OpenAI, the company behind blockbuster generative AI chatbot ChatGPT has fired its CEO Sam Altman, a statement from the company said. The statement indicates that Altman was under a formal review and that he had hidden information from the company board.

“Altman’s departure follows a deliberative review process by the board, which concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities,” according to OpenAI.

“The board no longer has confidence in his ability to continue leading OpenAI,” the statement added.

The statement said the board was “grateful for Sam’s many contributions to the founding and growth of OpenAI. At the same time, we believe new leadership is necessary as we move forward.”

Following Altman’s sacking, OpenAI’s Chief Technology Officer Mira Murati will be the interim CEO while the company conducts a formal search for a new, permanent CEO.

ChatGPT is credited with kicking off the generative AI craze in November last year and even altering the tech scenario by making it reevaluate its goals. The chatbot remains hugely popular despite subsequent competition for other such generative AI tools. OpenAI is backed by Microsoft which has poured billions of dollars into the company.

There was no immediate reaction from Altman or Microsoft. As the news of Altman’s sacking broke, Microsoft shares tanked by 1.91 per cent and were trading at USD 368.93 

OpenAI’s board of directors has eminent names like Quora CEO Adam D’Angelo, OpenAI chied scientists Ilya Sutskever, tech entrepreneur Tasha McCauley and Georgetown Center for Security and Emerging Technology’s Helen Toner.

Altman in past, has interacted with heads of state about AI and has also testified before US Congress.

Earlier this month, Altman was involved in a major conference of developers during which he announced new sets of products which generated positive response in Silicon Valley.

Artificial intelligence is not a new concept, but ChatGPT made it a household name across the world. This generated enthusiasm for the technology as well as fears of its misuse in weapons and more.

“(I have) lots of empathy for why anyone would feel, however they feel, about this,” Altman told AFP during the APEC summit in San Francisco.