5 Career Lessons from the OpenAI Coup

JOB SEARCH STRATEGY
UNPRECEDENTED DRAMA.

In 1985, the world was left reeling when Apple's board ousted Steve Jobs, the very visionary who had founded the company.

This event shocked the industry and marked the beginning of a new era in tech leadership dynamics.

Since then, the technological landscape has been relentlessly evolving, adhering to Moore’s law, which predicts the exponential growth in computing power and innovation. Paralleling this technological advancement has been a series of equally dramatic shifts in the corporate world. Founder CEOs, once untouchable icons, have increasingly found themselves vulnerable to the whims of their boards.

The dismissal of Sam Altman from OpenAI was the latest in this series of high-profile tech shakeups. Although such oustings have grown more frequent – from Travis Kalanick’s departure from Uber in 2017 to Adam Neumann’s stepping down at WeWork in 2019 – the case of Sam Altman stood out starkly against its predecessors.

What set Sam’s story apart was not just the absence of the usual scandal or financial woes. OpenAI was on a winning streak, and Sam, revered as the “golden boy” of tech and the "AI brainchild", seemed unassailable. His termination came as a bolt from the blue, leaving the industry both shocked and bewildered.

Yet, the subsequent events – Sam's unexpected re-hiring less than a week later – opened a Pandora's box of insights. It wasn’t just about corporate power plays or boardroom drama. Buried in this unprecedented upheaval were profound career lessons, applicable not only in the volatile world of startups but across the professional spectrum.

In this newsletter, we delve into these lessons, extracting the wisdom hidden within the tumultuous narrative of OpenAI. From aligning with visionary leadership to maintaining professional grace under fire, each twist in Sam Altman’s story offers a masterclass in navigating the complex, often unpredictable world of modern careers.

THE TIMELINE
COME AT THE KING, YOU BEST NOT MISS.

To fully grasp the magnitude of the events at OpenAI, let's review the timeline of this epic tech odyssey.

Day 1 - Thurs, Nov 16: Sam Altman receives a cryptic text from an OpenAI cofounder, summoning him to a Google Meet the next day. Such abrupt, detail-scarce meeting requests are one of the most common signs of trouble and often a layoff or termination.

Day 2 - Fri, Nov 17: In a stunning turn, Sam is informed of his termination from OpenAI. Microsoft, OpenAI's key investor, is looped in mere minutes before the announcement. The world learns of the leadership shake-up through a carefully worded public statement, leaving more questions than answers.

Day 3 - Sat, Nov 18: OpenAI attempts to quell the brewing storm with a memo, clarifying that Sam’s departure was not due to any misconduct or failure in financial, business, safety, or privacy/security practices. Microsoft reaffirms its commitment to OpenAI and the incoming leadership.

Day 4 - Sun, Nov 19: In a stunning twist, Microsoft reveals it has onboarded Sam Altman and his co-founder Greg Brockman to spearhead a new internal AI research unit.

Day 5 - Mon, Nov 20: OpenAI announces Emmet Shear, Twitch co-founder, as the interim CEO. However, the employee response is seismic: over 700 staff members (>95% of the company) draft a letter threatening resignation unless Sam is reinstated as CEO.

Day 6 - Tue, Nov 21: Amidst escalating tensions, OpenAI announces a groundbreaking resolution: Sam will return as CEO under a restructured company board and with new board members.

Day 7 - Wed, Nov 22: Sam Altman takes to Twitter, expressing enthusiasm about his return and the continued partnership with Microsoft. The prodigal CEO is back at the helm!

As the dust settles on this whirlwind week at OpenAI, we find ourselves amidst not just a story of corporate intrigue but a goldmine of career wisdom.

Each twist in the tale, each decision made, and each reaction observed, holds a lesson for those keen to navigate the complex and often unpredictable world of tech careers.

Let's delve into the top 5 career lessons that emerge from this saga, lessons that are as applicable to startups as they are to established giants and as relevant to entry-level professionals as they are to CEOs.

LESSON 1
ALIGNMENT: THE INVISIBLE GLUE OF SUCCESS.

In my journey through the startup world, I once overlooked the subtle yet crucial signs of misalignment.

During interviews at my last startup, I encountered many visions for the company’s future: from dominating physical spaces in building lobbies, becoming the modern-day Amazon, building an all-in-one building amenity platform, and even aspirations to evolve into a contemporary 'milkman' service.

These divergent views, initially dismissed as typical startup flux, later became the Achilles' heel of the company, leading to its operational shutdown and strategic pivot just eighteen months down the line.

The OpenAI saga, too, starkly highlights this issue. At its core was a fundamental discord in vision between the profit-driven mindset of Sam Altman and the non-profit ethos of the board. This clash of ideologies forged a chasm too wide to bridge, culminating in the dramatic events we witnessed.

Choosing Wisely: The Startup Selection Crucible

When you’re on the brink of joining a startup, where your investment isn’t just your time and energy but also your beliefs and aspirations, ensuring alignment in the leadership's vision is paramount.

The stakes are high: misaligned leadership can not only cost you your job but also potentially millions in stock options.

In the OpenAI narrative, had Sam permanently exited and taken 95% of the workforce with him, the financial repercussions for the employees – loss of millions of dollars of stock options – would have been catastrophic.

Talk about a life-changing lack of alignment!

This underscores the gravity of alignment in a company's leadership.

LESSON 2
BE GRACIOUS EVEN IN DEFEAT.

A Personal Anecdote: Learning from Life's Small Moments

Last Christmas, I gifted my 5-year-old son a Nintendo Switch, a decision that unexpectedly became a teaching moment. During a gaming session with a neighborhood kid, I noticed the kid abruptly come up our basement stairs, throw on his jacket, and leave our house. He didn’t leave out of nowhere so, I called my son for an explanation.

“Why did he leave, James?”

“I lost at Mario Kart, Dad.”

“And why did that make him leave?”

“Well, I kept turning off the game whenever he was winning.”

This incident, though kind of funny and very annoying, was an amazing opportunity to instill an essential life skill: graciousness in defeat.

It's a lesson that Sam Altman, amidst his professional upheaval, demonstrated with finesse.

Sam Altman's Lesson in Professional Graciousness

When Sam was abruptly ousted from OpenAI, he didn't erupt in public outrage.

Instead, he chose the path of gratitude and optimism.

His communications focused on the positive aspects of his tenure, the remarkable team he worked with, and an upbeat outlook on the future.

Why Graciousness Matters in the Professional Arena

In the volatile world of startups, maintaining a gracious demeanor in the face of layoffs, terminations, or company failure is not just admirable – it's strategic.

The startup ecosystem is tightly interconnected; a negative word about a former investor or employer can ricochet, hampering future fundraising efforts or job prospects.

The high road, marked by appreciation and professionalism, is invariably the better path.

LESSON 3
WINNING ISN’T EVERYTHING… BUT IT HELPS.

Beyond Logo Chasing: A Matter of Strategic Choice

Logo chasing, the practice of picking companies for their prestige rather than their substance, is a path I generally advise against.

It might adorn your resume with impressive names like Apple or Google, but often at the expense of a truly enriching (and interesting) career journey.

For me, joining Uber wasn't about adding a well-known logo to my resume.

When I joined, most people I spoke to thought I drove a taxi for a living.

It was about being part of a company revolutionizing urban mobility.

A true disruptor, leaving its traditional taxi counterparts in the dust.

When Being with the Best Pays Off

However, there's an undeniable truth in the tech world: aligning with industry leaders can be a game-changer.

This was vividly illustrated in the aftermath of the OpenAI coup.

As soon as the employee resignation letter hit the news, it triggered a frenzy among other tech leaders eager to lure top talent from OpenAI.

Salesforce's CEO Marc Benioff wasn’t just riding the wave for publicity (although I had never heard of Einstein before his tweet).

His post and following direct messages to OpenAI employees were strategic moves to acquire top-tier talent.

This drama might have gone unnoticed in a less prominent company, and its employees wouldn't have witnessed the same level of interest from industry giants.

The ease at which these employees could have landed other jobs underscores a crucial lesson: being part of a frontrunner in your field can open doors that might otherwise remain closed and change your career forever.

LESSON 4
READY TO QUIT YOUR JOB FOR YOUR BOSS?

Choosing a Boss, Not Just a Job

In the quest to build a billion or trillion-dollar company, one element is indisputable.

It demands an extraordinary amount of work.

But what makes this Herculean task manageable and dare I say… enjoyable?

Inspirational leadership.

It's the kind of leadership that not only drives the company's mission forward but also lights the passionate fire of commitment among the team members.

The power of such leadership can seem almost cult-like in its intensity.

Trust me, I fully drank the Kool-Aid at Uber and don’t regret a moment of it.

Employees in the most successful companies often express a deep-seated loyalty to their leaders.

They don't just follow instructions mechanically.

They are genuinely invested in the vision and motivated by the drive of their leaders.

The Decacorn Drive: Leadership That Inspires Life's Best Work

Speak to any early employee at a company that has soared to decacorn ($10B+) or centacorn ($100B+) status and they'll echo a similar sentiment.

The journey was arduous, but it was the most fulfilling period of their professional lives.

This level of success is unattainable without a leader who can inspire, motivate, and lead from the front.

The OpenAI coup is a testament to this principle.

The employees' allegiance was not just to the company's name or its brand; it was to Sam Altman as an individual.

His vision for AI and his leadership style were so compelling that employees were willing to risk their jobs, essentially holding the company at ransom to ensure his return.

And their bold move paid off.

The Choice Between Mediocrity and Fire

Consider this: we spend a significant portion of our lives at work.

Wouldn't you rather be in an environment where you feel inspired, on fire, and driven, rather than settling for a job that's merely 'fine'?

Employees in companies with inspiring leaders tend to outperform others because their efforts are fueled by genuine enthusiasm, not just obligation.

Evaluating Your Future Boss: A Critical Step in Your Job Search

People often leave managers, not companies.

Therefore, trust and confidence in both the company's leadership and your direct manager are crucial for your success and career progression.

LESSON 5
THE 3-DAY JOB SEARCH.

Networking: The Ultimate Career Accelerator

It took Sam Altman just three days to find a new job.

That’s 98% shorter than the average American job search span of five months.

So, what was Sam's secret?

It wasn't just his brilliance or leadership acumen.

It was his formidable network.

Sam's stint at Y-Combinator and his role in OpenAI enabled him to cultivate a network amongst some of Silicon Valley's brightest minds.

This network was his ace in the hole.

Without it, Sam's job search could have been drastically longer regardless of his skills and talents.

The 90/10 Rule of Networking in Job Search

This leads us to a vital strategy for startup job seekers.

Allocate 90% of your effort to networking and only 10% to submitting applications.

Networking isn't an innate talent held by only the anointed ones.

It's an acquired skill pivotal for steering your career.

A well-nurtured network of high-performing professionals can differentiate between a prolonged job hunt and a rapid, successful placement.

Master this, and you might never need to fill out a job application again.

OPEN ROLES
Who’s Hiring?

Neuralink

• What They Do: Neuralink is a company working on a special device that can be placed in the brain to connect it directly to computers. This technology is aimed at helping people who are paralyzed by allowing them to control computers or other devices with their thoughts. In the future, it might even be used to treat brain diseases and possibly increase people's thinking abilities. The main goal of Neuralink is to create new ways to help people with severe brain conditions.

• Number of Employees: 445

• Total Raised To Date: $687.14M

• Last Known Valuation: $3.52B

• Last Raise Date: November 22, 2023

• Recent Raise: $323.24M

• Series: D

• Pitchbook Success Probability: 98% Success

• Open Roles? Yes

• Hiring Departments:

  • Internships

  • Research Services

  • Quality Systems

  • Surgery & Robotics

  • Brain Interfaces

  • Temp Workers

  • Clinical

  • Operations

  • Core Software

Songtradr

• What They Do: Songtradr is revolutionizing the way artists, brands, and creators collaborate in the music industry, offering a unique licensing marketplace that simplifies the connection between music and media. It provides artists and songwriters with advanced tools and services, empowering their careers and ensuring their music finds the right audience.

• Number of Employees: 369

• Total Raised To Date: $210.07M

• Last Known Valuation: $879.00M

• Last Raise Date: November 21, 2023

• Recent Raise: $109.00M

• Series: E

• Pitchbook Success Probability: 97% Success

• Open Roles? Yes

• Hiring Departments:

  • Finance & Control

  • Marketing

  • Operations

BioCatch

• What They Do: BioCatch is revolutionizing cybersecurity with its behavioral biometric technology, adept at detecting a range of cyber threats without compromising user privacy. Specializing in thwarting advanced social engineering scams, the company helps global banks combat fraud and streamline digital interactions. Its innovative approach is crucial in protecting clients from the ever-evolving challenges of online fraud and cybercrime.

• Number of Employees: 280

• Total Raised To Date: $302.09M

• Last Known Valuation: $1.07B 🦄

• Last Raise Date: November 20, 2023

• Recent Raise: $70.00M

• Series: C

• Pitchbook Success Probability: 98% Success

• Open Roles? Yes

• Hiring Departments:

  • Solutions

  • Marketing

  • IT

So there you have it, the five key career lessons that we can pull from one of the most tumultuous events in tech and startup history.

1. Alignment is Crucial: Ensure that your company's leadership shares a unified vision. Misalignment can spell disaster.

2. Graciousness in Adversity: Maintain a poised and positive demeanor in professional setbacks. Your reputation and future opportunities depend on it.

3. The Power of the Leaderboard: Aligning with industry frontrunners can open doors that remain shut to others. It's not just about the brand, it's about being where the best are.

4. Inspirational Leadership Matters: Seek out roles where leaders inspire and motivate, transforming work from an obligation to a passion.

5. Networking as a Career Catalyst: Invest in building a robust professional network. It's not merely about who you know, but about nurturing meaningful connections that can pivot your career trajectory.

In the competitive world of startup job searching, the right strategies and insights can transform challenges into stepping stones for succcess.

Let’s become career champions together 🏆

Kyle