OpenAI Sparks Fresh Controversy by Rehiring Former Staff Amid Misconduct Allegations

SAN FRANCISCO – OpenAI has rehired Barret Zoph and Luke Metz, the co-founders of AI startup Thinking Machines Lab, just months after the pair departed the company in late 2024.

The rehiring has sparked conflicting reports regarding the nature of the duo's exit from their startup. A source familiar with the matter said leadership at Thinking Machines believed Zoph engaged in "serious misconduct" and fired him on Wednesday, reportedly before the startup learned he was returning to OpenAI.

Thinking Machines also expressed concerns that Zoph may have shared confidential information.

OpenAI leadership disputed these claims in an internal memo. Fidji Simo, OpenAI’s head of applications, stated that the recruitment of Zoph and Metz had been in development for weeks. Simo noted that Zoph informed his superiors at Thinking Machines of his intent to resign on Monday.

OpenAI further stated that it does not share the ethical concerns raised by Thinking Machines regarding Zoph’s behavior.

The talent acquisition extends beyond the co-founders, as at least three other Thinking Machines employees are also expected to join OpenAI. The controversial circumstances surrounding the move have drawn comparisons to the internal turmoil at OpenAI in 2023, when CEO Sam Altman was briefly ousted from the company.

The leadership shakeups at OpenAI and Thinking Machines represent far more than routine executive turnover; they are the latest flashpoints in an escalating talent war that is fundamentally remapping the competitive landscape of artificial intelligence. In a sector where the specialized expertise of a few elite researchers can dictate billions of dollars in market valuation, human capital has emerged as the industry’s primary strategic asset.

When top-tier engineers migrate between rival laboratories, the impact is rarely just operational—it represents a seismic shift in technical capacity and competitive moat. While "disagreements over product direction" has become the standard Silicon Valley euphemism for these departures, the underlying reality typically involves a volatile mix of power struggles, compensation disputes, and outsized egos.

This persistent instability, which echoes the 2023 boardroom coup that briefly ousted Sam Altman, underscores a glaring paradox: while the AI industry is defined by its technological sophistication, its corporate governance and organizational cultures remain remarkably immature. As institutional investors continue to pour unprecedented capital into the race for Artificial General Intelligence (AGI), internal "coups" and high-stakes drama are becoming an entrenched part of the business model. For the firms leading the charge, institutional stability increasingly appears to be the price of hyper-growth.