The Memo that shook OpenAI

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⚖️ Inside the Brockman Memo and OpenAI’s Leadership Fallout

OpenAI co-founder Ilya Sutskever has disclosed explosive details in a 10-hour court deposition tied to Elon Musk’s lawsuit against OpenAI. The revelations include a 52-page document chronicling management issues, a “Brockman Memo,” and discussions of a potential merger with Anthropic during the 2023 leadership crisis that temporarily ousted Sam Altman.

The Decode:

1️⃣ The Year-Long Plan to Remove Altman - Sutskever revealed that the board had considered removing Altman for over a year, citing “patterns of dishonesty and manipulation.” His 52-page memo outlined concerns about Altman’s leadership style, governance lapses, and alleged power plays within the organization’s upper ranks.

2️⃣ The Brockman Memo and Murati’s Evidence - The deposition referenced a separate memo authored by Greg Brockman that examined internal tensions, including claims that Altman “pitted” then-CTO Mira Murati against Daniela Amodei, the sister of Anthropic CEO Dario Amodei. Murati reportedly provided most of the supporting evidence for Sutskever’s report.

3️⃣ Anthropic’s Role in the Crisis - During the turmoil, Anthropic allegedly expressed interest in a merger with OpenAI, with Dario Amodei proposed to lead the combined entity. The idea, though short-lived, highlights how close the AI industry came to a radical restructuring of its power balance.

The disclosures paint a clearer picture of the internal chaos that nearly reshaped the AI landscape. What began as a boardroom dispute evolved into a defining moment for the future of ethical AI governance, one where the same figures now lead competing labs, still bound by the fallout of that pivotal 2023 crisis.

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📈 Gen AI Crosses from Experimentation to Enterprise Infrastructure

Wharton’s latest Accountable Acceleration study shows generative AI has officially moved from experimentation to enterprise infrastructure. Surveying 800 U.S. executives, the report highlights surging adoption, measurable ROI, and growing executive oversight.

The Decode:

1️⃣ Gen AI Adoption Goes Mainstream - 82% of enterprise leaders now use Gen AI weekly, up from 37% in 2023. Nearly half engage daily, embedding tools like ChatGPT, Copilot, and Gemini into core workflows. AI is now standard in analytics, content creation, and operational efficiency.

2️⃣ ROI Tracking Becomes Standard - Three-quarters of enterprises now measure AI-driven ROI, focusing on productivity and profitability. 72% already report positive returns from early investments. This signals a mature phase where pilots are replaced by performance metrics.

3️⃣ Budgets Surge for Long-Term Payoff - 88% of leaders expect to raise Gen AI spending this year, with 62% forecasting double-digit growth. Most expect payoffs within three years, reallocating legacy budgets toward AI automation and R&D. Investment confidence is stronger than ever.

4️⃣ Skill Gaps Threaten AI Progress - 43% of leaders warn of employee “skill atrophy” as AI evolves faster than training. Nearly half struggle to recruit Gen AI talent or manage change effectively. Sustained ROI now depends on upskilling and organizational readiness.

The Wharton study captures Gen AI’s leap from hype to habit across the enterprise. With usage, ROI, and investment all rising, the new differentiator is human capability, companies that train faster and integrate deeper will own the next wave of AI advantage.

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🎬 OpenAI’s Sora now offers paid video generation credits, letting users buy extra allowances beyond daily limits. Ten additional generations cost $4, as OpenAI moves to monetize Sora and support its growing creator ecosystem.

💰 Sam Altman pushes back on OpenAI revenue doubts, saying the company makes “well more than $13B” annually and is growing steeply. He dismissed speculation about financial strain and denied IPO plans for 2026.

🧠 Microsoft AI CEO Mustafa Suleyman says AI models aren’t conscious, calling consciousness research “a distraction” and emphasizing that teams should focus on building useful, reliable systems instead of chasing artificial awareness.

🤳AI Nugget of the Day

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