Larry Summers, a veteran of US economic policy and one of the key figures in stabilising corporate governance at OpenAI after the 2023 crisis, has resigned from the company’s board of directors. The former US Treasury secretary’s decision comes just days after Congress released documents shedding new light on his relationship with the late financier Jeffrey Epstein. Summers’ departure represents another shake-up in the structures of the ChatGPT creator, although this time dictated by external factors not directly related to technology.
Summers, who joined OpenAI’s board at the end of 2023 as part of a restructuring following the high-profile, temporary sacking of Sam Altman, announced his retirement from public life in a statement on Monday. He cited the need to “rebuild trust and repair relationships with loved ones” as the reason. For OpenAI, a company trying to maintain its image as a responsible AI leader, Summers’ presence became image ballast when the House of Representatives Oversight Committee made public correspondence suggesting close ties between the economist and Epstein.
In an official announcement, OpenAI’s board of directors accepted the resignation, thanking Summers for the perspective he brought, but behind the scenes the move is being read as an attempt by the company to quickly disassociate itself from the growing political scandal. Indeed, the issue has cross-industry dimensions. Harvard University, where Summers – a former chancellor of the university – still teaches, announced on Tuesday the launch of a new investigation into his contacts.
The political context of the resignation is dense. The release of the dossier followed a near-unanimous vote in Congress forcing the Department of Justice (DOJ) to publish the documents, something Donald Trump had opposed for months. The former president, whose ratings in Reuters/Ipsos polls have recently dropped to 38 per cent, is now attempting to redirect media and public attention to Democrats’ – including Summers’ – links to Epstein, while distancing himself from his own relationship with the convicted criminal.
For Summers, who also sits on the board of ed-tech firm Skillsoft and chairman of Santander Bank’s international advisory board, the situation could mark a wider crisis in his corporate career. For OpenAI, meanwhile, it is a test of the maturity of corporate governance – the company loses an experienced strategist from the Clinton and Obama administrations, but gains the peace of mind needed to continue to thrive in an increasingly politicised tech world.
