OpenAI's "collapse" fears reportedly date back to Chief Scientist Ilya Sutskever's abrupt departure — beyond recent bankruptcy reports with projections of $5 billion in losses within the next 12 months

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High-level executives at OpenAI feared the AI firm would collapse following Chief Scientist Ilya Sutskever's abrupt departure.

Sam Altman (C), US entrepreneur, investor, programmer, and founder and CEO of artificial intelligence company OpenAI, and the company's co-founder and chief scientist Ilya Sutskever (R), speak together at Tel Aviv University in Tel Aviv on June 5, 2023.
Former OpenAI Chief Scientist Ilya Sutskever at a conference (Image credit: Jack Guez | AFP via Getty Images)

What you need to know

  • According to a new report, high-profile execs at OpenAI feared the firm would collapse after Chief Scientist Ilya Sutskever abruptly left to focus on a "personally meaningful" project.
  • The executives reportedly tried to get the Chief Scientist to return to work, but it proved difficult to find a suitable position for the co-founder amid company restructures.
  • OpenAI was reportedly on the brink of bankruptcy with projections of $5 billion in losses within the next 12 months, but it managed to raise billions in a new funding round with NVIDIA and Microsoft at the last minute. 

OpenAI has undergone several restructures in the past few months, following the high-profile departures of Chief Technology Officer Mira Murati, Chief Research Officer Bob McGrew, and Vice President of Research Barret Zoph. As you might recall, even OpenAI CEO Sam Altman was briefly under fire after the board of directors abruptly decided to relieve him of his duties only to hire him back 5 days later due to mounting pressure from staffers.

As it turns out, the recent departure of OpenAI Chief Scientist Ilya Sutskever raised concern among top officials in the firm behind the curtains. Sutskever left OpenAI amid the mass exodus of its safety team with rumors of its prioritization of shiny products over safety processes circulating in the grapevine. He indicated that he was leaving the AI firm to focus on a "personally meaningful project," only to launch Superintelligence Inc. with a keen focus on building safe superintelligence.

According to a new report by The Wall Street Journal, Ilya Sutskever's departure sent shivers down top executives' spines, who expressed their fear of the AI firm collapsing. The executives reportedly tried to get the Chief Scientist back on the team by extending him a new and possibly lucrative deal.

However, their blatant attempt was seemingly received with a cold shoulder as Sutskever continues to push the safe superintelligence mission via his new AI firm, which recently got $1 billion in funding from investors.

While speaking to Business Insider, an OpenAI source refuted the claims highlighted in The Wall Street Journal's report. However, the official admitted that "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."

Behind OpenAI's closed doors...

OpenAI icon is displayed on a mobile phone screen (Image credit: Getty Images | Anadolu)

Before Sutskever's departure, he served as the firm's Chief scientist and a board member who supported Altman's firing. Oddly, the scientist has reportedly not reported to work since Altman was reinstated as CEO. 

OpenAI's head of super alignment Jan Leike also left the firm alongside multiple team members, consequently leading to disbandment of the team. However, the firm quickly formed a new safety team with former OpenAI Chief Technology Officer Mira Murati and President Greg Brockman.

At the time, Brockman and Murati reportedly attempted to get Sutskever to return to work by visiting him at his home accompanied by letters from his colleagues. The Wall Street Journal also reports that Altman visited Sutskever, expressing his disappointment in not finding a role for him amid the company's reorg. 

Sutskever was seemingly coming around and was potentially ready to return to work. However, the efforts were futile after Brockman reportedly rescinded the offer on a phone call, citing difficulty finding a suitable position for the Chief Scientist in the new company structure. 

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Kevin Okemwa
Kevin Okemwa
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Kevin Okemwa is a seasoned tech journalist based in Nairobi, Kenya with lots of experience covering the latest trends and developments in the industry at Windows Central. With a passion for innovation and a keen eye for detail, he has written for leading publications such as OnMSFT, MakeUseOf, and Windows Report, providing insightful analysis and breaking news on everything revolving around the Microsoft ecosystem. You'll also catch him occasionally contributing at iMore about Apple and AI. While AFK and not busy following the ever-emerging trends in tech, you can find him exploring the world or listening to music.