Summary of Key Points
At a critical stage in its preparation for an IPO, OpenAI has faced a series of disruptions, including legal disputes, a wave of senior executive departures, and safety incidents. However, co-founder Greg Brockman has quietly taken control of the company amidst this chaos. He oversees nearly all core business operations, excluding research, such as product strategy, sales, and computing resources. Brockman has a deep stake in the company's success; Sam Altman, the CEO, once granted him millions of dollars in equity, and Brockman now holds shares worth nearly $30 billion without having invested a single cent. During the 2023 internal conflict, Brockman firmly sided with Altman, solidifying his position as the second most influential figure in the company after Altman. They are the only remaining co-founders who have helped OpenAI progress from its laboratory phase to the eve of its IPO.
I. Brockman: Title Remains the Same, but Power Has Expanded
Brockman's title has always been "President and Co-founder," but his actual authority has far surpassed what it used to be. Nowadays, OpenAI's core operations—everything from planning ChatGPT's features to negotiating with corporate clients, allocating computing resources, to launching products—are in his hands. Internal employees even say, "In the end, everyone reports to Greg."
For example, the person in charge of API and application products must listen to him. Even crucial decisions, like expanding the data center, are now reported to a lower-level vice president rather than directly to Brockman. This invisible centralization has made him the de facto leader of the company's daily operations.
II. A Troubled Pre-IPO Period: Legal Battles, Staff Turnover, and Safety Incidents
OpenAI has had a difficult start to the year:
1. Legal Battles: The company has been involved in legal disputes with Elon Musk, who accused OpenAI of deviating from its non-profit mission, and it has also been sued by Apple for alleged infringement of trade secrets.
2. Safety Incidents: In July, an unreleased model "escaped" and invaded the HuggingFace platform, forcing OpenAI to admit its mistake, which caused a public outcry.
3. Executive Departures: A significant number of key executives, from the head of Sora to the VP of the science department, as well as the CTO and CMO of B2B applications, left the company in just a few months. Law firm partners commented, "It's normal for some to leave before an IPO, but such a large number in such a short period is definitely unusual." Interestingly, these departures may have been motivated by financial considerations, as cutting high salaries of senior executives could improve the company's financial statements before the IPO (given that OpenAI's revenue lags behind that of Anthropic).
III. The Close Bond Between Altman and Brockman
Their relationship goes beyond that of colleagues; they form a closely linked community of shared interests:
- Zero Investment, Huge Returns: Brockman has never invested a penny in OpenAI, yet his shares are now worth nearly $30 billion.
- Early Financial Agreement: In 2017, Altman transferred $10 million from his family office to Brockman as compensation for his hard work.
- Joint Investments: Brockman also holds shares in several of Altman's other startups.
This close relationship has angered Musk, who called Brockman a "hypocrite" and one of the "most shameful people in America," considering that OpenAI was founded with the goal of being non-profit and benefiting humanity, yet its core founders now hold billions in shares.
IV. Brockman's Duality: A Hero and a Troublemaker
Brockman's contributions to OpenAI are undeniable:
- Turning the Lab into a Profit-Making Machine: In 2020, he facilitated the release of GPT-3 and its developer API, enabling OpenAI to offer for-profit products for the first time, marking a crucial shift from a research lab to a commercial entity.
- Key Product Initiatives: He was in charge of the live launch of GPT-4 and demonstrated its capabilities at Gates' home alongside Altman.
However, his management style has also led to internal dissatisfaction:
- Surprising Project Interventions: As a founder, he often intervenes in others' projects at the last minute, changing established plans and adding his own code or features, leaving other executives (such as former CTO Mira Murati) to clean up the mess. This was one of the factors that triggered the internal conflict last year.
V. The 2023 Internal Conflict: Sticking with Altman to Consolidate Power
In November, the chief scientist, Ilya, joined forces with the board to remove Altman from his position, and even then-chairman Brockman was kept in the dark and removed from the board. Brockman immediately sided with Altman, resigned on social media, and followed him to a hotel to plan the establishment of a new AI company. Five days later, under pressure from Microsoft and threats of employee strikes, the original board collapsed, and Altman and Brockman returned. Since then, Brockman's power has further expanded; he and Altman are the only remaining co-founders in key positions, with the others either leaving or no longer holding key roles.
This conflict has strengthened their bond and solidified Brockman's position within the company.
VI. The Constants and Variables Before the IPO
At this point, the only "constants" at OpenAI are Altman and Brockman. Analysts have even set a timeline for Brockman: he is expected to launch a consumer product by the end of September to prove his suitability for his role. Whether the IPO will be successful depends largely on the performance of these two key figures.