This way out: Why so many startup founders are being shown the door
NEW DELHI : OpenAI chief executive and founding team member Sam Altman was last week fired from the company he helped make famous. Many startup founders have been made to leave their companies. What’s behind this trend? Mint explains.
An official statement from the OpenAI board alleged that Altman was “not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities." Industry reports claimed differences in opinions between OpenAI’s board members, many of whom are also founding members, and Altman, were the key reason. The firm said the board didn’t have “confidence in (Altman)’s ability to continue leading OpenAI." However, key investors have since backed Altman. On Monday afternoon, Microsoft chairman Satya Nadella said Altman will “lead a new advanced AI research team" in MS.
Any post-funding startup venture typically has a board of directors, but is led from the front by a chief executive who becomes the face of the venture. For instance, ChatGPT maker OpenAI had 12 founding members, but only Elon Musk and subsequently Sam Altman, who served as chief executive until 17 November, were prominently known in public. The exit of such founding executives, especially those who are public figures, is generally a statement of intent in the industry that the company intends to take a different course of action—be it in policy, operating strategy, or any other way.
Steve Jobs was ousted by Apple’s board in 1985—before returning in 1997. Today, it is the most valuable company in the world. Meta founder Mark Zuckerberg has come under regulatory scrutiny.
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