OpenAI's CEO and co-founder, Sam Altman, announced that Instacart's current CEO, Fidji Simo, will step down to join OpenAI as the head of its applications division. Simo will report directly to Altman, who continues to lead the ChatGPT developer backed by Microsoft. This leadership change follows OpenAI's recent decision to withdraw a major restructuring plan, allowing its non-profit parent company to retain control, potentially limiting Altman's power.
OpenAI stated in a blog post that Simo, who joined OpenAI's board last year, will leave Instacart in the coming months and assume her new role later this year. In a message to employees, Simo mentioned that Instacart will appoint a new CEO soon, while she will remain as chairperson to assist with the transition.
Earlier this month, Instacart projected its core profit for the second quarter to exceed Wall Street expectations. The company emphasized in a statement that Simo's departure does not indicate any changes in its business or operations.
