Sam Altman was been looking to raise tens of billions of dollars from Middle Eastern sovereign wealth funds to create an AI chip startup to compete with processors made by Nvidia, $NVDA, before being fired, per Bloomberg.

Upon announcing Sam Altman's departure, the OpenAI board also disclosed that Mira Murati, an Albanian-born engineer educated at Dartmouth and the company's Chief Technology Officer, would serve as the interim Chief Executive Officer of OpenAI.

In addition to disagreements over strategy, the board contended with Altman's entrepreneurial aspirations. Altman had been seeking substantial funding from Middle Eastern sovereign wealth funds to establish an AI chip startup, aiming to compete with processors produced by Nvidia Corp., according to a source familiar with the investment proposal. Altman was exploring a multibillion-dollar investment from SoftBank Group Corp. Chairman Masayoshi Son for a new company focused on AI-oriented hardware, in collaboration with former Apple designer Jony Ive.

Ilya Sutskever and his allies on the OpenAI board expressed dissatisfaction with Altman's attempts to raise funds under OpenAI's name. They were concerned that these new businesses might not adhere to the same governance model as OpenAI, the source added.

The repercussions of these developments reverberated widely within OpenAI and across the tech industry. Greg Brockman, OpenAI's president and former board chairman, expressed shock and sadness on X (formerly Twitter), stating that he and Sam were still trying to understand the events. Altman was informed of his firing during a Google Meet where Sutskever delivered the news abruptly.

Executives at Microsoft Corp., the largest investor in OpenAI, were reportedly taken by surprise, with CEO Satya Nadella expressing anger at the news. Sutskever's concerns had been escalating, leading him to form a new team in July to control future AI systems. A month ago, Sutskever's responsibilities were reduced, reflecting friction with Altman and Brockman.

Altman's sudden firing shocked investors and startups in Silicon Valley, introducing uncertainty into the tech industry. While founder departures are not uncommon in Silicon Valley's lore, Altman's exit may have a broader impact on the industry he represented.

The tech community's initial response ranged from surprise to dismay, with speculation running wild about the reasons behind Altman's firing. With limited information from the company, industry discussions flourished, and prediction platforms began taking bets on the cause.

As of Friday morning, Altman continued to send regular emails to employees and appeared at events representing OpenAI. The company's recent DevDay had generated excitement about its products.

OpenAI, initially established as a non-profit in 2015, evolved its business model, gaining prominence last year with the introduction of ChatGPT. The company's valuation reached $86 billion earlier this year as it engaged in talks to sell existing employee shares.