The OpenAI Talent Exodus: A Golden Opportunity for Rivals?

Last week, when investors invested $6.6 billion into OpenAI, they appeared largely unaffected by the recent turmoil surrounding the company. This upheaval included the sudden resignations of Mira Murati, the chief technology officer, Bob McCrew, the chief research officer, and Barret Zoph, a vice president of research, who abruptly left their positions.

However, these three exits are merely the latest in a continuing trend of significant talent departures. Over recent years, OpenAI has seen a number of researchers, who were instrumental in creating the algorithms, techniques, and infrastructure that established its reputation as a global leader in AI, leave the company. Several former employees who spoke with WIRED noted that a shift towards a more commercial focus has contributed to ongoing tensions within the organization.

“Individuals who prefer research are being compelled to focus on products,” remarked one ex-employee now working at a competing AI firm, who mentioned that some of their contacts at OpenAI have been reaching out in recent weeks to ask about job opportunities. The company itself seems to have altered its hiring focus, as suggested by data compiled for WIRED by Lightcast, an organization that monitors job postings for labor trend analysis. In 2021, 23 percent of OpenAI’s job postings were for general research positions, but by 2024, this figure has dropped to just 4.4 percent.

The loss of skilled personnel may have long-term effects on OpenAI’s trajectory and potential success. Experts and former employees indicate that while the company still possesses substantial talent, the increasing competition is making it harder to maintain its competitive advantage.

The most recent prominent exit announced on Thursday is Tim Brooks, who led OpenAI’s Sora AI video generation initiative. Brooks shared on X that he will be joining OpenAI’s significant competitor, Google DeepMind.

“This could begin to alter the landscape,” notes a former OpenAI employee currently in academia, who chose to remain unnamed due to concerns about jeopardizing cooperative ties within the AI sector.

At present, this individual asserts that many students still rank OpenAI as their preferred employer. The organization is perceived to be several months ahead of its rivals, and potential recruits are often ready to tolerate the visible conflicts and drama to be a part of it. However, applicants frequently seek to collaborate with specific researchers or teams, and their decisions might shift as more notable researchers transition to competing AI firms or establish their own startups.

An examination of some of OpenAI’s key research highlights the extent of talent loss. Out of 31 individuals credited as authors on an early version of OpenAI’s GPT large language model, fewer than half are still employed at the company, based on employment information gathered from LinkedIn or other public social media profiles. Notably, several members of the team that created GPT departed OpenAI in 2021 to launch Anthropic, which has become a significant competitor. Approximately a third of those acknowledged in a technical blog post outlining ChatGPT have since left the organization.

A pivotal question arises concerning OpenAI’s capacity to retain a robust team of AI researchers, which is vital for maintaining its position as a leader in significant AI advancements, crucial to substantiating its soaring valuation.

OpenAI has set an ambitious target to elevate its annual revenue to $100 billion by 2029, as per a report from The New York Times that refers to information disclosed to potential investors. The organization anticipates that ChatGPT will generate $2.7 billion in revenue this year, a considerable increase from $700 million in 2023, complemented by an additional $1 billion from other revenue streams. However, the competitive landscape is becoming more aggressive, with companies like Google investing greatly in rival AI products. The tech giant Meta is offering complimentary AI models and tools that often match the quality of those from commercially focused organizations.

One of the most substantial challenges for OpenAI is filling the shoes of Ilya Sutskever, a cofounder and the technical visionary behind much of the firm’s initial endeavors. Sutskever left in May to establish his own AI venture known as Safe Superintelligence.

Sutskever was instrumental in the early exploration of deep learning and was among the first to advocate that increasing computational resources during model development would lead to more capable AI—a foresight that has certainly proven accurate. He made a significant contribution by recognizing that a neural network framework created by Google researchers called the transformer would be pivotal in enhancing AI’s linguistic abilities.

Sutskever was also part of the board that briefly removed CEO Sam Altman in November 2023, though he later expressed regret and advocated for Altman’s reinstatement a few days afterward. This incident seemingly ignited internal discord regarding Altman’s authority over the company, its focus on commercialization, and its willingness to take risks. Murati frequently found herself at the center of these disputes, as highlighted in a report from The Wall Street Journal, which included concerns about the rushed launch of the company’s voice interface.

Sutskevar’s exit was quickly followed by that of Jan Leike, who co-led a team focused on managing the long-term risks associated with AI. In August, John Schulman, another cofounder of OpenAI and a respected research scientist, also shared that he was departing. Schulman contributed significantly to methods for refining large language models with human input through reinforcement learning, which was pivotal in developing a capable and engaging chatbot like ChatGPT. Another prominent figure to leave this year was Andrej Karpathy, a cofounder who returned to the company in 2022 after serving as Tesla’s AI director. Karpathy departed in February 2024 to establish Eureka Labs, an AI education startup.

An early OpenAI employee, who chose to remain anonymous due to restrictions from their current employer, remarked that these departures are critical due to the substantial contributions these individuals made to OpenAI’s research efforts. However, they also pointed out that OpenAI still has many exceptionally talented young researchers and the capability to offer substantial financial incentives for new talent, bolstered by its increasing valuation.

The latest investment round for OpenAI is occurring as the company aims to transition into a for-profit entity. The original founders included Elon Musk, who provided $45 million in initial funding. After Musk left the organization, Altman restructured it into a capped for-profit organization governed by a board that does not report to investors. The attempted coup in November highlighted the tension between this governance model and the rapid growth of a well-financed tech enterprise.

One former OpenAI employee, who requested to remain unnamed, confirmed that ongoing product focus has led to tensions within the company, and current staff have hinted at potential further unrest.

Opinions among former employees suggest that the atmosphere at the company is multifaceted. “The mood is bleak for some and not for others,” remarked one individual.

In response to inquiries about the situation, OpenAI directed WIRED to a message from Altman sent to staff following the exits of Murati, McGrew, and Zoph, which he also shared on X. In this communication, Altman outlined several researchers stepping into elevated positions, such as Mark Chen, who will take on the role of senior vice president of research, and Jakub Pachocki, who will serve as the company’s chief scientist.

“Changes in leadership are a common occurrence in companies, particularly those that expand rapidly and face significant demands,” Altman stated. “I won’t claim that it’s typical for this transition to be so sudden, but we are not a typical organization.”

“If you believe that a few individuals possess unique abilities that are irreplaceable, and they’ve just departed, that poses a concern,” states Simon Johnson, a professor at MIT’s Sloan School of Management.

Nonetheless, Johnson suggests that the departure of talent from OpenAI might ultimately benefit the broader tech sector.

“We urgently require increased competition in AI; we need diverse business models; and we need more intelligent individuals devising innovative solutions,” he remarks. “Therefore, I feel quite optimistic about the exits.”

Following the ousting of CEO Sam Altman by OpenAI’s board in November, employees threatened to resign in dissent, rallying around the phrase “OpenAI is nothing without its people” on X. The organization appears set to assess just how essential some of its prominent figures truly are.

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