Unveiling Sam Altman: Biographer Keach Hagey on Why the OpenAI CEO is Destined for Today’s Tech Era

In “The Optimist: Sam Altman, OpenAI, and the Race to Invent the Future,” Wall Street Journal reporter Keach Hagey delves into our current fascination with AI, centered around one of its pivotal figures—Sam Altman, co-founder and CEO of OpenAI.

Hagey starts by exploring Altman’s roots in the Midwest, then outlines his journey through the startup Loopt, the accelerator Y Combinator, and ultimately his role at OpenAI. She also provides insights into the tumultuous period when Altman was briefly ousted and then rapidly reinstated as CEO.

Reflecting on what OpenAI employees refer to as “the Blip,” Hagey notes that the failed coup against Altman exposed the inherent instability of OpenAI’s structure, wherein a for-profit entity operates under the oversight of a nonprofit board. She suggests that with OpenAI withdrawing from plans to elevate the for-profit segment’s power, this “fundamentally unstable arrangement” will likely deter potential investors.

Does this indicate that OpenAI might face challenges in securing necessary funding? Hagey agrees, indicating it “absolutely” could become a concern. “My research into Sam suggests that he might rise to that challenge,” she explains, “but success is not guaranteed.”

Additionally, Hagey’s biography, also available as an audiobook through Spotify’s publishing imprint, investigates Altman’s politics, which she characterizes as “pretty traditionally progressive.” This is somewhat unexpected given that he has secured significant data center agreements with support from the Trump administration. “In some respects, I feel that Sam Altman was made for this moment, as he possesses strong deal-making skills which resonate with Trump’s appreciation for substantial agreements,” she adds.

In a conversation with TechCrunch, Hagey elaborates on Altman’s reaction to the book, his reliability, and the AI “hype universe.” This discussion has been refined for clarity and brevity.

At the beginning of the book, you mention Altman’s hesitations about the project—specifically, the concern that there’s too much focus on individuals rather than on organizations or broader movements. Did you share those worries?

Actually, I don’t share those concerns, as this was intended to be a biography. The project centers on an individual, rather than an organization. Furthermore, I believe that Altman’s moral choices and formation are significant because the overarching project of AI carries profound ethical implications, which is foundational to OpenAI’s mission. These are indeed valid inquiries regarding an individual’s impact.

As for the timing, while it may be premature to evaluate the overall impact of AI, OpenAI’s story is remarkable—it has transformed the stock market and altered business narratives. From my perspective as a business journalist, AI dominates our discussions daily, so I don’t view the timing as too soon.

Despite his concerns, Altman was willing to cooperate with you. Can you describe your interactions with him during your research for the book?

Initially, he wasn’t pleased to learn about the book. There was a prolonged negotiation phase. I had initially thought to proceed without his involvement—what we call a “write-around” biography, which I’ve done many times. However, as I continued my research, he gradually became more open. In the end, he generously agreed to several in-depth interviews, sharing his insights with me.

Has he provided any feedback on the completed book?

No, he did mention the project on social media and acknowledged his involvement, but he was very clear about not wanting to read it. It’s akin to how I prefer not to watch my own TV appearances or podcasts.

In the book, he is depicted as an archetypal figure of Silicon Valley. What key traits do you believe make him representative of the Valley and the tech industry?

To start, his youth stands out, as the Valley idolizes young entrepreneurs. He launched his first startup at just 19 years old, impressing industry veterans during meetings with telecom operators. Moreover, he is an extraordinary talent in fundraising, largely because he can effectively tell a story. It’s no coincidence that a skilled salesperson leads a major AI company today.

This raises questions regarding Altman’s trustworthiness. Can you elaborate on the concerns people seem to hold about that? To what extent is he viewed as trustworthy?

As a salesman, he excels at convincing others that he can envision the future and align with their interests. However, some have observed inconsistencies between his words and reality, leading to wavering trust over time. This has happened at various points during his career, including at his first startup and notably at OpenAI. While this pattern exists, it’s a common critique of individuals with strong sales prowess.

Thus, it’s not necessarily that he is uniquely untrustworthy; rather, it’s a feature of his role in leading significant organizations. Additionally, the book addresses management challenges where he struggles with conflict resolution, often telling people what they want to hear. This has created turbulence in management dynamics, exemplified by situations at Loopt and OpenAI.

You mentioned Altman’s firing, which was also highlighted in a book excerpt shared in The Wall Street Journal. Reflecting on that event, what do you think the larger implications are, given the complexity of the different factions within the company?

The broader issue at play is that the nonprofit governance structure is simply not stable. Accepting investment from major players like Microsoft while denying them any governance input is problematic. While these stakeholders may have formal limitations, they still exert influence. The incident surrounding Altman’s removal clearly illustrated how power dynamics operate in reality.

In a significant turn of events, the company decided to reinstate Sam Altman after threats that they would switch to Microsoft if he wasn’t brought back.

The narrative in the book extends up to the end of 2024, a point when numerous updates have emerged since then. You’ve been tracking these developments, including the recent announcement that they aren’t fully transitioning to a for-profit model. How do you think this will impact OpenAI moving forward?

This shift will likely complicate their fundraising efforts, as they have essentially reversed their previous position. While the new structure as a public benefit corporation is somewhat more favorable to investors and clarifies certain aspects, the core dynamic remains: a nonprofit board governs a for-profit entity. This fundamentally unstable setup triggered the earlier issues within the organization and will likely continue to raise concerns among potential investors, especially given their limited control over their investments.

OpenAI operates in a capital-intensive domain. If they encounter difficulties in attracting additional funding, could that pose an existential threat to the company?

It certainly could. My investigations into Sam suggest that he might rise to meet this challenge, but success isn’t guaranteed.

Your book provides a dual perspective focusing on Sam’s identity while also referencing broader themes surrounding the future of AI. How did your research into his personal narrative influence your outlook on wider societal discussions about AI?

I delved deeply into Sam’s father, Jerry Altman, early on, primarily because it struck me how often he was overlooked in writings about Sam. My findings revealed that Jerry was a very idealistic person, passionate about public-private partnerships and the government’s role in shaping policy. His influence still lingers in how affordable housing is financed today.

Tracing Sam’s development further highlighted his longstanding belief that the government should fund and steer AI research. In the early stages of OpenAI, he sought government investment, though it didn’t materialize. He reflects on historic labs such as Xerox PARC and Bell Labs, which, while private, benefited significantly from government funding. He argues that this is the model to emulate.

Now, I observe that the U.S. appears to be rallying state resources to back Sam Altman’s ambition of constructing data centers, both domestically and internationally, including a recent announcement for one in Abu Dhabi. This long-held vision of his is now being pursued.

My interpretation of his vision suggests that, ideally, the government would fund and build the infrastructure while also regulating AI development for safety. However, it seems we are currently witnessing a shift where there is increased government investment but a retreat from safety oversight.

Absolutely! It’s a fascinating dynamic.

You characterize Sam as a political figure with various aspirations, navigating a landscape shaped by friends who have more traditionally liberal viewpoints, like Elon Musk and Peter Thiel. How would you define his current political stance?

I believe his core political beliefs haven’t shifted much; they tend to align with progressive values. While he has critiqued issues like cancel culture, he fundamentally views government as a mechanism for addressing societal challenges through taxes.

His ability to navigate the Trump era has been intriguing. He capitalized on the mutual interest in developing data centers while sidestepping other contentious issues. In many ways, I feel Sam Altman is suited for this moment, given his skills as a dealmaker, which resonate with Trump’s style—a focus on substantial endeavors that come with hefty price tags, an area where Altman excels.

Your book not only highlights Sam’s father but also provides insights into his family background. What aspects of his upbringing stand out regarding his development?

There’s a fusion of his father’s idealism and his mother’s ambition. His mother was a doctor who balanced her professional and family life while raising four children. This combination certainly has shaped him. Their tumultuous marriage, which I discovered during my research, also adds a layer of complexity. Sam himself has acknowledged experiencing anxiety for much of his life until engaging in meditation and other experiences.

His recent personal life, including fatherhood and marriage, marks significant milestones. Growing up as a young gay man in the Midwest, he faced challenges that fostered his resilience as a public speaker. The changes in societal attitudes, especially regarding LGBTQ+ rights, during his lifetime have consolidated his optimism for the future, especially evident at his wedding. This progress starkly contrasts with previous societal norms from the 1980s and 1990s.

Writing about AI reveals starkly divergent visions held by those in the field—some view it as a utopia while others warn of dystopian outcomes. This polarization can make discussions feel surreal. Did you find it challenging to navigate these extremes in your writing?

I see these contrasting visions as part of a singular narrative emphasizing the significant impact of AI. Both extreme perspectives feed into the same hype: the belief that AI will not just be transformative but might also fall short of that expectation—merely becoming another tool or an enjoyable distraction, rather than the monumental change everyone anticipates. I think the enthusiasts and the alarmists are both part of the same conversation.

As a journalist and biographer, you maintain a neutral stance. But where do you personally lean in this discussion?

Recently, I’ve found myself engaging with AI more frequently and discovering its improvements. Initially, during my research, I was more skeptical about its potential for economic transformation. However, I am now less doubtful, given my firsthand experiences with its advancements.