OpenAI Appoints Instacart CEOs to Oversee Business and Operations

OpenAI announced late Wednesday that it has appointed Fidji Simo, the former CEO of Instacart, to lead its business and operations team.

In a blog post, OpenAI’s CEO Sam Altman stated he will continue to serve as the head of the company. Simo’s new role as application chief executive will allow Altman to focus on other critical aspects of the organization, such as research, computing, and safety systems.

“We have transformed into a global product company that serves hundreds of millions of users and grows rapidly,” Altman mentioned in his blog. He also noted that OpenAI has evolved into an “infrastructure company” delivering AI tools at scale.

“Each of these initiatives represents a significant endeavor that could stand alone as a large enterprise,” he wrote. “Attracting exceptional leaders is crucial for doing this effectively.”

Simo, who is on OpenAI’s board, will oversee sales, marketing, and finance while reporting directly to Mr. Altman.

As OpenAI announced its AI innovations with the ChatGPT chatbot, the company has experienced rapid growth and has been managing various initiatives. Based in San Francisco, it has consistently introduced new AI models and products, including various inferencing systems. In March, the company completed a $40 billion funding round, led by the Japanese conglomerate SoftBank, raising its valuation to $300 billion, positioning it among the world’s most valuable private companies.

However, as a nonprofit organization at inception, OpenAI faces challenges with its transition to a new corporate structure. With the increasing commercial viability of AI, the company has been moving away from its nonprofit roots, attracting scrutiny from critics like Elon Musk, the co-founder of OpenAI, who has sued the company, alleging it prioritizes profit over AI safety. Both the California Attorney General and Delaware authorities are looking into this restructuring.

On Monday, OpenAI indicated that their plan would support the nonprofit aspect, ensuring it retains some control.

(The New York Times has filed a lawsuit against OpenAI and its partner Microsoft, accusing them of copyright infringement related to news content concerning AI systems. OpenAI and Microsoft have denied these allegations.)

In a statement released later on Wednesday, Simo expressed her belief that the opportunity “could accelerate human potential at an unprecedented pace, and I am wholeheartedly committed to steering these applications for the public good.”

In a memo to her Instacart team, she conveyed her “passion for AI, especially its potential to cure diseases,” emphasizing that “leading such a pivotal part of our collective future is an opportunity I cannot pass up.”

Simo will remain at Instacart for the next few months while the company finds her successor, indicating this role will be taken over by members of Instacart’s management team. She will also retain her position on the company’s board of directors as chair.

“Today’s announcement does not signify any changes in our business operations,” Instacart affirmed in a statement.