TechCrunch47%
Fidji Simo steps down from OpenAI's No. 2 role 7%
By Connie Loizos24%
7/9/2026, 11:38:00 PM
BS Summary: This article contains 17 faulty reasoning types, including Attempt to Sell a Product or Service, Representativeness Heuristic, and Self-Serving Bias, with Post Hoc (False Cause) as the most egregious example at 8.2% saturation with 77 hits. Analysis detected 517 faulty-reasoning hits from 940 analyzed words, generating a BS Score of 22.9% and a BS Rank of 7% (20,480 of 21,886 articles). This article is better (less manipulative) than 93.60% of the article peer group.
Fidji Simo, OpenAI’s No. 2 executive, is stepping down from her full-time role, The Wall Street Journal reports .
In a staff note Thursday, Simo said her ongoing medical leave has proven longer and harder than expected, and that she’ll transition to a part-time advisory role instead.
Simo joined OpenAI’s board of directors in 2024 and joined OpenAI in May 2025 as CEO of Applications, then a newly created role reporting directly to Sam Altman that consolidated the company’s business and product operations.
Her appointment came with a broader reporting shift: COO Brad Lightcap, CFO Sarah Friar, and CPO Kevin Weil all began reporting to her, while Altman stepped back to focus on research, compute, and safety.
Simo first disclosed her health issues in April, when she announced she was taking medical leave for a relapse of a neuroimmune condition; that same memo publicly announced that Lightcap was moving into a new “special projects” role and that CMO Kate Rouch was leaving the company to focus on cancer recovery.
Weil has since left the company , too.
Simo came to OpenAI from Instacart, where she’d been CEO since 2021 and led the company through its 2023 IPO, and before that spent over a decade at Meta, including running the Facebook app.
Simo’s decision to step back permanently leaves Altman searching for a successor right as OpenAI itself eyes a possible IPO.
She’d been widely seen as a likely candidate to take on even more responsibility once OpenAI went public, making this a real vacuum for him to address.
Simo was primarily focused on growing OpenAI’s consumer business.
But ChatGPT’s growth cooled late last year, missing internal revenue targets, pushing the company to lean harder into coding tools instead, an area where it has been, and for now continues to be, trailing Anthropic.
TechCrunch has reached out to OpenAI for more information.
Soon after the Journal story broke, Simo shared the news directly on X, after which Altman responded , also on X: “i am really sad about this and very grateful for all fidji has done for openai, and even grateful for her friendship and who she is as a person. we all wish her the best for a speedy recovery. this sucks.”
Simo’s announcement lands on a busy news day for OpenAI.
Earlier Thursday, the company launched its new GPT-5.6 family of models — Sol, Terra, and Luna — alongside a new agent called ChatGPT Work, designed to handle multistep office tasks like drafting documents, spreadsheets, and presentations.
Both releases were framed by OpenAI as directly targeting Anthropic.
OpenAI’s executive ranks appear from the outside to be on the thin side for a company that was most recently assigned an $852 billion valuation.
In addition to Altman, Lightcap, Friar, and co-founder Greg Brockman (who is also the company’s president and was overseeing product strategy while Simo was out), its bench includes Denise Dresser, who in December joined as the company’s chief revenue officer, overseeing its “global revenue strategy across enterprise and customer success,” per a release at the time.
It wouldn’t be shocking to see Dresser take on a more expansive role, given she previously spent two years as the CEO of Slack and, before that, spent 14 years with Slack’s parent company, Salesforce.
Simo’s departure comes against another backdrop worth understanding: OpenAI’s shifting approach to employee equity.
In April of last year, the same month that Simo joined, the company shortened its vesting cliff — the waiting period before new hires’ stock grants begin vesting — from the industry-standard 12 months to six months.
Then in December, OpenAI eliminated the cliff altogether for new hires, letting equity start vesting from day one.
The move, described internally by Simo as a way to let employees “take risks” without fear of losing equity if let go early, came amid an escalating AI talent war and reflects just how aggressively OpenAI has been spending to retain staff.
The company was projected to spend $6 billion on stock-based compensation in 2025 alone.
None of the aforementioned exits appear tied to compensation.
Executive equity packages are typically negotiated individually and could have entirely different vesting terms.
AI , Fidji Simo , OpenAI
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Editor in Chief & General Manager
Loizos has been reporting on Silicon Valley since the late ’90s, when she joined the original Red Herring magazine.
Previously the Silicon Valley Editor of TechCrunch, she was named Editor in Chief and General Manager of TechCrunch in September 2023.
She’s also the founder of StrictlyVC, a daily e-newsletter and lecture series acquired by Yahoo in August 2023 and now operated as a sub brand of TechCrunch.
You can contact or verify outreach from Connie by emailing connie@strictlyvc.com or connie@techcrunch.com , or via encrypted message at ConnieLoizos.53 on Signal.
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