Who Could Have Predicted That the Powerful Elite Would Triumph in the AI Battle?

The recent upheaval at OpenAI can be viewed from two distinct angles: one, a nonprofit board aimed at fulfilling its mission felt a key leader was straying from those objectives, prompting his dismissal; the other, a group of individuals lacking direction executed a misguided power grab against the company’s true value driver, ultimately facing backlash.

These perspectives aren't mutually exclusive, but when assessed together, one becomes clearly dominant. On one side, the board of a nonprofit was attempting to act in alignment with their values. On the flip side, there existed substantial financial investments in a company that certainly had no desire for its valuation to plummet.

Adding complexity to the situation was Microsoft, who had invested heavily in OpenAI and likely favored a return to stability, given the positive outcomes its investment has yielded thus far.

Consequently, we witnessed activist board members face off against a powerful coalition of money and influence—and it’s clear who emerged victorious: not the board.

Sam Altman has returned, and the newly formed board now consists of influential figures including Bret Taylor, Larry Summers—an economist who played a role in deregulating the U.S. banking sector—and Adam D’Angelo, the CEO of Quora. This lineup, featuring two Silicon Valley veterans and an economist, does not suggest a slowdown in OpenAI's ambitious projects.

Currently, it appears to be Altman’s domain, which may ultimately be beneficial. I state this as someone who is not a so-called AI doomer or a decelerationist. Yet, I do question whether there are adequate checks and balances in place regarding safety at OpenAI. Historically, humans have been adept at exchanging one extreme for another, so it’s unsurprising to see this evolution.

I admit to initially underestimating the formidable force of a multi-trillion-dollar corporation, coupled with billions in investments and considerable public outcry. It's a lesson in business dynamics: when disagreements arise, the more powerful entity often prevails.

Moving forward, I intend to adopt a more cynical perspective; such an outlook will likely serve us all better.

As we approach the American holiday weekend, I predict that by Monday, OpenAI will have evolved further from its original intent and more into an entity focused on generating substantial profit.

Keywords: OpenAI, Sam Altman, nonprofit board, Microsoft, business dynamics, AI industry, investment, checks and balances.