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OpenAI Investors Contemplating Board Lawsuit: Report 

2 mins
Updated by Ciaran Lyons
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In Brief

  • According to a recent report, OpenAI investors are mulling over potential legal action against the board.
  • The board recently made the decision to fire the company CEO Sam Altman, which lead to other staff threatening to leave.
  • The investors are reportedly worried the backlash could be a costly, and potentially put their investment at risk.
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OpenAI investors are reportedly considering legal action against the company board for its decision to terminate CEO Sam Altman, with the potential for significant repercussions.

According to sources familiar with the matter, they are only exploring legal recourse at the moment and nothing has been set in stone.

OpenAI Investors Worry About Potential High Costs

According to a recent Reuters report, the investors are concerned that the recent actions by the board to fire OpenAI’s CEO Sam Altman, could cost them millions of dollars:

“Investors worry that they could lose hundreds of millions of dollars they invested in OpenAI, a crown jewel in some of their portfolios, with the potential collapse of the hottest startup in the rapidly growing generative AI sector.”

Learn more: The 6 Hottest Artificial Intelligence (AI) Jobs in 2023

It has been a quick turn around of events for OpenAI. Altman stepping down as CEO and being replaced by CTO Mira Murati was reported only on November 17.

OpenAI’s Recent Intense Period

Shortly after, OpenAI released a statement that said they no longer have “confidence in his ability to continue leading OpenAI.”

However, within a period of five days, Altman returned to the company.

Meanwhile, the future of the company remains uncertain. Furthermore, Altman declared during the five days that he would consider returning only if the entire board resigned.

However, following the announcement that Altman would be returning, he made a post on X. He stated,” I love OpenAI. And everything I’ve done over the past few days has been in service of keeping this team and its mission together.”

He thanked Microsoft CEO Satya Nadella for his support and for helping him make the decision.

“With the new board and with Satya’s [Microsoft CEO Satya Nadella] support, I’m looking forward to returning to OpenAI, and building on our strong partnership with Microsoft.” 

Learn more: ChatGPT vs. Google Bard: A Comparison of AI Chatbots

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Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.
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