OpenAI's Turmoil Raises Concerns Among Investors Ahead Of 'Mega Funding Round' (Image:OpenAI)

Sam Altman’s OpenAI is facing a leadership crisis with three top executives suddenly resigning from their executive roles on Thursday. This comes as the company prepares for a record-breaking $6.5 billion funding round valuing it at $150 billion, as per Business Insider. CTO Mira Murati, Chief Research Officer Bob McGrew, and Research Barret Zoph have left the company on account of their interest and have announced it on social media platforms. Murati’s resignation follows cofounder John Schulman’s departure in August to join rival Anthropic PBC ( U.S.-based AI startup). It was said that OpenAI’s upcoming funding round which is led by Nvidia, Apple, and UAE-backed MGX may value the company at $150 billion.

Some investors worry about OpenAI’s constant power struggles and leadership changes on account of this sudden departure. “OpenAI is the hottest deal in venture capital history, but investors should be wary,” said Joe Aaron, founding partner at TRAC. Other investors question whether OpenAI can justify its valuation given its cash burn rate. “They need to believe this will generate enormous cash flow,” said an early-stage tech investor. OpenAI‘s technological advantage is significant and it has gained momentum for its recent innovations, yet, some investors fear it may squander this lead. “The top management team has said people are everything at OpenAI,” said a growth-stage investor.

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Despite concerns, many investors trust CEO Sam Altman’s vision for OpenAI’s future. “Sam Altman has proven himself to be one of the greatest tech founders of this generation,” said a seasoned startup executive. OpenAI’s potential to revolutionise AI also makes some investors willing to overlook short-term stating it as a melodrama. “Turmoil is temporary, but changing the world is eternal,” said Ben Narasin, founder of Tenacity Venture Capital.

It was on Thursday, that Mira Murati, the Chief Technology Officer of OpenAI, announced her departure from the organisation after six and a half years of service. In a heartfelt message, Murati expressed her gratitude to OpenAI co-founders Sam Altman and Greg Brockman for their trust and support throughout her tenure. Reflecting on her time with the company, she highlighted the significant advancements made in artificial intelligence (AI) and emphasised the teamwork that led to breakthroughs in areas like speech-to-speech and the OpenAI o1 release.

(With inputs from Business Insider)

Also, read| Mira Murati Leaves As OpenAI CTO