In November 2023, Microsoft CTO Kevin Scott detailed events leading to OpenAI CEO Sam Altman’s unexpected firing in an email to CEO Satya Nadella and other executives. The email revealed that Altman’s dismissal stemmed from escalating tensions between Altman and OpenAI co-founder Ilya Sutskever.
Two primary conflict points emerged: the allocation of GPUs as demand for ChatGPT surged, causing friction between research and application teams; and Sutskever’s personal issues with Altman’s promotion of Jakub Pachocki, a former subordinate who achieved significant breakthroughs. While Altman’s decisions aimed to optimize resources, they alienated core research teams. The internal dynamics were complicated by board structure and a lack of experience in managing CEO transitions. Following Altman’s firing, numerous team members expressed loyalty and some resigned in protest.
This incident illustrates the challenges of balancing innovation and resource management in tech leadership amid rapid growth.
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