Sam Altman is no longer CEO of OpenAI. Mira Murati, OpenAI’s chief technology officer, has been named interim CEO, the company announced.

Why was Altman ousted? Altman was not consistently candid in his communications with the OpenAI’s board of directors, “hindering its ability to exercise its responsibilities. The board no longer has confidence in his ability to continue leading OpenAI,” according to OpenAI’s statement.

What’s next? OpenAI will begin its search for its next permanent CEO, the company said.

Why we care. Search marketers were shocked to learn of Altman being forced out of OpenAI, the company behind the extremely popular generative AI tool ChatGPT, which launched less than a year ago on Nov. 30, 2022. It has changed the way we work and the direction of search. This will be a story to watch over the next few weeks.

State of ChatGPT. It has 100 million active users – including about 90% of Fortune 500 companies. ChatGPT Plus sign-ups were paused Nov. 14 due to surge in demand, according to Altman. That followed a series of ChatGPT outages due to DDoS attacks.

Reaction. Here are some of the early reactions from the industry:

What OpenAI is saying. Here’s the full statement:

The board of directors of OpenAI, Inc, the 501(c)(3) that acts as the overall governing body for all OpenAI activities, today announced that Sam Altman will depart as CEO and leave the board of directors. Mira Murati, the company’s chief technology officer, will serve as interim CEO, effective immediately.

A member of OpenAI’s leadership team for five years, Mira has played a critical role in OpenAI’s evolution into a global AI leader. She brings a unique skill set, understanding of the company’s values, operations, and business, and already leads the company’s research, product, and safety functions. Given her long tenure and close engagement with all aspects of the company, including her experience in AI governance and policy, the board believes she is uniquely qualified for the role and anticipates a seamless transition while it conducts a formal search for a permanent CEO.

Mr. Altman’s departure follows a deliberative review process by the board, which concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities. The board no longer has confidence in his ability to continue leading OpenAI.

In a statement, the board of directors said: “OpenAI was deliberately structured to advance our mission: to ensure that artificial general intelligence benefits all humanity. The board remains fully committed to serving this mission. We are grateful for Sam’s many contributions to the founding and growth of OpenAI. At the same time, we believe new leadership is necessary as we move forward. As the leader of the company’s research, product, and safety functions, Mira is exceptionally qualified to step into the role of interim CEO. We have the utmost confidence in her ability to lead OpenAI during this transition period.”

OpenAI’s board of directors consists of OpenAI chief scientist Ilya Sutskever, independent directors Quora CEO Adam D’Angelo, technology entrepreneur Tasha McCauley, and Georgetown Center for Security and Emerging Technology’s Helen Toner.

As a part of this transition, Greg Brockman will be stepping down as chairman of the board and will remain in his role at the company, reporting to the CEO.

OpenAI was founded as a non-profit in 2015 with the core mission of ensuring that artificial general intelligence benefits all of humanity. In 2019, OpenAI restructured to ensure that the company could raise capital in pursuit of this mission, while preserving the nonprofit’s mission, governance, and oversight. The majority of the board is independent, and the independent directors do not hold equity in OpenAI. While the company has experienced dramatic growth, it remains the fundamental governance responsibility of the board to advance OpenAI’s mission and preserve the principles of its Charter.