OpenAI announced late Wednesday that it has appointed Fidji Simo, the CEO of Instacart, to oversee the artificial intelligence company’s business and operations teams in a new role.
Sam Altman, OpenAI’s CEO, shared in a blog post that he will continue to lead the company. However, Ms. Simo’s role as head of applications will allow him to concentrate on other critical areas of the organization, such as research, computing, and safety systems, he noted.
“We’ve evolved into a global product company serving hundreds of millions of users worldwide, showing remarkable growth,” Mr. Altman mentioned in the blog post. He also noted that OpenAI has developed into an “infrastructure company” that provides artificial intelligence tools on a large scale.
“Each of these aspects represents a significant venture that could stand alone as a large business,” he wrote. “Bringing in exceptional leaders is crucial for executing that effectively.”
Ms. Simo, who is also on OpenAI’s board, will oversee sales, marketing, and finance, reporting directly to Mr. Altman.
OpenAI, which sparked significant interest in A.I. through its ChatGPT chatbot, has experienced rapid growth while managing various initiatives—sometimes facing challenges. The San Francisco firm has consistently released new A.I. models and products, including ones capable of “reasoning.” In March, it concluded a $40 billion fundraising round led by Japanese conglomerate SoftBank, valuing the company at $300 billion and positioning it as one of the most valuable private firms globally.
However, OpenAI, initially established as a nonprofit, has faced difficulties transitioning to a new corporate structure. As the commercial prospects of artificial intelligence have increased, the organization attempted to distance itself from nonprofit oversight. This has drawn criticism from figures like Elon Musk, an OpenAI co-founder who has sued the company, claiming it prioritizes profit over A.I. safety. Additionally, attorneys general from California and Delaware have examined the restructuring closely.
On Monday, OpenAI reversed its decision and announced that the nonprofit will continue to have authority over the company.
(The New York Times has filed a lawsuit against OpenAI and its partner Microsoft, alleging copyright infringement regarding news content about A.I. systems. OpenAI and Microsoft have denied these allegations.)
In a statement late Wednesday, Ms. Simo expressed that OpenAI “holds the capability to accelerate human potential in ways previously unseen, and I am fully committed to guiding these applications for the public good.”
In a memo to Instacart employees, she mentioned her “enthusiasm for A.I. and especially its potential to combat diseases,” and noted that “leading such an essential part of our collective future was an opportunity too significant to decline.”
Ms. Simo will remain with Instacart for the next few months until a successor is appointed, a position she indicated would be filled by someone from Instacart’s management team. Additionally, she will stay on the board as its chairperson.
“Today’s announcement does not indicate any changes to our business or operations,” Instacart stated.