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OpenAI: Departure of Data Center Head Amid Reorganization

🤖 Models & LLM·Tom Levy·

OpenAI: Departure of Data Center Head Amid Reorganization

OpenAI: Departure of Data Center Head Amid Reorganization
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Key Takeaways
1OpenAI's IPO has been postponed to 2027 amid concerns about valuation and profitability.
2Chris Malone, head of data centers, left OpenAI last week.
3Thirteen executive departures at OpenAI were recorded in 2026.
💡Why it matters — These movements come as OpenAI aims for an IPO in 2027 and the company faces questions about its financial trajectory.

OpenAI pushes back its IPO to 2027 amid questions about its valuation and profitability. Against this backdrop, the company is reorganizing its infrastructure and has lost Chris Malone, head of data centers, after a tenure that began in March of last year. Thirteen executive departures have been recorded in 2026, including several in recent weeks, while management insists it has a strong data center team.

IPO Delayed to 2027 and Doubts About Financial Trajectory

OpenAI maintains its goal of going public, but this operation, originally planned for this year, has been postponed to 2027. The company is currently undergoing a reputation review that typically accompanies such deadlines. Concerns have emerged about a potential overvaluation of the company and the perceived gap between its profitability and the investments made in the lab. The pace of executive departures has not helped to dispel these doubts.

OpenAI Restructures Infrastructure Organization and Appoints Sachin Katti as Head

OpenAI has indicated that it recently reorganized its infrastructure organization to support the scale and pace of its work. Management claims to have a strong and experienced data center team, equipped with clear leadership and the technical expertise necessary to execute plans. According to the Wall Street Journal, this reorganization has altered the reporting structure: Chris Malone no longer reported directly to President Greg Brockman but instead reported to Vice President Sachin Katti, who has taken charge of the group. Several leaders are now overseeing the data center strategy: Uday Ruddarraju leads the team, Brent Mayo manages construction and delivery, and Spas Lazarov oversees all engineering.

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Chris Malone Departs After One Year at OpenAI Amid Stargate Project

Chris Malone, who held the position of head of data centers at OpenAI, left the company last week. He joined OpenAI in March of the previous year after nearly five years at Meta and over ten years at Google. His hiring occurred shortly after the launch of the Stargate Project, a $500 million program aimed at building data centers in the United States, supported by the Trump administration, with OpenAI, Oracle, Nvidia, SoftBank, and Microsoft identified as major partners. The reasons for his departure are not fully known.

Thirteen Executive Departures in 2026 and Key Teams Restructured

Chris Malone's departure is part of a broader trend: thirteen executive departures have been recorded in 2026, including several in the past month, affecting some of the company's highest positions. Two weeks ago, OpenAI replaced its revenue director, Denise Dresser, after about eight months in the role. Two days before the announcement of this departure, Brad Lightcap, who had spent years as Chief Operating Officer, left the company, stating he wanted to "start something new," without further details. About a month earlier, Fidji Simo, product and business lead and de facto number two who reported directly to Sam Altman, had left her position to recover from a "chronic illness," while remaining an advisor. The security and ethics teams have also evolved: in July, the head of ethics, Chloé Bakalar, departed, and it was reported last week that the preparedness team, responsible for assessing potential catastrophic risks of models, has been dissolved. Other executives have left the company following the cessation of their projects, such as Bill Peebles, who led the now-defunct AI image generator Sora. In April, the marketing director, Kate Rouch, also left, reportedly for health reasons. In light of the attention on these movements, co-founder Greg Brockman stated that the "intense spotlight" on the company means that "every departure is scrutinized in a way that it otherwise would not be."

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