OpenAI loses 3 top executives as it cuts back on 'side quests'

OpenAI has announced the departure of three high-ranking executives, marking a significant shift within the organization. Kevin Weil, who led the scientific research division and previously served as chief product officer, revealed on LinkedIn that his team, OpenAI for Science, will be restructured into other research groups, resulting in his exit from the company. In addition, Bill Peebles, the head of OpenAI's AI video application Sora, confirmed his departure. Although he did not provide specific reasons in his announcement, it is noteworthy that Sora was discontinued last month due to financial and resource challenges. Peebles expressed pride in the team's commitment to responsibly launching the technology and influencing societal standards. An OpenAI representative stated that the company is consolidating its business and product strategies. As part of this restructuring, Prism, an AI platform for scientists previously overseen by Weil, will now be integrated with Codex, OpenAI’s developer assistant that is expanding its capabilities beyond just coding. Srinivas Narayanan, the chief technology officer for OpenAI's B2B applications, is also stepping down to focus more on family commitments. His departure is said to be unrelated to the other executives' exits, according to sources close to the situation. This executive turnover comes as OpenAI intensifies its focus by reducing 'side projects' and prioritizing its business offerings. This strategic pivot, led by CEO of applications Fidji Simo, aims to enhance profitability in anticipation of an initial public offering (IPO). Simo is currently on medical leave. Meanwhile, OpenAI faces increasing competition from Anthropic, whose recent innovations, including Claude Code, have begun to attract business interest, raising concerns about a possible 'SaaS-pocalypse.' Reports indicate that Anthropic's valuation has surged to as much as $800 billion, more than doubling its last valuation from earlier this year, while OpenAI was valued at $852 billion in a funding round announced last month.