OpenAI has named Instacart head Fidji Simo as its new CEO of Applications.
Sam Altman, the artificial intelligence (AI) startup’s chief executive, announced the appointment Wednesday (May 7). In a statement shared on the OpenAI blog, Altman wrote that the move is in response to the firm’s evolving role, becoming a “global product company,” an infrastructure company, and a non-profit.
“Each of these is a massive effort that could be its own large company,” he said. “We’re in a privileged position to be scaling at a pace that lets us do them all simultaneously, and bringing on exceptional leaders is a key part of doing that well.”
According to Altman, Simo will focus on helping OpenAI’s “traditional” functions scale as it moves into a new phase of growth.
“Applications brings together a group of existing business and operational teams responsible for how our research reaches and benefits the world, and Fidji is uniquely qualified to lead this group,” he said.
Altman will remain as the company’s overall CEO. Simo is expected to transition from her post at Instacart in the coming months, joining OpenAI later in the year.
“Joining OpenAI at this critical moment is an incredible privilege and responsibility,” Simo said. “This organization has the potential of accelerating human potential at a pace never seen before and I am deeply committed to shaping these applications toward the public good.”
The news comes days after OpenAI revealed it was scaling back its plans to shift from a non-profit model to a for-profit entity.
The company’s new corporate plan will allow its non-profit arm to retain control of the board while becoming the largest shareholder in a new public-benefit corporation. Board chair Bret Taylor said directors reversed course after “hearing from civic leaders” and regulators, saying the arrangement was “extremely close” to the existing structure.
Altman described the compromise as “well enough for investors that they’re happy to continue to fund us.”
As PYMNTS noted earlier this week, the company is asking those investors for a significant amount of funding. In March, OpenAI told backers it aims to raise $40 billion in a funding round led by SoftBank that would value the company at approximately $300 billion.
“Maintaining nonprofit control could complicate that effort but may help defuse a lawsuit from co-founder Elon Musk, who accuses OpenAI of straying from its public-interest mandate,” PYMNTS wrote.
