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Culture War Roundup for the week of November 13, 2023

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OpenAI announces leadership transition

The board of directors of OpenAI, Inc., the 501(c)(3) that acts as the overall governing body for all OpenAI activities, today announced that Sam Altman will depart as CEO and leave the board of directors. Mira Murati, the company’s chief technology officer, will serve as interim CEO, effective immediately.

A member of OpenAI’s leadership team for five years, Mira has played a critical role in OpenAI’s evolution into a global AI leader. She brings a unique skill set, understanding of the company’s values, operations, and business, and already leads the company’s research, product, and safety functions. Given her long tenure and close engagement with all aspects of the company, including her experience in AI governance and policy, the board believes she is uniquely qualified for the role and anticipates a seamless transition while it conducts a formal search for a permanent CEO.

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.

In a statement, the board of directors said: “OpenAI was deliberately structured to advance our mission: to ensure that artificial general intelligence benefits all humanity. The board remains fully committed to serving this mission. We are grateful for Sam’s many contributions to the founding and growth of OpenAI. At the same time, we believe new leadership is necessary as we move forward. As the leader of the company’s research, product, and safety functions, Mira is exceptionally qualified to step into the role of interim CEO. We have the utmost confidence in her ability to lead OpenAI during this transition period.”

I posted this in Twitter and someone speculated that it's because Altman paused subscriptions on Tuesday, but that would alone seem like a pretty inconsequential reason for this sort of a major move.

OpenAI's structure is a little convoluted, https://openai.com/our-structure

It's a 501c3 that owns a for-profit company. They are trying to walk a tightrope to avoid falling into thorny legal issues.

It would be very easy for Altman to do something that created legal issues he didn't expect. Moving resources between the orgs could be a problem. Doing something as simple as telling a few of the non-profit employees to help out the engineers at the for profit company is a legal minefield.

There's also another issue. 501c3s are supposed to be run in the ideal Moldbug fashion. The CEO is a local monarch and the board measures his performance and can fire him if they aren't satisfied.

However the board sometimes let power go to their heads and decide they should be running things. They fire the CEO because he's getting the glory and not doing what they say.

I am always wary of non-profits. It seems like a corporate structure that invites corruption. A for-profit company has an objective goal and shareholders it is accountable to. A non-profit with a self-perpetuating board does not.

The board members have a lot of power and are accountable only to each other. The incentive is for them to subvert the stated goals of the organization for their own benefit.

Benefiting monetarily may be difficult, but converting their power into less tangible benefits is not, especially when the goal of the non-profit is vaguely defined.

None of the board members' positions is secure. They can be voted out at any time by the other board members. Anyone brought in to support a faction can betray the other members of the faction. New factions can emerge. This all discourages long term goals. The incentive is to get in, use internal politics to gain power, and then exploit that power for personal or ideological benefit while it lasts.

I am always wary of non-profits.

I agree with this, but also remember the original mission. OpenAI got it's initial dose of mind-share, talent and OPM because it was supposed to save the world from centralising AI in the hands of a winner-take-all company.

IMHO that was a dumb strategy for achieving a valid goal from the beginning, but a straight-out for-profit company would have been completely opposite to the mission.