Sam Altman was fired for 'lying to board,' alleges former OpenAI board member

Altman has allegedly hidden his ownership of the OpenAI Startup Fund, according to the former OpenAI board member.
Altman has allegedly hidden his ownership of the OpenAI Startup Fund, according to the former OpenAI board member.

Sam Altman was reportedly dismissed from OpenAI for allegedly withholding information from the board, according to a former board member.

The artificial intelligence (AI) development firm’s CEO allegedly lied to board members before they decided to fire him, according to Helen Toner, a former board member at OpenAI.

Toner said during a Ted AI podcast episode published on May 28:

“For years, Sam has made it really difficult for the board to do their job, by withholding information, misrepresenting things that were happening at the company, in some cases outright lying to the board.”

As an example of withholding information, Toner claimed that Altman had not informed the board members about the release of OpenAI’s ChatGPT. Toner said:

“When ChatGPT came out in November 2022, the board was not informed in advance about that. We learned about ChatGPT on Twitter.”

Cointelegraph has approached OpenAI for comment.

Altman was ousted from the board and briefly dismissed from his role as OpenAI’s CEO in November 2023 for allegedly being “not consistently candid in his communications with the board.”

However, the company’s employees were not happy with the decision. Out of 700 staff, 505 signed a letter demanding that the board resign. As a result, Altman was reinstated within a few days.

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OpenAI’s board is responsible for making critical safety and security recommendations for the firm’s projects. However, this was allegedly made difficult due to a lack of transparent communication by the company’s CEO.

Altman has allegedly hidden his ownership of OpenAI’s startup fund: Toner

Founded in 2021, The OpenAI Startup Fund is a $175 million venture capital fund investing in AI, technology, healthcare and education companies creating a positive global impact.

Altman has allegedly hidden his ownership of the OpenAI Startup Fund from the board members, according to Toner. She said:

“Sam didn’t inform the board that he owned the OpenAI Startup Fund, even though he was constantly claiming to be an independent board member with no financial interest in the company.”

OpenAI has changed the fund’s governance structure, so it is no longer owned or controlled by Altman, according to a March 29 filing with the United States Securities and Exchange Commission (SEC).

The fund has since been controlled by Ian Hathaway, a partner at the fund since 2021.

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