OpenAI has made a significant move in its leadership structure by appointing Fidji Simo, the current CEO of Instacart, to head a newly created Applications division. This announcement was made on May 8, 2025, by OpenAI CEO Sam Altman, who stated that Simo will report directly to him as the company gears up for future advancements in artificial intelligence.
The Applications division will encompass all of OpenAI's product offerings and business operations, marking a strategic shift as the company continues to expand following the success of its ChatGPT technology. Altman expressed confidence in Simo's capabilities, predicting that she would help scale the company significantly, stating, "10x (or 100x, let’s see)." This ambitious outlook underscores the critical role Simo is expected to play in OpenAI's future.
Simo, who has been instrumental in leading Instacart, will remain in her role there for the next few months before transitioning to chair of the board. In her own post on X, she expressed excitement about contributing to OpenAI's mission, calling it “one of the most important and ambitious endeavors in history.” However, specific details about which applications will fall under her purview have not yet been disclosed, nor has a start date for her new role been confirmed.
The timing of this leadership change is notable, coming just two days after OpenAI announced a dial-back of a significant restructuring plan. This plan was aimed at enhancing the company's operational efficiency but had faced scrutiny regarding the control of its nonprofit parent organization, which retains oversight of OpenAI. This move is likely to limit Altman's power, even as he continues to lead the company.
In conjunction with the appointment, Altman indicated that he would increase his focus on research, compute, and safety, areas he described as "critical as we approach superintelligence." This statement reflects OpenAI's ongoing commitment to ensuring that its advancements in AI technology are safe and beneficial.
Moreover, OpenAI has reportedly informed investors of its plans to decrease the share of revenue it allocates to Microsoft Corp. This decision comes in light of the company's commitment to maintaining control under its nonprofit parent organization, even as it seeks to expand its commercial reach and capabilities in the AI sector.
As Simo prepares to step into her new role, Instacart is also navigating its own transitions. The company recently forecasted a second-quarter core profit above Wall Street estimates, indicating strong performance that may facilitate a smooth leadership transition. Instacart is expected to announce a new CEO soon, with Simo poised to support the transition as chair of the board.
Fidji Simo's move to OpenAI is being closely watched within the tech industry, as her experience and leadership at Instacart have positioned her as a formidable force in the technology landscape. Her appointment signifies OpenAI's strategy to bolster its leadership team with individuals who have a proven track record in scaling operations and driving innovation.
As the artificial intelligence sector continues to evolve at a rapid pace, the implications of Simo's appointment could be far-reaching. OpenAI's decision to create a dedicated Applications division under her leadership suggests a strategic focus on integrating its various product offerings and enhancing the user experience across its platforms. With Simo at the helm of this new division, the company may be better positioned to respond to the growing demands of consumers and businesses alike.
In summary, OpenAI's hiring of Fidji Simo marks a pivotal moment in its journey toward expanding its influence in the AI industry. With her leadership, the company aims to navigate the complexities of AI development while ensuring that its innovations are aligned with ethical considerations and societal needs. As both OpenAI and Instacart embark on this new chapter, stakeholders will be keenly observing how these changes unfold and what they mean for the future of technology.
