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It's called a conflict of interest. A smart or well advised CEO would seek approval from the board before such a deal. And maybe it was, when this specific CEO went looking for the approval or communicated it to the board, that soap opera got triggered.

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When I was reading the article it appeared like conflict of interest to my untrained eye too, though I was never on that level

It would have been so easy for them to raise that fact publicly though, and they would have massively won support.

The problem was their complete silence on what lead to Altman's ousting

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