerns raised by the former OpenAI board regarding Altman’s communication practices before his temporary removal from the company.
Altman’s return to OpenAI’s board in March was met with support from the board, which deemed him and President Greg Brockman as the right leaders for the organization. Additionally, three new female members joined the board at that time. OpenAI co-founder Ilya Sutskever announced his departure from the company in May, expressing confidence in OpenAI’s mission to develop safe and beneficial artificial general intelligence.
In another move, OpenAI swiftly discontinued the use of ChatGPT’s “Sky” voice in May following complaints that it resembled Scarlett Johansson’s voice.
There was a controversy surrounding the “Sky” voice, with some users noting similarities to the voice of an automated assistant in the movie “Her,” which was voiced by Scarlett Johansson. Johansson disclosed that she had been approached to voice ChatGPT by Altman but declined. When OpenAI proceeded with a voice similar to hers, Johansson expressed shock and sought legal representation. OpenAI received criticism for potential safety concerns as they launched their AI video generator, Sora. In addition, a New York Times report raised further image issues for OpenAI, highlighting worries from current and former employees about the company’s approach to preventing AI from posing risks to humanity. OpenAI emphasized its commitment to safety, including an “anonymous integrity hotline” and a safety and security committee. The company faced public relations challenges, including restrictive NDAs for departing employees and equity risks. Apple announced plans to integrate ChatGPT into its software in June, expanding the AI’s reach to millions of iPhone users. Elon Musk filed a lawsuit against OpenAI in August, later amending it to include Microsoft and others. In September, OpenAI revealed plans to transition to a for-profit company, facing opposition from figures like Musk and Mark Zuckerberg. CTO Mira Murati announced her departure from OpenAI in September, citing a desire for personal exploration. President Gregg Brockman took an extended leave of absence but returned in November, amid other changes within the company’s leadership.
Several key figures have departed from OpenAI in the year 2024, as reported by Business Insider. Alongside others, including Sutskever, at least nine notable employees have bid farewell to the company. Among the departures were co-founders Andrej Karpathy and John Schulman. Karpathy initially left OpenAI in 2017 to take up a position at Tesla, only to return to OpenAI in 2023.
In a significant development, OpenAI recently secured a monumental $6.6 billion funding round in October, marking a historic milestone in Silicon Valley. This valuation placed OpenAI at an impressive $157 billion, positioning it alongside industry giants such as Uber and AT&T. Thrive Capital spearheaded the funding round, with major investments coming from prominent entities including SoftBank, Tiger Global, Microsoft, and Nvidia.
In a separate investment report, it was disclosed that xAI had successfully raised $5 billion, with a valuation reaching $50 billion. This financial achievement further underscores the growing prominence and financial backing of OpenAI in the tech industry.
However, amidst these financial triumphs, OpenAI faced legal challenges in November. The company reportedly deleted crucial legal data pertinent to its ongoing legal dispute with The New York Times and other media outlets. Attorneys representing the newspapers were in the process of reviewing OpenAI’s training data as part of the legal proceedings. To their dismay, it was revealed that “OpenAI’s engineers erased all of the News Plaintiffs’ programs and search result data,” as outlined in court filings. OpenAI remained silent in response to requests for comment at that time.
The departure of key personnel, coupled with the substantial funding rounds and legal controversies, paints a complex picture of OpenAI’s trajectory in 2024. These events underscore the intricate challenges and opportunities faced by the prominent artificial intelligence organization as it navigates the ever-evolving landscape of technology and ethics.
