The governance saga at OpenAI (A): OpenAI: Governance crises threaten an artificial intelligence pioneer

Set against a dramatic November 2023 weekend, this case examines in detail the shocking decision to remove OpenAI CEO and founder Sam Altman and the resulting crisis, which sparked an investor and employee revolt against the board of directors responsible for his dismissal.

The narrative then shifts to OpenAI’s history, highlighting its pioneering role in generative AI and its unique governance model. This structure is designed to balance attracting investor funding—necessary to cover the immense costs of developing advanced models like GPT-4—with the company’s mission to create “artificial general intelligence (AGI) that is safe and beneficial for all of humanity.” OpenAI’s model seeks to reconcile the motive of profit with safeguards against the potential risks of powerful AI. The crisis leading to Altman’s ousting underscores the inherent tension between these two goals, which is now brought to a head.