Key Takeaways

  • Fidji Simo steps down from her full-time role at OpenAI.
  • She will transition to a part-time advisory position due to ongoing health issues.
  • Simo’s departure creates a leadership gap as OpenAI prepares for a potential IPO.
  • The company recently launched new AI models amid executive changes.

Fidji Simo’s Departure

Fidji Simo, the second-in-command at OpenAI, is stepping back from her full-time position. This decision comes as she faces a prolonged medical leave, which has been more challenging than anticipated. In a note to staff, Simo announced her shift to a part-time advisory role.

Background and Role at OpenAI

Simo joined OpenAI in May 2025 as the CEO of Applications, a newly established position that consolidated the company’s business and product operations. Her appointment marked a significant restructuring, with key executives like COO Brad Lightcap and CFO Sarah Friar reporting directly to her. Sam Altman, the CEO, shifted his focus towards research and safety during this transition.

Before her tenure at OpenAI, Simo was the CEO of Instacart, leading the company through its IPO in 2023. She also spent over a decade at Meta, where she managed the Facebook app.

Health Issues and Leadership Changes

Simo first revealed her health struggles in April, citing a relapse of a neuroimmune condition. This announcement coincided with other significant changes in the executive team, including Lightcap’s new role in special projects and CMO Kate Rouch’s departure for health reasons. Kevin Weil has also left the company since then.

With Simo’s exit, Altman is now tasked with finding a successor as OpenAI looks toward a potential IPO. Simo was seen as a strong candidate for increased responsibilities in a public company setting, making her departure a notable loss for the organization.

Shifts in OpenAI’s Strategy

During her time, Simo focused on expanding OpenAI’s consumer business. However, growth for ChatGPT slowed last year, prompting the company to pivot towards coding tools, an area where it has been lagging behind competitors like Anthropic.

Following the news of her resignation, Simo shared her thoughts on X, with Altman expressing sadness over her decision and gratitude for her contributions to the company.

Recent Developments at OpenAI

On the same day as Simo’s announcement, OpenAI introduced its new GPT-5.6 model family, which includes Sol, Terra, and Luna, along with a new agent called ChatGPT Work designed for office tasks. These releases are seen as direct competition to Anthropic.

OpenAI’s executive team appears to be relatively small, especially considering its recent valuation of $852 billion. Alongside Altman, the leadership includes Lightcap, Friar, and co-founder Greg Brockman, who has been overseeing product strategy during Simo’s absence.

Future Implications

Simo’s departure also highlights OpenAI’s evolving approach to employee equity. The company has made significant changes to its stock vesting policies, allowing new hires to start vesting equity from day one. This move aims to attract and retain talent amid a competitive landscape.

While the reasons behind the recent executive departures are not linked to compensation issues, the ongoing changes reflect the challenges and dynamics within OpenAI as it navigates its future.