OpenAI Top Layer Quits: CTO Mira Murati, VP Research Barrert Zoph & CRO Bob McGrew Resign

These departures come amidst OpenAI's negotiations for a new $6.5 billion round, which values the company at $150 billion.

The top guns of Microsoft-backed OpenAI have called it quits with the company. The departure of the top technical leaders is the latest in a string of executive departures that have happened this year. The Chief Technology Officer (CTO) of OpenAI, Mira Murati, the VP Research, Barret Zoph, and the Chief Research Officer, Bob McGrew, announced their exit from the company on X.

These departures come amidst OpenAI's negotiations for a new $6.5 billion round, which values the company at $150 billion. However, the negotiations depend on the company upending its corporate structure. 

OpenAI's Shift Of Power To Hamper Negotiations?

According to a report from Reuters on Wednesday, OpenAI plans to transition into a for-profit benefit corporation, with CEO Sam Altman set to receive an equity stake. The company's current structure, where a non-profit board oversees the for-profit entity, is quite unusual and was at the center of Altman’s ousting in November 2023. His removal stemmed from a communication breakdown and loss of trust among board members.

However, Altman was reinstated just five days later. The company is still in the process of closing its latest funding round, with final details yet to be completed.

It remains uncertain if the departure of key executives will have any impact on the fundraising efforts. Some fundraising agreements include a "material adverse change" clause, which gives investors the option to back out if the company faces significant negative events. In the meantime, OpenAI’s Chief Technology Officer Mira Murati is reportedly still working with the company while negotiating her exit. Murati, who has been with OpenAI for six and a half years, briefly held the role of CEO during Altman’s brief absence in November.

OpenAI chief Sam Altman while replying to this wrote, "Mira has been instrumental to OpenAI’s progress and growth the last 6.5 years; she has been a hugely significant factor in our development from an unknown research lab to an important company. When Mira informed me this morning that she was leaving, I was saddened but of course support her decision. For the past year, she has been building out a strong bench of leaders that will continue our progress."

In the same post, Altman also announced a chain of new internal promotions. Matt Knight has been promoted to the post of Chief Information Security Officer, Josh Achiam has been promoted to Head of Mission Alignment, and Mark Chen has been promoted to the post of Senior Vice President of Research.