OpenAI: Idealism Meets Capitalism

In November 2023, the board of OpenAI, one of the most successful companies in the history of technology, decided to fire Sam Altman, its charismatic and influential CEO. Their decision shocked the corporate world and had people wondering why OpenAI had designed a governance structure that made such a decision possible. In the last year, the company had introduced ChatGPT, the fastest growing app in history, and achieved a valuation of almost $90 billion. Altman had become the public face of AI and was instrumental in making the remarkable progress possible. Over five chaotic days, the company went through three CEO changes, had 90 percent of its employees almost move to Microsoft, and saw five of the six original members of the board resign and be replaced by two new members. The extraordinary high-stakes saga brought together the combustible mixture of idealism, capitalism, and power in the context of different world views of the promise and peril of the AI revolution. The case traces the history of modern AI, OpenAI’s groundbreaking developments, its wrestle with the dual forces of commercial success and ethical responsibility, and finally its dramatic leadership upheaval. By highlighting the challenges of balancing advancing AI technology with protecting humanity’s interests, the case offers a comprehensive exploration for educators in leadership, strategy, technology, ethics, and governance.