Fidji Simo, who has served as OpenAI’s No. 2 executive since May 2025, will transition from her full‑time duties to a part‑time advisory role, the company confirmed in an internal memo on Thursday. Simo cited a longer‑than‑expected recovery from a relapse of a neuroimmune condition that forced her into medical leave in April.
When OpenAI created the chief applications officer position earlier this year, it consolidated business and product operations under Simo’s oversight. The role gave her direct reports that previously reported to the chief operating officer, chief financial officer and chief product officer—Brad Lightcap, Sarah Friar and Kevin Weil, respectively. Sam Altman stepped back from day‑to‑day management to focus on research, compute and safety, positioning Simo as the senior leader driving revenue and consumer growth.
Simo entered OpenAI after a high‑profile stint at Instacart, where she served as CEO and led the firm through its 2023 IPO. Before that she spent over a decade at Meta, most recently heading the Facebook app. Her move to OpenAI was seen as a signal that the AI firm was preparing for a public offering, and she quickly became a potential successor to Altman.
The announcement arrives as OpenAI rolls out its latest GPT‑5.6 family—Sol, Terra and Luna—alongside a new ChatGPT Work agent designed to automate multi‑step office tasks such as drafting documents, building spreadsheets and creating presentations. Both releases were framed as direct competition to Anthropic, underscoring the company’s aggressive product roadmap.
OpenAI’s leadership roster has already shifted in recent months. Lightcap moved to a “special projects” role, chief marketing officer Kate Rouch left to focus on cancer treatment, and Kevin Weil departed the firm. The company also added Denise Dresser as chief revenue officer in December, a former Slack CEO with a background at Salesforce, raising speculation that she could assume broader responsibilities.
In addition to the personnel changes, OpenAI has altered its equity compensation model. In April 2023 the firm reduced the vesting cliff for new hires from twelve months to six, and in December eliminated the cliff entirely, allowing stock to vest from day one. The policy shift, described by Simo as a way to let employees “take risks,” came amid an intensifying talent war in the AI sector. OpenAI expects to spend about $6 billion on stock‑based compensation in 2025.
Altman responded to Simo’s tweet about her departure with a brief message expressing sadness and gratitude for her contributions and friendship. The tone of the exchange highlighted the personal dimension of the leadership change, even as the company continues to navigate a busy news cycle marked by product launches and IPO speculation.
With Simo’s exit, OpenAI now faces the task of filling a critical operational role while maintaining momentum on its consumer and enterprise initiatives. The board and senior executives have not disclosed a timeline for appointing a permanent replacement, leaving investors and employees to watch closely as the firm prepares for its next growth phase.
This article was written with the assistance of AI.
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