What OpenAI’s Leadership Crisis Taught the World About Followership

A photo of a ChatGPT login page. The page says OpenAI announces the launch of ChatGPT Plus, a new subscription plan for enhanced conversational AI capabilities.

Silicon Valley is no stranger to disruption, but in November 2023, OpenAI’s biggest shake-up didn’t come from a breakthrough in artificial intelligence. It came OpenAI’s own employees.

When OpenAI’s board abruptly fired CEO Sam Altman, the tech world was caught off guard. But what followed was even more remarkable: in an open letter to the companh's Board of Directors, nearly 800 OpenAI employees publicly threatened to resign unless the board reinstated Altman and made sweeping changes.

Within days, the board caved, Altman returned, and OpenAI’s workforce remained intact.

The Myth of the All-Powerful Leader

We often think of leadership as a one-way street: visionaries at the top, and followers carrying out the plan. But leadership is a relationship, and followers wield more power than they’re often given credit for.

In OpenAI’s case, employees decided not to be passive spectators. They became active, engaged followers. Critical thinkers who refused to be sidelined in a decision that would impact the company’s future. They used collective action to shaping an outcome in a way that even investors couldn’t.

Why This Matters for Business Leaders

This case isn’t just about OpenAI. It’s a leadership lesson:

1. Leaders can’t afford to ignore their followers. Decisions made in isolation can backfire when employees push back.

2. Organizational success depends on engaged, empowered employees who actively shape company culture and direction.

3. In an era of transparency and social media, internal disputes quickly become public—and public perception can influence outcomes.

Want to Learn More?

The editors of Sage Originals Business Cases awarded my student-focused, peer-reviewed business case with their Editor's Choice Leadership case award.

The case and teaching notes reflect on OpenAI’s leadership crisis with firm connections to concepts of followership. It's intended for educators looking to explore leaderiship and followership in the classroom.

You can find the full case study here. Sage offers a free trial subscription.

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