Balancing ethics and competition: the OpenAI board’s leadership dilemma

Research methodology This case was developed using secondary sources, including newspapers, periodicals, podcasts and academic references. Case overview/synopsis In mid-November 2023, the public-good-oriented OpenAI board took a dramatic step: it ousted cofounder and chief executive officer (CEO) Sam Altman. Board members believed that removing Altman was the only way to uphold the organization’s mission “to build artificial general intelligence (AGI) that is safe and benefits all of humanity.” Yet, within a single weekend, they reversed course. Just days after declaring him unfit to lead, they reinstated him. Where did the board go wrong – by firing Altman or by bringing him back? Instead of introducing students to a specific analysis framework, this case develops critical thinking abilities through thoughtful, multilevel prompting and discussion-based activities. This case invites students to examine the intense pressures the OpenAI board faced during this high-stakes leadership decision-making process. In evaluating the decision to rehire Altman, students will grapple with the tension between acting ethically and the demands of staying competitive. Complexity academic level Upper-level undergraduate students in a strategic leadership course or in a strategy course embedded within the chapter on leadership