Episode 2487: Keach Hagey on Sam Altman's Superpower

Keach Hagey’s upcoming new biography of OpenAI's Sam Altman is entitled The Optimist. But it could alternatively be called The Salesman. The Wall Street Journal reporter describes Altman as an exceptional salesman whose superpower is convincing (ie: selling) others of his vision. This was as true, she notes, in Altman’s founding of OpenAI with Elon Musk, their eventual split, and the company's successful pivot to language models. Hagey details the dramatic firing and rehiring of Altman in 2023, attributing it to tensions between AI safety advocates and commercial interests. She reveals Altman's personal ownership of OpenAI's startup fund despite public claims to the contrary, and discusses his ongoing challenge of fixing the company's seemingly irresolvable nonprofit/for-profit structure. 5 Key Takeaways * Sam Altman's greatest skill is his persuasive ability - he can "sell ice to people in northern climates" and convince investors and talent to join his vision, which was crucial for OpenAI's success.* OpenAI was founded to counter AI risks but ironically accelerated AI development - starting an "arms race" after ChatGPT's release despite their charter explicitly stating they wanted to avoid such a race.* The 2023 firing of Altman involved tensions between the "effective altruism" safety-focused faction and Altman's more commercially-oriented approach, with the board believing they saw "a pattern of deliberate deception."* Altman personally owned OpenAI's startup fund despite publicly claiming he had no equity in OpenAI, which was a significant factor in the board's distrust leading to his firing.* Despite regaining his position, Altman still faces challenges converting OpenAI's unusual structure into a more traditional for-profit entity to secure investment, with negotiations proving difficult after the leadership crisis.Keach Hagey is a reporter at The Wall Street Journal, where she focuses on the intersection of media and technology. She was part of the team that broke the Facebook Files, a series that won a George Polk Award for Business Reporting, a Gerald Loeb Award for Beat Reporting and a Deadline Award for public service. Her investigation into the inner workings of Google’s advertising-technology business won recognition from the Society for Advancing Business Editing and Writing (Sabew). Previously, she covered the television industry for the Journal, reporting on large media companies such as 21st Century Fox, Time Warner and Viacom. She led a team that won a Sabew award for coverage of the power struggle inside Viacom. She is the author of The King of Content: Sumner Redstone’s Battle for Viacom, CBS and Everlasting Control of His Media Empire, published by HarperCollins, and The Optimist: Sam Altman, OpenAI and the Race to Invent the Future, published by W.W. Norton & Company. Before joining the Journal, Keach covered media for Politico, The National in Abu Dhabi, CBS News and the Village Voice. She has a bachelor’s and a master’s in English literature from Stanford University. She lives in Irvington, N.Y., with her husband, three daughters and dog.Named as one of the "100 most connected men" by GQ magazine, Andrew Keen is amongst the world's best known broadcasters and commentators. In addition to presenting the daily KEEN ON show, he is the host of the long-running How To Fix Democracy interview series. He is also the author of four prescient books about digital technology: CULT OF THE AMATEUR, DIGITAL VERTIGO, THE INTERNET IS NOT THE ANSWER and HOW TO FIX THE FUTURE. Andrew lives in San Francisco, is married to Cassandra Knight, Google's VP of Litigation & Discovery, and has two grown children. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit keenon.substack.com/subscribe