OpenAI investors to sue company over Altman sack

Alex Omenye
Alex Omenye

Some investors in OpenAI, the company that created ChatGPT, are considering taking the board of the company to court, according to a report by Reuters on Monday.

The report claims that investors are researching their alternatives in collaboration with legal counsel. Whether or whether not these investors will sue OpenAI was not immediately apparent.

With the hottest company in the quickly expanding generative AI space, OpenAI, the jewel in some investors’ portfolios, potentially collapsing, investors fear they could lose hundreds of millions of dollars.

Microsoft owns 49 per cent of the operational for-profit company. Semafor claims that other investors and staff hold 49% of the company, with the nonprofit parent of OpenAI owning the remaining 2%.

A “breakdown of communications,” led to the dismissal of Sam Altman as CEO on Friday, according to an internal memo. By Monday, the majority of the company’s more than 700 workers had vowed to quit unless the board was replaced.

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