Paul Graham Clears Air On Sam Altman's Departure From Y Combinator After Ex-OpenAI Board Member Says It Was 'Hushed Up'

Paul Graham, co-founder of Y Combinator, has taken to X, formerly Twitter, to clear the air about Sam Altman’s departure from the startup accelerator.

What Happened: Graham refuted claims that Altman was fired from Y Combinator, in a post on X.

Graham explained that Altman had been managing both Y Combinator and OpenAI, but when OpenAI decided to establish a for-profit subsidiary with Altman as CEO, it was mutually agreed that Altman should focus on one role.

Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.

“We (specifically Jessica) told him that if he was going to work full-time on OpenAI, we should find someone else to run YC, and he agreed."

Altman was “asked to leave” by Y Combinator due to prioritizing his personal goals over that of the company, reported The Washington Post in November.

See Also: Elon Musk Takes A Dig At OpenAI’s New Board, Agrees It Has ‘No Real Power’ After Former Member Calls Out Sam Altman

Why It Matters: The clarification comes in the wake of allegations made by a former OpenAI board member, Helen Toner, who pulled up Altman's history at two of his former employers, startup accelerator Y Combinator and a startup named Loopt. She said this was due to "deceptive and chaotic behavior."

“It’s come out that he was actually fired from his previous job at Y Combinator, which was hushed up at the time,” Toner said.

Elon Musk, co-founder of OpenAI as well as the founder of xAI, also recently criticized the organization’s new board, agreeing with the former board member’s remarks that it lacked "real power."

Furthermore, Toner also revealed that the OpenAI board was not informed about the launch of ChatGPT, adding to the controversy surrounding Altman.

Check out more of Benzinga's Consumer Tech coverage by following this link.

Read Next: OpenAI Former ‘Superalignment' Lead Joins Jeff Bezos-Backed Rival Anthropic Days After Quitting Sam Altman's Team

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photos courtesy: Flickr and Shutterstock

Market News and Data brought to you by Benzinga APIs
Posted In: NewsTechartificial intelligencebenzinga neuroConsumer TechOpenAiPaul GrahamPeople In TechSam AltmanY Combinator
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!