In a significant move within the tech industry, Fidji Simo, the current CEO of Instacart, is set to join OpenAI as the Chief Executive Officer of Applications. The announcement was made on Thursday, May 8, 2025, by OpenAI CEO Sam Altman, who emphasized that Simo will report directly to him and will play a crucial role in managing various operational aspects of the rapidly growing artificial intelligence company.
Simo, who has been a board member at OpenAI since March 2024, will transition from her role at Instacart over the next few months and officially join OpenAI later this year. Altman highlighted Simo's unique qualifications, stating, "Applications brings together a group of existing business and operational teams responsible for how our research reaches and benefits the world, and Fidji is uniquely qualified to lead this group." He added that her appointment would allow him to focus more on research, computing, and safety systems as OpenAI continues to expand its reach.
Before her tenure at Instacart, Simo spent over a decade at Meta, where she was instrumental in launching ads on the News Feed and overseeing monetization for the Facebook app. She left Meta as the head of the Facebook app in 2021, bringing with her a wealth of experience in product management and monetization. Under her leadership, Instacart went public in 2023, breaking a significant tech IPO drought.
In a statement, Simo expressed her excitement about joining OpenAI, describing it as an "incredible privilege and responsibility." She remarked, "This organization has the potential of accelerating human potential at a pace never seen before and I am deeply committed to shaping these applications toward the public good." Simo also confirmed that she would remain as chair of the Instacart board during the transition, ensuring continuity for the company as it names her successor.
The search for Simo's replacement at Instacart is already underway, with the company indicating that a current member of its management team will take over her role as CEO. An announcement regarding her successor is expected soon.
Sam Altman, who will maintain his position as CEO of OpenAI, noted that Simo's leadership would enhance the company's ability to scale its "traditional" functions as it enters a new phase of growth. OpenAI has seen rapid expansion, becoming a global product company that serves hundreds of millions of users. Altman stated, "We have become a global product company serving hundreds of millions of users worldwide and growing very quickly. Bringing on exceptional leaders is a key part of doing that well."
OpenAI's recent valuation soared to $300 billion following a $40 billion fundraising deal led by SoftBank, further solidifying its position as one of the most valuable private companies globally. However, the company has also faced scrutiny regarding its transition from a nonprofit to a public benefit corporation, particularly from co-founder Elon Musk, who has raised concerns about prioritizing profit over AI safety. Just days before Simo's hiring, OpenAI announced it would allow its nonprofit arm to retain control amid pressures from civic leaders and ex-employees.
Simo's appointment comes at a pivotal time for OpenAI, which has been navigating a complex landscape of innovation and regulatory challenges. The company has been involved in a legal battle with Musk, who is now leading AI rival xAI. Musk's efforts to block OpenAI's transition to a for-profit model have highlighted the ongoing tensions within the AI industry.
As Simo prepares to step into her new role, she reflects on her journey at Instacart, where she played a key role in proving the company's resilience during and after the pandemic. "There were a lot of questions about whether Instacart would be just another pandemic fad," she shared in a previous interview. "And we have now proven that we not only kept the Covid gains, but grew on top of the Covid gains and grew sustainably and profitably, which is really important."
The transition to OpenAI marks a new chapter for Simo, who has been recognized for her contributions to the tech industry, including being named one of CNBC's Changemakers in 2024. Her leadership at OpenAI is expected to bring a fresh perspective to the company's operations, particularly as it seeks to enhance its applications and ensure that its technology benefits a broad audience.
In her new position, Simo will oversee critical functions such as sales, marketing, and finance, which are essential for supporting OpenAI's ambitious goals. As she steps into this leadership role, the tech world will be watching closely to see how her expertise influences OpenAI's trajectory in the increasingly competitive AI landscape.
