Open AI is bringing in new talent at the top. OpenAI announced late Wednesday that it’s tapped Instacart CEO Fidji Simo as the head of its applications business, who will be reporting to CEO Sam Altman.
In a memo to employees that OpenAI published on its blog, Altman wrote that applications bring together a group of existing business and operational teams responsible for how their research reaches and benefits the world. He added that Simo will “focus on enabling our ‘traditional’ company functions to scale as we enter a next phase of growth.”
OpenAI is involved in an ongoing legal dispute with Elon Musk, which he co-founded in 2015. Musk alleges that the organization has strayed from its original mission of developing artificial general intelligence (AGI) for the benefit of humanity. He specifically criticizes OpenAI’s transition from a nonprofit to a for-profit structure, particularly after its partnership with Microsoft.
READ: Elon Musk’s bid to halt OpenAI’s for-profit shift denied by US court (March 5, 2025)
Musk argues that this shift has turned OpenAI into a subsidiary of Microsoft, prioritizing profit over its ethical goals. Musk is seeking to compel OpenAI to honor its original commitment to AGI development and restore its nonprofit status. OpenAI, in response, denies any wrongdoing, maintaining that it has always adhered to its mission and that the shift to a for-profit model was necessary for funding the ambitious work of AGI. The legal proceedings are ongoing, with a jury trial scheduled for March 2026. The case reflects broader concerns over AI development and corporate influence.
Simo took Instacart public a year earlier, helping to break the longest tech IPO drought in three decades. Instacart is an American grocery delivery and pickup service that partners with major retailers including Costco, Safeway, and Kroger, to provide customers with the ability to order groceries online. Customers can browse a wide selection of items through the Instacart website or app, and personal shoppers pick, pack, and deliver the groceries to their doorsteps. Instacart also offers a same-day delivery option, which makes it a popular choice for busy individuals. Founded in 2012, Instacart operates in many U.S. cities and has expanded to offer alcohol, home essentials, and other products.