In early 2026, a series of internal Microsoft emails released during legal proceedings shed new light on the dramatic and unexpected dismissal of OpenAI CEO Sam Altman in November 2023. The emails, written by Microsoft Chief Technology Officer Kevin Scott to CEO Satya Nadella and senior executives, describe the episode as a “bungled” leadership failure driven by internal conflict, resource battles, and an inexperienced board.
Internal Tensions at OpenAI
According to Scott’s analysis, the crisis stemmed from two major unresolved issues inside OpenAI. The first was an escalating battle over GPU resources. After ChatGPT’s explosive success, demand for computing power became “literally insatiable.” Research teams felt starved as GPUs were redirected toward consumer products and commercial APIs. Meanwhile, the Applied AI division believed its revenue-generating momentum justified priority access. This resource tug-of-war created resentment and fractured collaboration.
The second issue involved professional tension between leadership figures. Chief Scientist Ilya Sutskever reportedly struggled with the promotion of Jakub Pachocki, his former subordinate, who was elevated to lead core model research after achieving breakthroughs Sutskever had been unable to deliver. Scott defended Altman’s decision, calling it the correct move for OpenAI’s long-term success, but acknowledged that it deepened personal and organizational strain.
Sharp Criticism of the OpenAI Board
Scott was particularly blunt about the OpenAI board’s role in the crisis. He argued that none of the board members had experience running large-scale organizations, which led them to underestimate the fallout of removing Altman. Rather than resolving internal issues, the move amplified them dramatically.
He also described some board members as aligned with “effective altruism” thinking, preferring to deliberate about artificial general intelligence rather than aggressively deploy real-world products. This made them, in Scott’s words, highly susceptible to a one-sided narrative portraying Altman’s commercial strategy as harmful to OpenAI’s mission.
How the “Coup” Unfolded
Microsoft was given almost no notice before the shock firing. Late Thursday night, the board informed then-CTO Mira Murati of their plan. Around 11:45 a.m. Friday, she alerted Satya Nadella and Kevin Scott just minutes before Altman was dismissed on a Google Meet call. Greg Brockman was removed from the board shortly after.
By Friday afternoon, dozens of researchers, led by Jakub Pachocki, pledged loyalty to Altman and threatened mass resignations. Within five days, nearly every OpenAI employee signed a letter demanding his return, forcing the board to reverse course and reconstitute leadership.
Final Takeaway
The emails reveal that Altman’s ouster wasn’t about a single incident but rather a volatile mix of resource shortages, leadership rivalries, and governance inexperience. Ultimately, employee solidarity and Microsoft’s influence restored stability but the episode stands as one of Silicon Valley’s most dramatic corporate crises.
