Larry Summers has resigned from OpenAI's board of directors after the release of more than 20,000 documents revealing his correspondence with convicted sex offender Jeffrey Epstein. The departure marks another leadership shake-up for the AI powerhouse, coming just as the company navigates intense regulatory scrutiny and rapid expansion in the artificial intelligence race.
The artificial intelligence industry just lost one of its most prominent board members. Former Treasury Secretary Larry Summers announced his resignation from OpenAI's board Wednesday, becoming the latest casualty in the widening Jeffrey Epstein scandal that's reshaping corporate America. The decision comes after House investigators released a trove of documents last week revealing Summers maintained correspondence with the convicted sex offender, despite knowing about his criminal background. "I am grateful for the opportunity to have served, excited about the potential of the company, and look forward to following their progress," Summers told CNBC in his resignation statement. The departure couldn't come at a more critical time for OpenAI. The company is racing to maintain its lead in the AI arms race while simultaneously navigating intense regulatory scrutiny from Washington. Summers' financial expertise was considered crucial as OpenAI transitions from a research nonprofit to a for-profit powerhouse valued at over $150 billion. The House Oversight and Government Reform Committee's document dump contained more than 20,000 files obtained through a subpoena of Epstein's estate, revealing the extensive network of relationships the disgraced financier maintained with prominent figures across politics, academia, and technology. The release has already forced several high-profile resignations and sparked calls for congressional investigations. Summers joined OpenAI's board in December 2023 during what employees still call "The Blip" - the chaotic weekend when CEO Sam Altman was briefly ousted before returning to lead the company. He was appointed alongside Bret Taylor, former co-CEO of Salesforce, and Quora CEO Adam D'Angelo as part of efforts to rebuild trust and governance following the leadership crisis. The Harvard professor emeritus had been stepping back from public commitments since Monday, when he issued a statement saying he was "deeply ashamed" of his actions and took "full responsibility" for continuing to communicate with Epstein. But it wasn't immediately clear whether his OpenAI position would be affected until Wednesday's announcement. OpenAI's remaining board members said they respect Summers' decision and appreciate "his many contributions and the perspective he brought to the Board." The company now faces the challenge of finding another heavyweight board member as it prepares for what many expect to be the largest IPO in tech history. The timing adds pressure to 's already complex corporate structure. The company is in the middle of converting from a nonprofit to a for-profit entity, a transition that requires careful navigation of regulatory requirements and stakeholder interests. Summers' departure removes a key voice with deep experience in financial markets and government relations. The scandal is also creating ripple effects across academia. Democratic Senator Elizabeth Warren called for Harvard University to sever ties with Summers, though the university hasn't indicated it will take such action. Summers said he'll continue fulfilling his teaching obligations while stepping back from other public roles. The Epstein documents release is far from over. Congress passed a bipartisan bill Tuesday ordering the Department of Justice to release all its files on Epstein, setting up President Trump to sign comprehensive disclosure legislation when he takes office. The move suggests more revelations could be coming that might impact other corporate leaders and board members. For , Summers' resignation represents another chapter in the company's tumultuous governance story. Since its founding as a nonprofit research lab, the organization has weathered the Altman ouster, multiple board reshuffles, and now the departure of a key financial expert. The company continues operating with a smaller board as it seeks new members who can provide oversight for one of the world's most valuable AI companies.
