Fidji Simo, OpenAI’s second-ranking executive, plans to leave her full-time job after an extended medical leave, according to The Wall Street Journal. The exit removes a senior operator from the company while OpenAI is preparing for a possible public offering as soon as this year and trying to win more business customers from Anthropic.
Simo told employees Thursday that her medical condition had worsened and that recovery would take longer than she had expected, the Journal reported. She will remain connected to OpenAI as a part-time adviser.
Chief Executive Sam Altman had put Simo in charge of OpenAI’s product and business organizations. The appointment shifted a large chunk of management work away from Altman, including oversight of the company’s chief financial officer and chief revenue officer, according to the Journal. Simo joined OpenAI last August after running Instacart and previously holding a senior role at Facebook.
Her departure leaves Altman with another senior vacancy to solve at a company that has made executive churn a recurring feature, not a side effect. The Journal reported that Simo had been expected to take an even larger role after OpenAI went public.
Responsibilities move to Brockman, Friar and Kwon
In her note to staff, Simo said her work would be divided among President Greg Brockman, Chief Financial Officer Sarah Friar and Chief Strategy Officer Jason Kwon, according to the Journal. Denise Dresser, OpenAI’s chief revenue officer, will report to Brockman.
Simo had gone on medical leave in April, telling employees that a neuroimmune condition had worsened. The Journal reported that her absence at the time created concern among investors and employees about OpenAI’s direction.
In the internal note, Simo wrote: “This has been one of the hardest decisions of my career, but my body left me no choice—my symptoms became as loud as I am stubborn.” In a post on X, she said people had called her courageous for prioritizing her health when she first took leave. “The truth is that I am only making this decision now because I failed to make it many times before,” she wrote.
OpenAI’s business push is getting reshuffled
Simo was brought in to expand ChatGPT’s business. The Journal reported that she added advertising to the chatbot and oversaw features including health advice. Those are not minor knobs. Ads change the economic logic of a chatbot, and health features move the product into a category where user trust and legal caution matter more than demo polish.
The Journal also reported that ChatGPT’s growth slowed late last year, contributing to missed internal revenue targets. OpenAI then shifted more attention toward AI coding products for businesses after trailing Anthropic in that market.
Simo led early work on a coding-focused “superapp” that OpenAI launched Thursday, according to the Journal. She also cut side projects, including Sora, the company’s video-generation app.
Anthropic recently passed OpenAI’s valuation for the first time, the Journal reported, and remains the default option for many businesses adopting AI tools. OpenAI has been trying to court enterprise customers with its own products. The companies are also in a price fight that the Journal said could push profitability further out as both prepare for planned public listings.
At Allen & Co.’s Sun Valley retreat this week, OpenAI executives discussed plans to compete with Anthropic for enterprise customers, according to a person who spoke with them and was cited by the Journal.
This story draws on original reporting from The Wall Street Journal.