OpenAI’s Severance Saga

From 11 cofounders down to 3 — and what to do if you were them

Tim He
September 08, 2024 • Est. Reading Time: 4 minutes

Hey, I’m Tim! ☕

Previously, you read about Greg Brockman, the cofounder of OpenAI who quit in a heartbeat after learning that Sam Altman was fired by the board.

Apparently that wasn’t enough drama.

A couple days ago, another cofounder, John Schulman, walked out the door and straight into the arms of their biggest rival, Anthropic.

Here’s the one thing to remember: everybody does what’s best for them, whether you like it or not, no matter how much it hurts.

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Let’s get into it ⤵

“Winning isn’t getting ahead of others, it’s getting ahead of yourself” — Roger Staubach, Presidential Medal of Freedom recipient.

Art by Mary Amato

John abandoned OpenAI for their rival Anthropic, citing his desire to "focus on AI alignment" and getting more "hands-on technical work."
AI alignment means aligning AI with human values, something Anthropic, founded by ex-OpenAI researchers, prioritizes heavily.
OpenAI has been John’s only gig. He joined straight out of grad school 9 years ago and never looked back. Until now.
To add insult to injury, Greg (the one who quit) is now on sabbatical and several heads of product and research have also exited.

A hot take: don’t try to convince your cofounders to stay if they’ve made up their mind. They have to do what’s best for them.
If you convince them and it works, they feel FOMO. If you can’t convince them, you feel rejected. Lose-lose situation.
You keep people by genuinely showing that you value them. You also define and directly productivity together so it aligns with their goals.
If you or your cofounder are on the fence about leaving, decide fast either way. Prolonging it damages your friendship and your company.

Psst… enjoying this? Share this link with a friend. You could save a cofoundership.

I learned the lesson above the hard way when 3/5 cofounders drifted away over time from my first startup to focus on other commitments.
The current OpenAI situation feels a lot like a “it’s not you, it’s me” scenario. Maybe I’m reading too far into it.
John’s switch makes you wonder if he’s really driven by “AI alignment” or if he just couldn't stand OpenAI’s internal chaos.
Some say that cofounder unity is romanticized and that disagreements can be fundamental incompatibilities that signal it’s time to part ways.

Equity impact, stock buyback, severance, transition of duties— this video explains how to handle all of those if a cofounder leaves.
Here’s a more candid forum thread about leaving a startup you cofounded. They even mention OpenAI.
Want more advice for entrepreneurs from entrepreneurs? Check out Thentrepreneur for breakdowns and lessons from top startups.
Don’t want to get left behind? Find out what’s trending with other founders at Foundcy.

Make sure your cofounder sees this — either pass it along or get them to subscribe. A solid relationship takes everyone's effort.

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PS: I’m teaching a 6-week online cofounder course with Startup Grind starting October 15. Registration info dropping soon.

Tim He
Founder & CEO