Fidji Simo steps down from OpenAI No.2 role after extended medical leave

Fidji Simo, Open AI's second-in-command and head of AGI deployment, is stepping down from her full-time role after an extended medical leave, the company announced July 9, 2026. She will transition to a part-time advisory position.

Simo joined Open AI in May 2025 as CEO of Applications, a newly created role that consolidated business and product operations under her. She reported directly to CEO Sam Altman, who stepped back to focus on research, compute, and safety. Simo first disclosed a relapse of a neuroimmune condition in April 2026, when she announced she would take medical leave.

A Leadership Vacuum as Open AI Eyes an IPO

Simo's departure leaves Altman searching for a successor at a critical juncture. Open AI, most recently valued at $852 billion, is considering an initial public offering. Simo was widely seen as a candidate to take on more responsibility once the company went public. Her exit also follows a string of other executive changes: CMO Kate Rouch left in April to focus on cancer recovery, CPO Kevin Weil departed shortly after, and COO Brad Lightcap moved into a special projects role.

• Simo previously served as CEO of Instacart, leading its 2023 IPO, and spent over a decade at Meta, including running the Facebook app.
• She was responsible for growing Open AI's consumer business, but ChatGPT's growth cooled in late 2025, missing internal revenue targets.
• Open AI has since pivoted toward coding tools, an area where it trails Anthropic.
• The company launched GPT-5.6 models (Sol, Terra, Luna) and ChatGPT Work on the same day Simo's departure was announced, directly targeting Anthropic.

What Comes Next for Open AI's Executive Bench

Altman responded to Simo's announcement on X, writing: "i am really sad about this and very grateful for all fidji has done for openai... this sucks." Open AI's remaining executive team includes president and co-founder Greg Brockman, CFO Sarah Friar, and chief revenue officer Denise Dresser, a former Slack CEO who joined in December 2025. Dresser could take on a more expansive role given her experience.

Open AI has also been adjusting employee equity to retain talent. In April 2025, it shortened the vesting cliff from 12 months to six months, and in December 2025 it eliminated the cliff entirely for new hires, letting equity vest from day one. The company was projected to spend $6 billion on stock-based compensation in 2025 alone. Simo will remain as a part-time advisor, but her full-time departure creates a significant gap as Open AI races to catch Anthropic and prepare for public markets.