OpenAI's investors may take legal action against the board for Sam Altman's firing: Report

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OpenAI, the parent company of generative artificial intelligence application ChatGPT, are considering legal action against the company's board, following the removal of CEO Sam Altman, as per a Reuters report quoting sources. OpenAI's investors are concerned about a mass exodus of employees following Altman's ouster, they told the news agency. Notably, more than 500 of the company's 700 employees had written to the board threatening to leave if Altman was not reinstated.

Also Read | Sam Altman Confident of OpenAI's Future with Microsoft's Partnership: ‘One team, one mission’ The sources told Reuters that investors are consulting with legal advisors to explore their available options. However, it remains uncertain whether any legal action against OpenAI will be pursued. Most of the investors are worried that their significant investments in OpenAI may go bust if the start-up crumbles post Altman's unceremonious exit.

As a leader in its field, OpenAI is the "crown jewel" in many of these investor's portfolios and the looming uncertainty is making them uncomfortable, the report noted. OpenAI did not respond to queries, as per the report. Also Read: OpenAI's Ilya Sutskever ‘deeply regrets’ his role in the ouster of Sam Altman In terms of ownership, Microsoft holds a 49 percent take in OpenAI's for-profit arm, followed by employees and stakeholders who own another collective 49 percent, and the remaining 2 percent is with OpenAI's non-profit parent, as per the Reuters report quoting data from Semafor.