After backlash following the sudden termination of CEO Sam Altman, the OpenAI board is in a bind. Their minimal communications and what seems like an impulsive decision caused problems inside and outside the company. The latest news is that Altman may return because of investor pressure—and because he and a few employees who resigned in protest started, within hours, setting up a competitive company.

The Board’s initial statement cites “safety concerns tied to rapid expansion of commercial offerings.” Although his termination seems shocking, we don’t know the level of friction between Altman and the board. This article describes the possible ideological differences between Altman and the board, which are more subtle than what some describe as differences between “doomers” and “accelerationists,” with more focus on how to rather than whether to expand generative AI

The company statement doesn’t say much, yet is “unusually candid,” as a Wall Street Journal writer put it:

Mr. Altman’s departure follows a deliberative review process by the board, which concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities. The board no longer has confidence in his ability to continue leading OpenAI.

“Candid” seems to be the word of the day. The WSJ writer means frank or forthcoming, while the board writer means truthful—both relate to integrity.

OpenAI President Greg Brockman was excluded from the meeting and resigned shortly after, writing on X that he was shocked too. Messages from Brockman and Altman to staff were short and professional. Other researchers resigned soon after. Altman has been posting his gratitude and potential plans regularly on X.

Microsoft tried to contain the damage. Without prior notice, CEO Satya Nadella posted a short statement expressing his continued confidence in the company. He referenced “Mira,” Interim CEO Mira Murati, and said nothing else about leadership changes. Still, Microsoft shares fell 1.7% by Friday’s close.

The OpenAI COO also tried to control damage in an email to staff that confirmed the decision was about a “breakdown in communications” (no kidding!) and not about “malfeasance.”

Students might be interested to learn more about the unusual governance structure of OpenAI. As a nonprofit board (in this case, only six members), they have more control over OpenAI’s leadership and operations than do investors of the subsidiary. Still, investors—and employees and the public—can and certainly are voicing their opinions. Whether or not Altman returns, the messaging will be interesting to watch.