OpenAI's AGI deployment chief steps down, citing health issues
What's the story
Fidji Simo, the No. 2 executive at OpenAI, is stepping down from her full-time role and transition to a part-time advisory position instead. The decision comes as Simo's medical leave has proven longer and more challenging than expected. Simo joined OpenAI in May 2025 as CEO of Applications, a newly created position reporting directly to company's CEO Sam Altman. Her title was later changed from CEO of Applications to CEO of AGI deployment.
Health concerns
Health issues and previous roles
Simo first revealed her health issues in April, announcing a relapse of a neuroimmune condition. The same memo also announced COO Brad Lightcap's new "special projects" role and CMO Kate Rouch's departure to focus on cancer recovery. Kevin Weil has also left the company since then. Prior to joining OpenAI, Simo was the CEO of Instacart from 2021 and led IPO in 2023. She had also spent over a decade at Meta, where she headed Facebook app among other roles.
Leadership vacuum
Implications of Simo's departure
Simo's permanent exit leaves Altman looking for a successor as OpenAI considers an IPO and tries to catch up with Anthropic. She was seen as a potential candidate for more responsibility after the company's public offering. Simo mainly focused on expanding OpenAI's consumer business but missed internal revenue targets late last year, prompting the company to focus more on coding tools.
Team dynamics
Potential successor to Simo
Along with Altman, Lightcap, Friar, and co-founder Greg Brockman, OpenAI's executive team also includes Denise Dresser. She joined in December as chief revenue officer overseeing global revenue strategy across enterprise and customer success. Given her previous experience as CEO of Slack for two years and a 14-year stint at its parent company Salesforce, it wouldn't be surprising if Dresser takes on a more expansive role.
Equity changes
OpenAI's changing approach to employee equity
Simo's departure also comes against the backdrop of OpenAI's changing approach to employee equity. In April last year, the company reduced its vesting cliff from 12 months to six. Then in December, it removed the cliff altogether for new hires, allowing equity to start vesting from day one. The move was aimed at letting employees "take risks" without worrying about losing equity if let go early amid an escalating AI talent war.
Twitter Post
Simo's post
Today, I shared with the OpenAI team that I have decided to leave my full-time role at OpenAI and transition to being a part-time advisor.
— Fidji Simo (@fidjissimo) July 9, 2026
Three months ago, I had to go on medical leave after a severe exacerbation of a chronic illness I’ve lived with for seven years. During that…