OpenAI Shakes Up Leadership as Brockman Takes the Reins of Key Projects

OpenAI has a new number two. Co-founder Greg Brockman is now officially running the company's most profitable and high-profile operations, following the departure of product chief Fidji Simo. Simo, a former Meta executive and ex-CEO of Instacart, stepped down Thursday after a year in the role, citing a chronic health condition called Postural Orthostatic Tachycardia Syndrome (POTS). She had been on medical leave since April and will now serve as a part-time advisor.

Brockman, who had already taken over product duties during Simo's absence, will continue overseeing ChatGPT's business operations, along with the company's go-to-market teams, enterprise clients and computing initiatives. Reporting directly to CEO Sam Altman, he faces mounting pressure to generate revenue and justify OpenAI's $852 billion valuation as the company prepares for a highly anticipated IPO. OpenAI confidentially filed its prospectus in June, though the debut has reportedly been pushed to next year. Meanwhile, competition is heating up: ChatGPT's market share dipped below 50% for the first time in March, and rivals like Anthropic, Google and Elon Musk's xAI are gaining ground.

Brockman and Altman have been close allies since co-founding OpenAI in 2015 alongside Musk and others. When Altman was briefly ousted as CEO in 2023, Brockman quit in solidarity - both returned days later. The duo also weathered a high-profile lawsuit from Musk earlier this year, with Brockman testifying in federal court that the technology they're building represents "the most important technological shift in human history." A jury ruled in OpenAI's favor, finding Musk had waited too long to sue. The company has no plans to replace Simo, with finance chief Sarah Friar and strategy chief Jason Kwon now reporting directly to Altman.

Source: CNBC