Comment by tinco
1 day ago
It's a true power struggle. As a software engineer I have actually fallen into the trap of thinking that because of the law or a contract something would happen. It is a softer power than I expected.
The board wants to make money, that's why they hold shares and positions. If Mullenweg has the power to destroy value, that will be powerful leverage over them. If his employees side with him, if he holds the accounts, they'll have to negotiate carefully.
Of course, you would need a lawyer to determine when this crosses from a civil dispute to a criminal dispute because at some point him using the keys when he's not authorized could be a crime and if they can get the cops involved that certainly changes the dynamic.
This is why Sam Altman is in charge at OpenAI and not the board members that tried to fire him.
I think there’s a few big differences between OpenAI and Automattic:
On the “good for the board” side:
1. OpenAI from the POV of investors has both a pretty high p(massive returns) and a pretty high p(no returns). Even if they’re convinced AI is going to swallow the economy, that doesn’t mean OpenAI wins that. This discourages risky moves.
2. The range in outcomes from a Matt-less Automattic are much less varied than for OpenAI. Replacing him isn’t going to sink the company but it’s also not going to have a massive increase in valuation. It’s purely a decision that he’s a risk factor with his behaviour.
3. I’m sure there’s many good staff members in Automattic, but the work they do is pretty standard and understood, so there’s fewer irreplaceable individuals if any of them quit in support of Matt.
4. Because OpenAI is relatively new and has had such high growth, there were both a lot of true believers among the staff that it had to be Altman, and people who had a significant portion of their net worth locked into yet untradable shares that did not want the boat rocked.
5. What openAI hopes to achieve in marketing and policy requires a figurehead and only Altman had mass recognition. Matt’s public awareness is much lower and Automattic’s need for a public facing figurehead is lower.
In the pro-Matt factors:
1. Altman did not have an outright majority of the shares, Matt does
2. He did somewhat prepare by doing waves of voluntary severance to get his internal opponents to leave
Wait, sorry, what, Matt has an outright majority of the (voting) shares?
That changes everything, he can just fire the board members, he's the actual boss (as shareholder) even when he's also their employee (as CEO).
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OpenAI was a charity, and the alternative was a mass move to Microsoft.
Though somewhat of a digression I'd just like to jump in so the world doesn't forget that OpenAI was not a company with a valuation at all, it was a charity for the public benefit and is now in private hands, having been basically stolen by any reasonable definition of the word.
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A big part in both stories is that the boards were unwilling to actually state what exactly the CEO did wrong or why they have lost confidence - be that professionalism or not wanting to deliver ammunition for lawfare - which perfectly sets up the CEO to position himself as a victim to the greed and power games of the shadowy board
> A big part in both stories is that the boards were unwilling to actually state what exactly the CEO did wrong or why they have lost confidence - be that professionalism or not wanting to deliver ammunition for lawfare - which perfectly sets up the CEO to position himself as a victim to the greed and power games of the shadowy board
Which is really insane when you think about it. The CEO reports to the board, and since when have companies regularly provided real reasons for termination (I understand they try to say as little as possible, because there's no upside for them)?
It's a coup when an underling "fires" his boss and takes control, but some CEOs managed to convince many that it's the opposite (or at least AstroTurf to that effect).
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But no one (within a decimal point or two of zero) believes that about either CEO.
Were the OpenAI board members qualified to board members, they seemed like thay had no idea what they were doing.
> why Sam Altman is in charge at OpenAI and not the board members
Did OpenAI have a corporate board try to fire Sam? Or a non-profit board?
What is the distinction you’re trying to make here?
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It's already criminal from the sound of it
But that's less interesting for the involved parties. The more interesting question for them: Will it make us more money?
Yeah, but I am doubtful that the board wants to involve the police.
> I am doubtful that the board wants to involve the police
They're almost certainly going to get sued by minority shareholders over this.
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Up next, the leaking of the boards internal communications. All the dirty laundry - more at 11.