OpenAI is facing significant internal turmoil as a new Wall Street Journal report reveals the extent of executive concerns following a series of high-profile departures from the AI company. The exodus includes former CTO Mira Murati, who resigned this week along with two other executives, sending shockwaves through the artificial intelligence industry.
The report details mounting tensions at OpenAI in the 10 months since CEO Sam Altman’s return following his brief ousting in November 2023. According to the Journal’s investigation, executives were particularly alarmed by the departure of cofounder and chief scientist Ilya Sutskever in May 2024, with some fearing the company could collapse entirely.
Sutskever’s exit proved especially concerning for OpenAI leadership. The AI researcher, who was one of the board members who voted to fire Altman, hadn’t returned to work since apologizing for his role in the CEO’s ousting. When he resigned along with Jan Leike, who co-led the company’s superalignment group, their entire team was dissolved. Executives including Murati and President Greg Brockman became so worried about potential cascading departures that they personally attempted to woo Sutskever back, even visiting his home and delivering letters from other employees.
The efforts appeared to be working initially, with Sutskever reportedly considering a return. However, Brockman ultimately rescinded the offer in a phone call, as the company couldn’t determine where Sutskever would fit within the new organizational structure.
Internal concerns about product safety and rushed launches have also emerged. Current and former employees told the Journal that OpenAI has been racing to ship products quickly amid fears of losing competitive advantage. Murati herself reportedly delayed features for GPT-4o, including search and voice interaction capabilities, over concerns they weren’t ready for launch. ChatGPT’s Advanced Voice Mode, announced over four months ago, only began rolling out this week.
The departures come as OpenAI undergoes a significant transformation toward a more traditional for-profit structure. The company is currently raising billions at a potential $150 billion valuation, with CFO Sarah Friar telling investors the funding round should close next week. An OpenAI spokesperson disputed the report’s characterizations while acknowledging the challenges of “evolving from an unknown research lab into a global company” serving hundreds of millions of users.
Key Quotes
evolving from an unknown research lab into a global company that delivers advanced AI research to hundreds of millions of people in just two years requires growth and adaptation
An OpenAI spokesperson provided this statement to Business Insider, acknowledging the challenges the company faces while defending its transformation. This quote reveals how OpenAI views its rapid scaling as both necessary and difficult, though critics argue this growth has come at the expense of safety considerations.
made the difficult decision to leave OpenAl" in order to “create the time and space to do my own exploration
Former CTO Mira Murati announced her departure with this statement on Wednesday. The vague language about ’exploration’ has fueled speculation about her true reasons for leaving, especially given the Journal’s reporting about her concerns over rushed product launches and her attempts to delay GPT-4o features she deemed unready.
while leadership changes aren’t easy, the company remains laser-focused on bringing AI to everyone and building sustainable revenue models
CFO Sarah Friar sent this message to investors following Murati’s departure, attempting to reassure them amid the executive exodus. The emphasis on ‘sustainable revenue models’ underscores OpenAI’s shift toward profitability, which has been a source of internal tension according to departing employees.
Our Take
The OpenAI drama reveals a company at war with itself over its fundamental identity. The desperation to retain Ilya Sutskever—visiting his home with employee letters—shows how critical his departure was perceived internally, yet the inability to find him a role exposes deeper organizational dysfunction. This isn’t just about losing talent; it’s about losing the moral and technical authority that made OpenAI credible.
Murati’s reported delays of GPT-4o features suggest she was one of the last guardrails against reckless shipping. Her departure, along with other safety-focused leaders, leaves Altman with fewer internal checks on his aggressive commercialization strategy. The $150 billion valuation creates enormous pressure to deliver returns, potentially at the expense of the careful, safety-first approach OpenAI originally championed. We may be witnessing the transformation of AI’s most important company from mission-driven research organization to just another Silicon Valley unicorn chasing growth at any cost.
Why This Matters
This story represents a critical inflection point for the world’s most prominent AI company and raises serious questions about the future of artificial intelligence development. OpenAI’s internal struggles highlight the fundamental tension between rapid commercialization and responsible AI safety practices—a debate that will shape the entire industry’s trajectory.
The attempted retention and subsequent rejection of Ilya Sutskever, one of AI’s most respected researchers, signals potential brain drain at the company leading the generative AI revolution. When key technical talent departs, it can significantly impact innovation and safety oversight. The fact that executives feared complete collapse demonstrates how fragile even the most valuable AI companies may be.
For businesses and society, OpenAI’s transformation from research lab to profit-driven corporation has profound implications. The company’s products, including ChatGPT and GPT-4, are being integrated into countless applications and workflows globally. Rushed product launches and diminished safety protocols could expose millions of users to unforeseen risks. Additionally, the $150 billion valuation and ongoing funding round show how much capital is flowing into AI, potentially creating bubble conditions that could destabilize the broader tech economy if confidence wavers.
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