OpenAI loses top executive Simo amid IPO push
The departure of Fidji Simo, OpenAI's second-in-command, creates a leadership vacuum at the $852 billion AI company just as it prepares for a public listing and battles Anthropic for market share.
Fidji Simo is stepping down from her role as OpenAI's chief executive of Applications, transitioning to a part-time advisory position after an extended medical leave for a relapse of a neuroimmune condition.
Simo, who joined OpenAI's board in 2024 and took the newly created Applications role in May 2025, had been the company's most senior operational leader. COO Brad Lightcap, CFO Sarah Friar, and CPO Kevin Weil all reported to her, while CEO Sam Altman shifted focus to research, compute, and safety.
Her departure removes a likely candidate to lead OpenAI through a potential public listing. Simo previously led Instacart through its 2023 IPO and spent over a decade at Meta, including running the Facebook app. Altman responded on X: "i am really sad about this and very grateful for all fidji has done for openai."
A thin bench
The exit leaves OpenAI's executive ranks looking sparse for a company valued at $852 billion. Beyond Altman, Lightcap, Friar, and president Greg Brockman, who oversaw product strategy during Simo's absence, the most prominent addition is chief revenue officer Denise Dresser, a former Slack CEO who joined in December. Dresser is a plausible candidate to absorb some of Simo's responsibilities.
The leadership churn has been notable. Lightcap moved to a "special projects" role in April, CMO Kate Rouch left to focus on cancer recovery, and Weil has since departed entirely.
Consumer growth stalls
Simo's primary mandate was growing OpenAI's consumer business, a task that has grown harder. ChatGPT's growth cooled late last year, causing the company to miss internal revenue targets. OpenAI has since pivoted toward coding tools, a segment where it currently trails Anthropic.
That competitive pressure was evident on Thursday, when OpenAI launched its GPT-5.6 model family and a new agent called ChatGPT Work for office tasks, both framed as direct responses to Anthropic.
A costly talent war
Simo's departure is unrelated to compensation, but it highlights the extraordinary lengths OpenAI has gone to retain staff. Under her direction, the company shortened its equity vesting cliff from 12 months to six in April 2025, then eliminated it entirely in December. OpenAI was projected to spend $6 billion on stock-based compensation this year alone.
For investors watching OpenAI's path to an IPO, Thursday's news presents a mixed picture: ambitious new product releases alongside the loss of the executive most positioned to drive the commercial strategy behind them.
