Why OpenAI once fired CEO Sam Altman: The truth behind his shocking return

It has been nearly two years since one of the most dramatic incidents that sent shockwaves through Silicon Valley and the whole tech world i.e. the abrupt firing and sudden reinstatement of Sam Altman as CEO of OpenAI.

This OpenAI board saga remains a defining moment in tech history, a tale about governance, power, and the personalities driving the future of artificial intelligence (AI).

Here’s the story behind the boardroom drama that nearly tore OpenAI apart, including testimony from former board members and Altman himself.

What really happened?

On November 17, 2023, OpenAI’s board of directors abruptly announced that Altman was being removed as CEO after a “deliberative review process.”

The official reason was that he had not been “consistently candid” in his communications with the board.

Altman himself reportedly learned of his ouster just minutes before it was made public, during a brief Google Meet call while attending the Las Vegas Grand Prix.

Within half an hour, OpenAI co-founder Greg Brockman was also informed, prompting his resignation along with several key researchers in solidarity with Altman.

The sudden dismissal created chaos inside the company. Mira Murati, then CTO, was named interim CEO, but within days, OpenAI would cycle through multiple interim leaders as internal pressure mounted.

Five days later, on November 22, Altman was reinstated as CEO after overwhelming pressure from employees, investors, and OpenAI’s most important partner, Microsoft.

The incident left scars on the organisation but also cemented Altman’s influence.

Why was Altman removed

The decision to remove Altman stemmed from deep fractures between him and the board. 

Former board member Helen Toner later explained that Altman’s behaviour eroded trust.

According to Toner, Altman failed to disclose that he controlled the OpenAI Startup Fund, a conflict of interest.

She noted that Altman misrepresented details about OpenAI’s safety processes to the board “on multiple occasions.”

Moreover, he retaliated against critics, including Toner herself, allegedly lying to fellow board members in an attempt to push her out.

Similarly, two executives came forward directly to the board, accusing Altman of creating a toxic workplace atmosphere marked by “psychological abuse” and manipulative tactics.

The board also claimed it had no oversight of key launches. The release of ChatGPT in November 2022, which is one of the fastest-growing apps in history, was reportedly not disclosed to the board in advance.

In Altman’s words

Earlier this year in an interview, Altman described the aftermath of his firing as leaving him with “a complete mess on my hands.”

He told Bloomberg that after being reinstated, he faced new investigations, negative press leaks, and internal chaos.

“And all those people that I feel like really messed me and messed the company were gone, and now I had to clean up their mess,” Altman said, without naming names.

“Artificial”: OpenAI board drama comes to Hollywood

An upcoming $40 million feature film being made by Amazon MGM Studios for Prime Video titled "Artificial" will chronicle OpenAI’s high-stakes boardroom drama.

Acclaimed director Luca Guadagnino is in talks to helm the project. The screenplay is penned by “Saturday Night Live” alum Simon Rich, hinting at a satirical tone that captures the absurdity of real-life events.

The casting is also underway, with Andrew Garfield being considered to play Sam Altman. Monica Barbaro will likely portray former CTO Mira Murati.

Moreover, Yura Borisov is lined up to play Ilya Sutskever, the OpenAI co-founder involved in Altman’s initial ouster.