The Open AI Saga

See the Open AI drama that happened leading right up to Thanksgiving?

Anything involving AI is prominent news these days. Especially when it involves the firing of the CEO of biggest company and a leading voice in the technology.

It seemed to me, as an outsider with literally zero knowledge on the facts of what happened, that emotion got the better of Ilya Sutskever and the board at Open AI.

And it looks even more that way now that Altman has been comfortably placed back into his role as CEO, and with a freshly minted board to go along with him.

Let’s get into this week’s newsletter an learn how we can control our emotional decision making better that Sutskever and the Open AI board did…

So in case you didn’t read about this in your Instagram, Facebook, Twitter/X feeds, here is what happened in a nutshell: 

• Altman gets fired by surprise

• The board comes under scrutiny for the decision

• Satya Nadella, CEO of Microsoft steps in as kind of mediator

• 650/700 Open AI employees come out in support of Altman

• Back and forth between parties on what to do next

• Altman rumored to join Microsoft and lead their AI

• Altman put back in as CEO with an entirely new board

Whoah! All that in one week!?

But, inside of all of this news and conjecture as to what really happened is a lesson. And an important lesson. 

It is the lesson of making decisions rationally, and not emotionally. 

Altman was ousted by his Chief Scientist and fellow board member Ilya Sutskever over what was cited as, “Sam’s behavior and lack of transparency in his interactions with the board undermined the board’s ability to effectively supervise the company"

But as we would learn later, the board acted quite hypocritically when it comes to transparency.

Firing Altman and not having much reason for doing so. And, not being open with important stakeholders before making and announcing such a massive decision.

So feeling a lack of trust in Altman, Sutskever got emotional regarding the level of transparency that Altman had while guiding the company. Something to effect of a communication error or at least the perception of one.

Makes sense, these two should be working hand in hand and in the same direction. CEO & Chief Scientist both pulling on the same rope for the same mission.

So Sutsekever relayed his concerns to the board, and in short order they were voting to oust Altman. 

The decision to fire Altman was not just a corporate move; it was a manifestation of a deeper philosophical divide on how AI should evolve and be governed.

In this story, we're reminded of the delicate balance between the pursuit of technological advancement and the responsibility to consider its broader implications.

It's a cautionary tale that underscores the importance of thoughtful, informed, and rational decision-making.

The dramatic decision to fire Sam Altman from his CEO position at OpenAI can be seen as a moment where emotion took center stage over rational deliberation.

It looked to be a knee-jerk reaction to fears about the uncontrollable nature of rapidly advancing AI.

While concerns about AI safety are valid, the decision to oust Altman appeared to be more influenced by emotional apprehensions than a balanced assessment of his leadership and strategic direction.

It highlights the pitfalls of letting fear and emotion dominate decision-making processes, especially in the face of complex and high-stakes situations.

But, the immediate aftermath of Altman's firing brought a critical moment of reflection for Ilya Sutskever.

The decision, while emotionally charged, soon faced scrutiny and reconsideration within the company.

Other board members, 650 of 700 Open AI employees, and Microsoft CEO Satya Nadella all put in their support for Altman in an effort to come to a reasonable resolution.

And that is how we get from a Friday firing of Altman to a Wednesday where he is being put back into his CEO role and the board at Open AI seeing a major overhaul.

The rapid sequence of events following Sam Altman's dismissal from OpenAI culminated in a powerful lesson about the value of rational decision-making.

The initial decision to fire Altman, driven largely by emotional responses to perceived risks, was met with widespread surprise and concern, both within and outside the company.

This reaction prompted a re-evaluation of the decision, highlighting the consequences of letting emotion override reasoned judgment.

The subsequent efforts to reinstate Altman underscored the realization that rational and informed decision-making, grounded in a comprehensive understanding of the situation and its potential implications, is crucial in steering the course of innovative enterprises like OpenAI.

But what could the Sutskever and the board have done differently?

And more importantly, what can you do when faced with decision making scenario that involves emotion.

Open AI Should have Delayed Their Decision-Making

If the Open AI board took the information and position that Sutskever displayed and sat with it for 24 hours, possibly allowing for Altman to clarify his vision and position on matters of safety, they may have avoided all of this turmoil.

They certainly would have avoided the ire of employees, public embarrassment, and negative financial impacts.

Should you be faced with a similar situation, try this:

• Set a Standard Waiting Period: Establish a rule for how long to wait before making a decision, depending on its importance. For example, wait a few hours for minor decisions and a day or more for major ones.

• Reflection Journal: During the waiting period, keep a journal to record your thoughts and feelings about the decision. This helps in identifying if the decision is emotionally driven.

• Consult Data and Evidence: Use the waiting period to gather relevant data and evidence, ensuring that the decision is informed and rational.

The Board Should Have Sought Diverse Perspectives

If the Open AI board had discussed their position on Altman with outsiders, they likely would have been convinced not to fire him.

It’s hard to ignore the power and voice of 93% of your entire company.

Action items for you could be:

• Establish a Diverse Advisory Group: Form a group of individuals from different backgrounds and areas of expertise. Regularly consult this group when faced with important decisions. This could be family, friends, or professional colleagues. All it takes is a simple text message question to get the ball rolling.

• Encourage a Devil’s Advocate: Within your personal team or advisory group, encourage someone to take the devil’s advocate role. I often do this with this very newsletter, seeking opinions on my content choices and the final drafts. Asking my advisors for only critical feedback. This challenged my prevailing opinions and assumptions about the quality of my writing and ideas.

• Seek Out Contrary Information: Actively look for information and opinions that contradict your initial inclination. This could involve reading materials from diverse sources or speaking with individuals who hold opposing views. This is essentially the same as Consulting Date and Evidence above, but with only a contrarian viewpoint.

The Board Should Always Implement Decision-Making Frameworks

Frameworks like a SWOT Analysis, an Eisenhower Matrix, or using a basic Cost/Benefit Analysis could have brought the board to a different conclusion.

At the end of the day, Open AI is a for profit company. Most of the decisions should be viewed through a lens of “will this make us more profitable, and if so when?”

For your large decisions, take these steps to establish a standard and effective framework:

• Choose the Appropriate Framework: Select decision-making frameworks that suit the type of decision. For instance, use SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis for strategic decisions, and the Eisenhower Matrix (urgency-importance matrix) for prioritizing tasks.

• Standardize Framework Usage: Integrate the chosen frameworks into standard operating procedures for your own decision-making. This can be very effective when it comes to how you spend your money.

• Train Yourself: This is effectively a new habit, so you have to train your brain on it to effectively use these frameworks. Learn more about each framework and practice it on smaller everyday decisions. Build that habit one step at a time.

Alright, let's wrap this up…

The OpenAI Saga is more than just digital drama. It's a wake-up call to stop making decisions dripping with emotion playing chess with our brains.

We need to gather intel like spies, welcome a wide range of viewpoints, and not just roll with the first idea that makes some sense.

There is much importance in pausing to assess situations objectively and prioritizing evidence-based analysis over immediate emotional reactions.

If you want to Win more that you Learn, take this one thing away from this…

• Subscribe to this newsletter if it was forwarded to you. And say thank you to your friend for me. (Link)

• Schedule a 30 minute Learning Chat with me. Just to see what ideas we can bounce off each other. (Link)

• Follow my content on Twitter/X - LinkedIn