OTHER

OpenAI’s Key Data Center Executive Departures Continue Amid High-Profile Exits

OpenAI is witnessing another executive shakeup, particularly significant as this individual was in charge of the company’s data center strategy.

Chris Malone, who held the position of head of data centers at OpenAI, exited the organization last week, as reported by the Wall Street Journal. With nearly five years at Meta and over a decade at Google before joining OpenAI in March of last year, Malone’s tenure was notably brief.

Malone joined the company shortly after the launch of the Stargate Project, a $500 million data center initiative backed by the Trump administration aimed at establishing data centers within the United States. OpenAI is recognized as a major collaborator in this initiative, along with firms like Oracle, Nvidia, SoftBank, and Microsoft.

The reasons for Malone’s departure have not been revealed. Given the industry’s aggressive push for AI infrastructure, the role of data center strategy has become one of the most vital positions in any AI lab, making this turnover particularly surprising.

In a statement to TechCrunch regarding Malone’s departure, OpenAI indicated that it had “recently reorganized” its “infrastructure organization to better accommodate the scale and velocity of our projects.” The company underscored, “We have a strong, highly skilled data center team in place, equipped with clear leadership and the technical expertise required to implement our strategies.”

As part of this organizational change, Malone stopped reporting directly to OpenAI President Greg Brockman and shifted to report to OpenAI Vice President Sachin Katti, who now leads the team, according to the WSJ.

At present, several other executives are overseeing OpenAI’s data center strategy, including Uday Ruddarraju, who leads the company’s data center team; Brent Mayo, who is in charge of the data center build and delivery program; and Spas Lazarov, an experienced professional in the data center and energy sectors, responsible for all data center engineering.

Regardless of the reasons for Malone’s exit, he is not the only one. His departure is part of a larger trend that has seen over a dozen executive exits this year. Business Insider recently reported 13 departures in 2026, with multiple occurring just last month. Notably, those who left include some of the company’s most senior executives.

Just two weeks ago, the firm replaced its chief revenue officer, Denise Dresser, who had only been with OpenAI for around eight months. Furthermore, the company experienced the exit of Brad Lightcap, a long-time executive who served as chief operating officer for many years, just two days before Dresser’s departure was made public. Lightcap noted he would be “starting something new,” though no details about this new venture have been shared.

Approximately a month before these exits, the company also saw Fidji Simo, the de facto second-in-command (who acted as product and business chief reporting directly to CEO Sam Altman), step down to recover from a “chronic illness,” although she continues with the company in an advisory role.

Importantly, OpenAI’s safety and ethics teams have also faced significant turnover. In July, the firm lost its “head of ethics,” Chloé Bakalar, and just last week, it came to light that the preparedness team, responsible for assessing potential catastrophic risks from the company’s AI models, has been disbanded.

Some team leaders, like Bill Peebles, former head of OpenAI’s discontinued AI image generator Sora, have exited following the shutdown of their projects. Additionally, chief marketing officer Kate Rouch left the company in April for health reasons, similar to Simo’s circumstances.

Despite the ongoing departures, the remaining talent at OpenAI has sought to minimize the impact of this talent drain. Co-founder Greg Brockman recently mentioned that the heightened “spotlight” on the firm means “every departure gets scrutinized in a way that wouldn’t typically occur.”

Nevertheless, this continuing shift raises questions, particularly as OpenAI prepares for an IPO. The public listing, originally anticipated this year, has now been postponed to 2027, alongside a reputational vetting process typical prior to any forthcoming listing. Concerns have surfaced regarding the company’s valuation and whether its profitability matches the substantial investments being made.

In summary, the wave of executive departures has not alleviated these concerns.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.