On May 8, OpenAI unexpectedly announced a significant leadership change. Sam Altman, the company's co-founder and CEO, took to social media to introduce Fidji Simo, a former Meta executive and ex-CEO of Instacart, as the new CEO of OpenAI Applications, reporting directly to Altman.

Simo will conclude her responsibilities at Instacart in the coming months and officially join OpenAI later in 2025. Following her departure as Instacart's CEO, she will remain as its board chair to ensure a seamless transition for the new leadership.

Instacart, a pioneering fresh food e-commerce platform founded in 2012, has already integrated the ChatGPT API to enhance efficiency and user experience across customer service, marketing, education, and more.

This appointment marks a pivotal moment in OpenAI's push towards commercialization and organizational restructuring. In an internal communication, Altman emphasized that Simo will oversee the integration of existing business and operations teams, facilitate the translation of research findings into practical applications, and expand 'traditional corporate functions.' While specific details were not disclosed, Altman himself will continue as OpenAI's CEO, directly managing the core areas of research, computing, and applications, with a particular focus on AI security and infrastructure. This adjustment aims to harmonize technological aspirations with financial pressures.

Since the departure of former CTO Mira Murati in 2023, Altman has assumed additional daily responsibilities, and this decentralization could alleviate his management load.

According to The Information, OpenAI intends to diversify its revenue streams beyond ChatGPT subscriptions and API fees. Simo's experience in operating e-commerce and advertising businesses could prove invaluable to the company. Earlier this year, OpenAI informed potential investors that it anticipates revenue from 'free user monetization' and other products (potentially including advertising or affiliate links) to grow from zero to $25 billion by 2029, accounting for one-fifth of its total revenue.

Simo's expertise in leading Meta's mobile advertising system and expanding e-commerce advertising at Instacart is seen as crucial for bolstering OpenAI's commercialization capabilities.

On May 5, OpenAI announced its decision to abandon plans to become a fully for-profit entity, opting instead to maintain control under a nonprofit organization while transitioning to a public benefit corporation. The appointment of Fidji Simo indicates that OpenAI has not entirely abandoned its commercialization strategy.

Simo, born into a fishing family in Fiji, ascended to Silicon Valley elite status with academic credentials from HEC Paris and UCLA, earning accolades such as 'Most Influential Woman' by Fortune. In 2011, she joined Meta and subsequently spearheaded the evolution of Facebook's core functions, launching products like News Feed and Facebook Live, and establishing the mobile advertising system. After taking the helm at Instacart in 2021, she guided the company through its Nasdaq IPO in 2023, breaking a 20-year drought in technology company listings.

Simo faces the challenge of striking a balance between technological idealism and business realities—not only exploring revenue streams beyond subscriptions and APIs (like advertising and e-commerce synergies) but also upholding OpenAI's 'non-profit original intention.' Additionally, she must confront the escalating costs of computation and compete with tech giants such as Google and Microsoft.