What happen to OpenAI?
In a brief span of time, OpenAI has evolved from an under-the-radar nonprofit to a prominent AI leader. However, this rapid transformation is causing internal friction. With Mira Murati, the company’s CTO, stepping down as OpenAI prepares to shift to a for-profit structure, key nine executives have also resigned. The growing divide stems from a conflict between OpenAI’s original goal of developing AI for public benefit and its recent focus on commercial ventures. Discontent has been fueled by rushed product releases, safety concerns, and internal power struggles.
CEO Sam Altman, who returned to lead after a brief removal, faces criticism for being disconnected from day-to-day operations. His focus has been on fundraising and expanding AI infrastructure globally, which some argue detracts from the company’s core research. Meanwhile, OpenAI’s focus has shifted towards becoming a typical business, growing its staff and leadership, and securing financial backing from companies like Microsoft, Apple, and Nvidia. This transition aims to keep the company financially sustainable given the massive costs of developing AI models.
While some employees see the financial drive as necessary, others argue that it has compromised the company’s mission. The balancing act between a product-driven focus and research culture has created significant internal friction. Despite the turbulence, OpenAI has seen financial success, with annual revenues projected at $4 billion — three times higher than last year. However, setbacks in the development of its next major AI model, GPT-5, and competition from former employees’ startups, such as Elon Musk’s xAI and Anthropic, have added to the pressure. Many at OpenAI are grappling with the challenges of maintaining their technological leadership amidst these internal and external pressures.
