OpenAI's No. 2 Executive Fidji Simo Steps Down Amid Health Crisis and Leadership Turmoil

Fidji Simo, OpenAI's chief operating executive and Sam Altman's top deputy, is stepping down from her full-time role due to a worsening neuroimmune condition, she told staff in an internal note Thursday. She will shift to a part-time advisory capacity, leaving a significant leadership gap at one of the most consequential moments in the company's history — just as OpenAI eyes a public offering as soon as this year.

Simo joined OpenAI in August 2025 and quickly became one of its most powerful figures, taking over managerial responsibilities from Altman that included oversight of the CFO and chief revenue officer. She had been widely expected to take on an even bigger role once the company went public. Her earlier medical leave in April had already rattled investors and employees; her full departure now forces Altman to restructure leadership on the fly. Her duties will be split among President Greg Brockman, CFO Sarah Friar, and Chief Strategy Officer Jason Kwon, with Chief Revenue Officer Denise Dresser now reporting to Brockman.

During her tenure, Simo made tangible marks on OpenAI's consumer strategy — introducing advertising to ChatGPT and adding health advice features — drawing on her background as former Instacart CEO and a senior executive at Facebook. But ChatGPT's growth stalled in late 2025, contributing to missed internal revenue targets, and the company abruptly pivoted toward AI-powered coding tools for businesses after falling behind rival Anthropic in that market. Simo helped lead development of a coding-focused 'superapp' that OpenAI launched the same day her departure was announced, and she oversaw cuts to side projects including the video-generation app Sora.

The leadership shakeup arrives at a particularly bruising competitive moment. Anthropic has surpassed OpenAI in valuation for the first time, cementing its status as the default AI vendor for enterprise customers. The two companies are now engaged in a damaging price war that threatens to delay profitability ahead of both firms' planned IPOs. At the Allen & Co. Sun Valley retreat this week, OpenAI executives were actively strategizing how to claw back enterprise market share from Anthropic.