Sam Altman’s Counter-Rebellion Leaves OpenAI Leadership Hanging in the Balance
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Sam Altman’s Counter-Rebellion Leaves OpenAI Leadership Hanging in the Balance

AI startup’s ousted chief executive tries to negotiate his return

By Berber Jin
Mon, Nov 20, 2023 9:52amGrey Clock 3 min

SAN FRANCISCO—Two days after Sam Altman was ousted from OpenAI, he was back at the company’s office, trying to negotiate his return.

The former chief executive officer entered with a guest badge on Sunday and posted on X: “first and last time i ever wear one of these.”

The leadership of the company that created the hit AI chatbot ChatGPT remained unclear Sunday, as investors and many employees pushed over the weekend to restore Altman. He has been engineering a countercoup to retake control of one of Silicon Valley’s most valuable and high-profile startups.

The abrupt shake-up at OpenAI turns on one of the oldest tales in Silicon Valley: a breakup between a founder and his board.

But in this case it was a very particular kind of founder—the face of Silicon Valley’s artificial-intelligence revolution—and a very particular kind of board, which was tasked with making social good a priority over profit. The rupture threatens the future of the company and the billions of dollars investors had put into it.

Altman has also been considering starting his own venture, potentially with talent from OpenAI. He is pursuing both tracks: On Sunday morning, Chief Technology Officer and interim CEO Mira Murati sent a note to staff saying Altman would be returning to the San Francisco office later that day as discussions to reinstate him continued.

Over the weekend, Altman made clear to his allies that if he does return, he wants a new board and governance structure, people familiar with the matter said.

Two days after the board fired Altman, different explanations persisted for the initial firing. The board said Friday it pushed out the CEO after it concluded he hadn’t been candid with the company’s directors. It didn’t elaborate.

Over the weekend, people close to Altman said the ouster had more to do with disputes around the safety of the company’s artificial-intelligence efforts and a power struggle with one co-founder and board member in particular, Ilya Sutskever.

On Sunday, a person familiar with the board stood by the board’s statement citing Altman’s lack of candor. This person said there was no single precipitating incident but rather a mounting loss of trust over communications with Altman that led it to remove him as CEO. The person declined to offer examples.

The ouster from OpenAI wasn’t the first time Altman was asked to leave a company. Several years ago, senior leaders at the venture firm Y Combinator asked Altman to step down as president after mounting concerns about the time he was spending on his other business endeavours, including at OpenAI, according to investors briefed by the venture firm’s executives—information not previously reported.

In addition to OpenAI, Altman recently hatched plans for two new business endeavours. He enlisted Apple’s former chief design officer, Jony Ive, to create a consumer hardware device. And he recently spent weeks in the Middle East gauging investor interest for a new startup aiming to create low-cost chips needed to train OpenAI’s artificial-intelligence models, people familiar with the matter said.

It is unclear whether those efforts, or the communication around it, played into Altman’s dismissal. Bloomberg earlier reported on the new chips venture. The Information and the Financial Times earlier reported the new Ive venture.

With his firing from OpenAI, Altman quickly got the upper hand in terms of public messaging. The board didn’t use a communications or law firm in its dealings, people familiar with the board said, expecting that the OpenAI team would help them. But Altman had loyalty from investors and employees.

The board ended up isolated as social media exploded with shock and support for Altman. His largest backers, including Microsoft and Thrive Capital, immediately on Friday began pressing for Altman’s position to be restored. Microsoft CEO Satya Nadella began working with Altman that evening on his next steps, people familiar with Altman said.

Despite his business success, Altman had been losing the support of a board whose constituents changed as the company’s commercial efforts powered ahead. It was a board structure that he had ironically helped create and publicly promoted as he encountered questions about AI safety.

Before Friday’s dust-up, the board consisted of six people, including Altman. Then, it abruptly removed Greg Brockman, OpenAI’s president and a close friend of Altman’s, and voted to oust Altman. None of the four board members remaining were affiliated with the company’s big investors. It isn’t clear whether the vote was unanimous.

The board that took the action was down from the nine seats it had earlier in the year and lacked at least one key prior Altman backer. Earlier this year, Reid Hoffman, a Silicon Valley venture capitalist with a long history of supporting Altman, stepped down after starting a rival company to OpenAI.

Separately, Shivon Zilis, a tech executive at Elon Musk’s brain-implant startup Neuralink, and Will Hurd, who started a presidential campaign, also left this year.

The board had been working to fill those empty seats for months, though the process stalled, according to a person familiar with the matter.

The other four directors are: Adam D’Angelo, a former Facebook executive and the founder of the question-and-answer website Quora; Tasha McCauley, an adjunct senior management scientist at Rand; Helen Toner, a director at a Washington nonprofit; and OpenAI’s chief scientist, Sutskever.

Altman this weekend was furious with himself for not having ensured the board stayed loyal to him and regretted not spending more time managing its various factions, people familiar with his thinking said.



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The Casual Footwear Boom Is Over. It’s Bad News for Adidas.

The pandemic-fuelled love affair with casual footwear is fading, with Bank of America warning the downturn shows no sign of easing.

By SABRINA ESCOBAR
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The boom in casual footware ushered in by the pandemic has ended, a potential problem for companies such as Adidas that benefited from the shift to less formal clothing, Bank of America says.

The casual footwear business has been on the ropes since mid-2023 as people began returning to office.

Analyst Thierry Cota wrote that while most downcycles have lasted one to two years over the past two decades or so, the current one is different.

It “shows no sign of abating” and there is “no turning point in sight,” he said.

Adidas and Nike alone account for almost 60% of revenue in the casual footwear industry, Cota estimated, so the sector’s slower growth could be especially painful for them as opposed to brands that have a stronger performance-shoe segment. Adidas may just have it worse than Nike.

Cota downgraded Adidas stock to Underperform from Buy on Tuesday and slashed his target for the stock price to €160 (about $187) from €213. He doesn’t have a rating for Nike stock.

Shares of Adidas listed on the German stock exchange fell 4.5% Tuesday to €162.25. Nike stock was down 1.2%.

Adidas didn’t immediately respond to a request for comment.

Cota sees trouble for Adidas both in the short and long term.

Adidas’ lifestyle segment, which includes the Gazelles and Sambas brands, has been one of the company’s fastest-growing business, but there are signs growth is waning.

Lifestyle sales increased at a 10% annual pace in Adidas’ third quarter, down from 13% in the second quarter.

The analyst now predicts Adidas’ organic sales will grow by a 5% annual rate starting in 2027, down from his prior forecast of 7.5%.

The slower revenue growth will likewise weigh on profitability, Cota said, predicting that margins on earnings before interest and taxes will decline back toward the company’s long-term average after several quarters of outperforming. That could result in a cut to earnings per share.

Adidas stock had a rough 2025. Shares shed 33% in the past 12 months, weighed down by investor concerns over how tariffs, slowing demand, and increased competition would affect revenue growth.

Nike stock fell 9% throughout the period, reflecting both the company’s struggles with demand and optimism over a turnaround plan CEO Elliott Hill rolled out in late 2024.

Investors’ confidence has faded following Nike’s December earnings report, which suggested that a sustained recovery is still several quarters away. Just how many remains anyone’s guess.

But if Adidas’ challenges continue, as Cota believes they will, it could open up some space for Nike to claw back any market share it lost to its rival.

Investors should keep in mind, however, that the field has grown increasingly crowded in the past five years. Upstarts such as On Holding and Hoka also present a formidable challenge to the sector’s legacy brands.

Shares of On and Deckers Outdoor , Hoka’s parent company, fell 11% and 48%, respectively, in 2025, but analysts are upbeat about both companies’ fundamentals as the new year begins.

The battle of the sneakers is just getting started.

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