OpenAI is gearing up for what’s expected to be a historic IPO launch. But as the company races to prepare the ChatGPT maker for its initial public offering \u2014 and works to justify its $852 billion valuation \u2014 it’s facing a new challenge: a talent exodus. <\/p>\n
According to the Financial Times (FT), OpenAI has faced internal reorganizations<\/a> this year, including executive shuffles and several senior departures. <\/p>\n Must Read <\/p>\n Current and former employees the FT spoke with said staff have even been cashing out their pre-IPO shares of OpenAI, with several making more than $10 million. At least two people the FT spoke to said staff were feeling “burnt out” and “frustrated” with the constant reorganizations \u2014 and saw the tender sales as a way out. <\/p>\n Executive exits and staff reorganizations <\/p>\n The latest high-profile exit was OpenAI’s chief revenue officer Denise Dresser, who was appointed to the role in December. According to two investors who spoke with CNBC<\/a>, OpenAI’s financial backers were surprised by Dresser’s announcement, but they reportedly said the chaos is part of the company’s fast-moving culture. <\/p>\n Dresser isn’t the only executive to part ways with OpenAI. Just four months after she was hired, operating chief Brad Lightcap left his position for a new role. <\/p>\n Fidji Simo, who was considered OpenAI CEO Sam Altman’s number two, left her full-time role in July after a period of medical leave. She left her job as CEO of Instacart to join OpenAI and is still conducting an advisory role with the ChatGPT maker. <\/p>\n Other executives including Kevin Weil, who served as the vice president of OpenAI for Science and marketing chief Kate Rouch, left the company in April. Josh Achiam, Johannes Heidecke and Chlo\u00e9 Bakalar (who all worked on AI safety) have also departed. Bakalar left after less than a year with the company. <\/p>\n And it isn’t just departures that have staff frustrated. <\/p>\n According to the FT, OpenAI disbanded its “preparedness” team at the end of July, a group meant to assess whether its models could pose severe or catastrophic risks. Senior staff have reportedly been reassigned to responsibilities in different areas of preparedness within already existing teams. <\/p>\n Read More: Vanguard reveals what’s coming for U.S. stocks \u2014 and it could be bad news for this group of investors<\/a> <\/p>\n OpenAI prepares for a blockbuster listing <\/p>\n The recent exits have reportedly been presented as part of a streamlining process ahead of the company’s highly anticipated IPO. It also follows Altman’s directive to staff to cut back on “side quests.”<\/a> <\/p>\n Some staff, however, see the management reshuffles as signs of dysfunction, according to the FT, especially during the crucial race to the IPO. <\/p>\n OpenAI had originally been expected to launch its public offering this year but people familiar with the company’s plan told the FT it’s now likely to be next year. OpenAI confidentially filed<\/a> for its IPO in June, but has yet to publicly release a timeline for a future offering. <\/p>\n The staffing woes also come as OpenAI struggles in the AI race. The company was overtaken by rival Anthropic, the maker of Claude, this year. Anthropic is also gearing up to launch its IPO, which could be one of the biggest public offerings<\/a> on record. <\/p>\n The turnover is causing mixed reactions. According to the FT, some see it as a bad sign for OpenAI, while others argue the company is simplifying its executive team before going public. <\/p>\n “I don’t think it’s uncommon to clean up the organisation before going public. You want to know who your people are,” one investor with a large stake in OpenAI told the FT. <\/p>\n What To Read Next <\/p>\n Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now<\/a>. <\/p>\n This article originally appeared on Moneywise.com<\/a> under the title: OpenAI staff are cashing out millions before the IPO because they’re ‘burnt out’ and ‘frustrated’<\/a> <\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind. <\/p>\n","protected":false},"excerpt":{"rendered":"OpenAI is gearing up for what’s expected to be a historic IPO launch. 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