The Rise of OpenAI Revealed: Power Players, Ultraman Accumulates Huge Influence Through Connections

Source: Tencent Technology

Compiled by: Jin Lu

The growth journey of Sam Altman has always been marked by his understanding of the importance of being in the right place, seizing the right opportunities, and connecting with the right people. Understanding Altman's rise is crucial because by grasping his identity and beliefs, we may better answer an urgent question: Should we trust this person to oversee the development of this technology?

Starting with the founding of location service Loopt at the age of 19, Altman has demonstrated a strong pursuit of power. With his unique personal charm and unwavering determination, he has garnered support from numerous tech leaders, including Paul Graham, Peter Thiel, and Elon Musk. His ability to handle issues and build relationships has been widely praised, but it has also sparked some doubts and criticisms. Despite his commitment to benefiting humanity through OpenAI's vision, his management style has often become a focal point of controversy.

Although a college dropout who often appears in signature work shorts or polo shirts, Altman has consistently managed to attract the attention of investors and achieve his goals. He once candidly stated on his personal blog, "Surprisingly, you can make the world bend to your will to some extent, while most people haven't even tried."

Altman's Unique Skill: Mastering the Use of Power

On a Wednesday in November 2023, I (noted tech journalist Ellen Huet) found myself in a dimly lit restaurant in San Francisco. The place was bustling, hosting a lively party after an artificial intelligence conference. People were chatting in small groups, and waiters were weaving through the crowd with exquisite hors d'oeuvres. As I took a bite of a mushroom doughnut, a faint whisper reached my ear: "Sam Altman is here."

I struggled to spot him in the dim light. I had interacted with Altman several times; he had been in the startup scene for many years and was always friendly to reporters. Over time, he had become one of the most influential figures in Silicon Valley. As the CEO of OpenAI, he catapulted the company into the spotlight at the end of 2022 with the release of ChatGPT, raising its valuation to $86 billion and making it one of the highest-valued startups globally. In the past few months, Altman had frequently appeared in major news headlines, becoming the focus of mainstream media coverage. He was dubbed the "King of ChatGPT," "the modern Oppenheimer," or "AI overlord," seemingly becoming the spokesperson for the future of artificial intelligence, meeting with bigwigs around the world.

In the crowd, I caught sight of him standing in a corner of the restaurant, already surrounded by several guests, and I decided to say hello. He was dressed in a sharp suit and tie, looking more formal than I remembered, but seemed slightly shorter than I recalled. As we shook hands, he smiled and glanced at my conference badge, saying, "Nice to meet you." His charisma and warmth took me by surprise. It seemed he remembered me and already knew about my ongoing work. So, I took the opportunity to request an interview with him. He replied, "Of course, that sounds like a great idea."

A few guests were waiting to speak with him, so I politely stepped back. About ten minutes later, he also left the party. The next day, Altman continued his tour, actively participating in major conferences as an AI politician. At a highly publicized international conference attended by world leaders, he delivered a speech on artificial intelligence: "I firmly believe that this (AI) will be one of the most transformative and beneficial technologies in human history. It is undoubtedly the most significant technological revolution we have seen to date. I am passionate about it and cannot imagine a more exciting endeavor. It is a tremendous honor and pleasure for me to be involved." Altman is deeply convinced of the impending transformation and understands the pivotal role he plays in it.

However, just under 48 hours after I witnessed Altman at the party, and 24 hours after his important speech, shocking news broke—he was fired by the OpenAI board. This news took everyone by surprise, even Microsoft, OpenAI's largest backer. According to the OpenAI board, they found that Altman "was not always forthcoming" in his communications with them during their review. This news hit like a bombshell, becoming one of the most sensational tech stories of 2023, catching everyone off guard. When the news broke on Friday afternoon, my colleagues and I immediately realized that this weekend would be anything but calm. In the following days, the news swept through like a hurricane. The OpenAI board hinted at Altman's dishonesty, subsequently announced the appointment of a new CEO, and ultimately issued a public apology expressing regret over the firing decision.

Some vowed loyalty, employees rose in rebellion, while another undercurrent seemed to suggest that Altman might return to OpenAI. He was actively seeking support from employees and Microsoft, making it feel like he might take the helm again. Just five days after his firing, Altman miraculously returned as CEO, a dramatic turnaround that left many astonished. However, for those who knew Altman, this did not seem surprising.

Altman's mentor, renowned investor Paul Graham, once revealed to reporters that Altman is exceptionally skilled at wielding power, which has almost become his unique trademark. In Silicon Valley, we often talk about tech giants who are either programming prodigies or have an almost obsessive pursuit of product details and design. But Altman is different; his most powerful and striking ability is his knack for navigating power dynamics, a skill that could profoundly impact each of us.

In the summer of 2023, about five months before his firing, a tech journalist asked Altman, "You currently hold immeasurable power; why should we trust you?" He calmly replied, "You shouldn't trust me. If AI technology is indeed as powerful as expected, it will change everything; you shouldn't trust a company, let alone any individual." If he truly believes this, then why strive to return to OpenAI? Why seek to regain control, as if convinced he is the only choice to lead the company forward in its rapid advancement of AI?

The Outstanding Student in the Teacher's Eyes, the Overbearing Brother in the Sister's Eyes

Altman's thirst for power was evident from a young age. He spent a carefree childhood in St. Louis, where his mother was a dermatologist and his father a real estate developer. Altman is the eldest of four siblings.

He attended a prestigious private high school. One particularly notable anecdote about him is that when some students attempted to resist a rally on sexual orientation, young Altman boldly stood before the entire school and declared himself gay. This was undoubtedly an extremely brave and progressive act among teenagers in the early 21st century. As we know, Altman is intelligent and unique; he has always stood out. He was an excellent student, a talented writer, and an exceptional person.

Andy Abbott, one of Altman's English teachers and now the principal of his high school, recalls that even in a highly competitive environment, Altman was a standout. Abbott remembers him as a natural leader, full of charm and curiosity. He was not a traditional student; he not only served as the editor of the yearbook and represented the school in Model United Nations but also designed the school's website, which was particularly rare at a time when outsourcing website design was not yet common. Even more surprisingly, he participated in water polo and excelled at it.

Abbott said, "I clearly remember that Altman's confidence stemmed from his immense talent. He seemed to be the brightest star in the room, not only exceptionally intelligent but also incredibly charismatic. I had hoped he wouldn't enter the tech industry because he was so creative and had such a wonderful writing style; I dreamed he would become a writer or a similar artist. After all, no one expected OpenAI to achieve such tremendous success, but everyone knew this guy surpassed us ordinary folks in most fields."

This reflects a key characteristic of Altman's career: he excels at leaving a deep impression, especially on those who can positively influence him—elders, powerful figures, and those who might help him. Those familiar with him reveal that he possesses an extraordinary ability to perceive the distribution of power and charm those who hold it. Thus, even as a teenager, his demeanor resembled that of a mature, confident individual with more agency. Adults appreciated this quality in him, and he displayed the same trait when interacting with his three younger siblings.

According to Altman's brother, they often played a board game called "Warriors" as children, and Altman was always the winner. He prided himself on being the leader and confidently declared, "I have to win; I control everything." His brother recounted this story with a hint of humor, but their sister Annie, the only girl in the family, had a different perspective. She felt a disconnect from Altman and the rest of the family, but childhood memories left her with a strong impression of his controlling nature. For her, this was not a joke but a display of dominance.

Annie stated, "From my personal perspective, because of the nine-year age gap, he often tried to play the role of a third parent, like an older brother controlling everything in the family. For example, even though we are Jewish, we used to buy a Christmas tree to celebrate until Altman strongly opposed it. My memories of Christmas trees were almost erased because when he was 13, he decided that as a Jewish family, we should stop celebrating Christmas." When their father passed away in 2018, Annie recalled that Altman allocated speaking time for each of the younger siblings at the funeral. However, a female spokesperson from OpenAI revealed that Altman's recollection of these events differed slightly, but she declined to provide further details.

Dropping Out to Start a Business and Building a Network

When Altman graduated from high school, he embarked on a path typical for the tech industry: studying computer science at Stanford University, founding a startup, and dropping out to focus on entrepreneurship. However, he made a crucial decision to apply to Y Combinator. This startup accelerator is essentially a boot camp for startups, where entrepreneurs submit applications and learn how to build a company in three months. During this time, entrepreneurs need to pitch to investors and try to raise venture capital. Altman was actually one of the first founders of YC. It was 2005, and YC was virtually unknown, just a group of young people gathering in Cambridge, Massachusetts, writing code, but it would eventually become an extremely powerful network, now essentially the top elite program for leading startups, making it difficult to get in.

At 19, Altman joined YC and immediately made a deep impression on YC founder Paul Graham. Graham later wrote, "In about three minutes, I remember thinking: Bill Gates must have been like this at 19." The startup Altman founded at that time was called Loopt. When people were first excited about GPS on mobile phones, it connected people with their friends and local businesses using location data, somewhat like a mix of Yelp and Foursquare. Altman introduced it at a developer conference: "Loopt's goal is to connect people on the move; after all, that's the main reason you have a phone. We show you where people are, what they are doing, and what cool places are around."

Altman started building this company in 2005, before the iPhone existed, so Loopt tried to make it work for flip phones, which was somewhat challenging. In the early days, Altman's company found itself in a desperate situation; they really needed to strike a deal with mobile carriers. They learned that Boost Mobile, a subsidiary of Sprint, was looking to add location features and needed a partner, but they were about to sign with another company. So, Altman flew to Boost's headquarters in Southern California. He showed up outside the office of Boost executive Will, requesting ten minutes of his time. Will recalled, "I remember when I got the call from Altman; he explained who he was and what Loopt was. Someone from Sprint told him to contact us."

He added, "At that time, we were about to sign with another startup that was bigger than Loopt. Altman asked to come in that day, which was very unusual, but given the timing, we were at the last minute, about to sign the contract, and he had come highly recommended by our parent company, Sprint, so it was at least worth having a meeting. Altman and two other members of Loopt came into the office, and we sat in the conference room, sharing what we wanted to do. Altman began to present Loopt; I remember he was 19, probably wearing casual shorts, sitting cross-legged in the chair, taking control of the situation." Altman ultimately convinced Will, leading Boost Mobile to change its original partnership plan at the last minute and choose the previously overlooked Loopt.

Will is still impressed by Altman. He said, "Visually, he seemed very young, but if you closed your eyes and just listened to his words, his deep understanding of the project, excellent communication skills, and confident command of the situation were among the best I've seen in the tech industry over the years; it was truly remarkable. What was striking was not just his appearance but also his extraordinary calmness and control." Altman's persistence paid off; he understood the importance of the deal and took action. Later, when Altman discussed this matter, he said he learned a valuable lesson: to persistently pursue goals. It was this persistence that led him to successfully sign the partnership agreement for Loopt.

YC peers were surprised by Altman's achievements, as Loopt's business model was still unstable, and the product did not leave a strong impression. However, Altman's unique advantages began to emerge; he was an incredible negotiator. YC founders were impressed by Altman's talents: "He left a deep impression; he somehow persuaded the phone company to provide services for his startup, even though at that time his company did not have a mature product. I don't know how he did it, but Altman's most striking quality at that time was his ambition. Most of us had that ambition, but he was better at closing deals." In the following years, Loopt gradually grew, and Altman presented the product at the Apple Developer Conference in 2008.

I have heard and read many interviews with Altman; he always uses words like "super" and "excited," sometimes "super excited." This enthusiasm and optimistic attitude are impressive. He describes things as so easy, important, and thrilling. However, regarding Loopt's later development, he did not feel "super excited." Years later, Loopt gradually faded from view, and Altman sold the company for a modest sum. Reports suggest he walked away with $5 million. For most people, this might be a satisfactory outcome, but from Silicon Valley's perspective, Loopt was seen as a failure to some extent.

But that didn't matter because by then, Altman had already won the favor of the investors. One of them was billionaire, investor, and PayPal co-founder Peter Thiel. Thiel is one of the most influential gay figures in Silicon Valley, which established a special bond between him and Altman. When Altman left Loopt, Thiel provided him with a substantial amount of funding for investments. Their relationship was very close, and Altman's peers noticed this, as Thiel was known for his pessimism and nihilism, while Altman presented a sincere and optimistic public image.

At the same time, Altman's relationship with YC's Paul Graham deepened, bringing tangible benefits to Altman. When Graham had the opportunity to invest in the startup payment company Stripe, he invited Altman to join. Altman later stated that from a certain perspective, this was his most successful angel investment to date, and he attributed this opportunity entirely to the personal network he had built.

With Money, Connections, and Influence, Becoming the "Conductor"

Graham is widely praised for writing a series of insightful startup articles that encapsulate his unique insights into entrepreneurship. He has repeatedly expressed admiration for Altman and advised young entrepreneurs to learn from him. One particular comment from Graham about Altman stands out: "Even if you were to drop him onto an island full of cannibals, five years later, he would undoubtedly be the king of the island." At first glance, I took this as a high compliment for Altman, but upon reflection, it may carry a deeper meaning.

By 2012, YC had risen to become a highly influential investment institution, moving its headquarters from Cambridge to Silicon Valley, becoming the cradle of many successful internet companies, including industry leaders like Airbnb, Dropbox, and Stripe. During this period, Altman seemed to begin emulating Graham's style, gradually transforming into a mentor in the startup field. He guided young founders at YC, much like Graham, and began writing those mysterious and often perplexing entrepreneurial advice pieces, such as "The most successful founders are not just focused on building companies but are dedicated to creating a near-religious belief," and "A little-known secret is that you can shape the world according to your will, but surprisingly, many people have never even tried."

In a blog post titled "How to Succeed," Altman shared with founders: "You should have almost excessive confidence; the most successful people I know have reached a level of delusion." For those familiar with Altman, this is not surprising. One friend told me that Altman always exudes absolute confidence, leaving the impression that he is 100% sure of himself, without the fear or uncertainty that most of us experience. Meanwhile, former Boost Mobile executive Will shared a similar view, noting that Altman is very confident but not arrogant, and this confidence stems from his ease and comfort in intellectual and interpersonal relationships.

Over the years, Graham helped carefully shape Altman's image, making him a demigod in the startup field, and in 2014, he decided to promote him comprehensively. Graham stepped down as YC president and appointed Altman as his successor, a decision that garnered widespread attention in Silicon Valley. At just 28 years old, Altman, with the support of Thiel and Graham, became the head of YC. Their close collaborative relationship provided him with resources such as money, connections, and influence. Essentially, they directly handed over a portion of power to Altman, which fueled his greater ambitions and aspirations, allowing him to maintain high expectations and pursuits even in the face of seemingly unwise projects like Loopt.

Graham explained that he chose Altman as YC's successor because "YC had grown into a large organization, and I am not good at managing such a large organization; Altman excels in this regard." At that time, there was no concrete evidence that Altman had the ability to manage a large organization, but since he took over YC, he not only scaled the company beyond previous limits but also provided funding support for more startups and successfully expanded overseas. Altman's leadership period at YC was undoubtedly an era of expansion.

Entrepreneur John Coogan observed that Altman possesses excellent cognitive flexibility and listens intently, a skill he considers almost extraordinary. Some even described him as the "listening Michael Jordan." Many people have described the intensity of his focus when listening; he will look directly into your eyes, and that intense attention can be somewhat unsettling. Later, as the head of YC, Altman may have resembled a behind-the-scenes orchestrator, leveraging the rich negotiation skills he accumulated during the Loopt era, combined with a larger network and influence, so that when problems arose, he could resolve them with just a phone call.

Coogan recalled, "In the early days of my entrepreneurial career, I went through an exceptionally tough negotiation. I sent Altman an email on a whim, and to my surprise, he called back immediately. Within five minutes, he completely resolved my dilemma. This became one of the best deals of my career and left a deep impression on me. I witnessed Altman solve a $100 million problem in a mere 15-minute call, which was truly astonishing. I believe Altman simply thinks about problems in a humanized way; he understands everyone's needs—this person wants X, that person wants Y—and then he thinks about how to cleverly connect the two."

Under Altman's leadership, YC continued to grow, but his ambitions extended far beyond that. After becoming president, he took on a series of special projects, one of which was fusion research, aimed at encouraging more people to start businesses in this field. He expanded YC's scope to include startups with technological uncertainties. Previously, YC had primarily focused on internet software. Additionally, he established a research department within YC and assigned researchers to explore various cutting-edge projects, such as universal basic income—fixed income regardless of whether individuals work.

Under Altman's push, YC conducted a study providing unconditional economic assistance to families in Oakland. This proactive approach is what Altman excels at; he often has an idea in his mind that something should exist, and then he gathers manpower and funds to encourage others to put it into practice. As he stated in his blog, he is like a conductor of a symphony orchestra; he does not play an instrument himself but can lead the entire orchestra to produce harmonious melodies.

Musk's Concern for AI: Envy and Jealousy Towards His Super-Rich Friends?

By 2015, Altman found another opportunity to showcase his talents. He identified a crucial topic—artificial intelligence—and prepared to gather relevant talents and resources through a dinner to advance the field. This dinner was destined to change everything. A legend circulated in Silicon Valley that in 2015, Elon Musk was deeply concerned about the state of artificial intelligence and frequently expressed his worries.

At that time, Google dominated the AI field, with ample funding and numerous top researchers. Google Brain and its acquired DeepMind lab were conducting exciting AI research, aiming to create smoother and self-learning AI systems. Google's early lead made Musk uneasy; he feared that AI could become too powerful, especially when AI entities began to self-improve. This concern left Musk doubtful about those responsible for this field.

Musk once admitted that he had a deep friendship with Larry Page, often having late-night discussions at Page's home, where he repeatedly emphasized the potential dangers of AI, but Page seemed indifferent. When Musk mentioned the end of this friendship, his tone seemed light, but this anecdote highlighted his wisdom and foresight. At that time, Google, especially after acquiring DeepMind, had gathered two-thirds of the world's AI talent, with vast computational resources and funding; however, those in control of it seemed unconcerned about AI safety issues, which undoubtedly posed a serious risk.

Musk elaborated, "The final rift occurred when Page called me a racist simply because I leaned more towards human consciousness than machine consciousness. I think, to some extent, I indeed do." At that time, many experts scoffed at the idea that AI posed a threat to human existence, considering it absurd, as AI struggled to distinguish between pictures of chihuahuas and blueberry muffins. However, for Musk, this was an imminent threat.

In a meeting, during a conversation with biographer Walter Isaacson, Musk's tone was serious, even panicked. He emphasized, "I think most people do not realize how fast machine intelligence is developing; it far exceeds people's imagination, and even in Silicon Valley, few truly understand this. If there exists a superintelligence, especially one capable of recursive self-improvement, and its utility function is harmful to humanity, the consequences would be unimaginable. Imagine it might conclude that the best solution to eliminate spam is to eradicate humanity; why should we keep the source of that spam?"

However, the audience at that time scoffed at Musk's words, considering his concerns too absurd. Musk felt he had to take action to weaken Google's dominance in the AI field, but there might have been deeper motivations behind this. Tech journalist Ashley Vance mentioned in Musk's biography, "The Musk of 2013 was different from the Musk we see today. At that time, he was doing well, with Tesla and SpaceX both gaining momentum, but his net worth was perhaps only in the billions, far from being the richest person in the world."

Musk's circle of friends at that time included top billionaires, including Google co-founders Page and Sergey Brin. Tech journalist Ashley Vance revealed while writing Musk's biography, "I interviewed Musk multiple times, and as I delved into his inner world, I strongly felt he was looking at his friends around him. They lived privileged lives, with vast software empires and growing AI empires. I firmly believe Musk's deep concern for AI partly stemmed from envy, even jealousy, towards his friends' success. He witnessed the brilliant achievements of Google and his friends while he seemed to have yet to reach such heights, though he never publicly admitted this."

Idealism vs. Reality: A Power Struggle Unfolds

Thus, artificial intelligence has always been a focal point for Musk. In 2015, he attended a dinner held at the Rosewood Hotel, a luxurious venue located on Sand Hill Road in Menlo Park, the heart of Silicon Valley, adjacent to the largest venture capital firms in the area. About ten prominent figures gathered at the dinner, among whom four were particularly important—Musk, Altman, Ilya Sutskever, and Greg Brockman. Sutskever was a top AI researcher at Google, while Brockman was a key figure at Stripe, having transformed a five-person team into a multi-billion-dollar enterprise.

During the lively discussions at the dinner, they delved into the threats posed by the potential misuse of artificial intelligence and the catastrophic consequences it could entail. They also seriously analyzed the conditions necessary to establish a project that could compete with Google. They believed they possessed all the elements for success: Sutskever's AI expertise, Brockman's operational experience, Musk's financial backing, and Altman's coordination skills. At that dinner, Musk solemnly pledged to invest $1 billion in the project and proposed naming it OpenAI.

Their initial vision was for OpenAI to serve as a research lab dedicated to openly sharing its findings rather than keeping them secret for profit. It would operate as a non-profit organization, focusing on developing safe artificial intelligence that benefits humanity. Although this concept sounded beautiful in theory, the principles of non-profit and open-source soon became complicated in reality, leading to a power struggle among OpenAI's co-founders.

After OpenAI was established, Altman's interpersonal relationships began to strain. An early group of employees left due to disagreements with him and other management regarding the safe development of AI, ultimately founding the competitor Anthropic. Musk also had a falling out with Altman and personally sued OpenAI and Altman, accusing them of deviating from the company's founding principles and alleging that Altman was lining his own pockets, but later withdrew the lawsuit. At the same time, Musk founded his own AI company, xAI.

Even Graham, who had always praised Altman and believed in him since his teenage years, began to experience a rift with him. After OpenAI was founded, Altman continued to serve as YC president, but his attention was divided, which displeased the YC leadership. In 2019, Graham flew from the UK to California to confront Altman face-to-face. Graham later recalled that YC needed a leader who could fully commit. As a result, Altman ultimately resigned from his position as YC president.

From OpenAI's founding mission, it is evident that Altman harbored grand ambitions: he was committed to ensuring that the AI developed by the company could benefit all of humanity. However, in a brief moment last November, his drive seemed to exceed his control. The OpenAI board made a difficult decision: to protect humanity, Altman must temporarily step away. But surprisingly, five days later, he returned to the company and helped replace some board members.

Clearly, Altman once again emerged in a way that consolidated his power. Now, he is fully committed to his next grand goal: to enable artificial intelligence to surpass human performance in various tasks. He firmly believes that "in the not-too-distant future," this vision will become a reality.