Sam Altman has hired Fidgi Simo, the CEO of delivery startup Instacart (CART), as new CEO of Applications at OpenAI. Simo will be responsible to scale OpenAI’s “traditional” company functions within the Applications group and will report directly to Altman. Simo has been on OpenAI’s board since March 2024, and has a deep understanding of the company’s business dynamics.
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A lot has happened at the ChatGPT maker in the past couple of months. Altman’s efforts to transform OpenAI into a for-profit organization has hit a roadblock, with several oppositions, including co-founder Elon Musk’s legal injunction.
OpenAI Strengthens Leadership to Drive Growth
The “Applications” segment represents OpenAI’s existing business and operational teams responsible for delivering its research and benefits to the public, as stated by Altman. He is confident that Simo is perfectly qualified for this role, with years of experience in product management and monetization. Before joining Instacart, Simo was head of the Facebook app at Meta Platforms (META). In a post on X last night, Simo mentioned that “Joining OpenAI at this critical moment is an incredible privilege and responsibility.”
Meanwhile, Altman will continue to focus on his existing role overseeing the Research, Compute, and Applications at OpenAI. He is determined to build OpenAI into the world’s best superintelligence company, with commitment to safety. Altman informed employees about this significant change through an internal memo, which was subsequently published on the company’s blog, making the information public.
What Happens to Instacart?
Notably, Simo will continue as CEO of Instacart for the next few months, until a suitable successor is appointed and help in the smooth transition. Simo noted in her X post that the new CEO will be chosen from the current senior management team. She will continue to stay on as chair at Instacart, while joining OpenAI full-time.
Under Simo’s leadership, Instacart made headlines when it listed on the Nasdaq stock exchange in September 2023, in one of the biggest tech IPOs of the year. Simo has proven successful in keeping Instacart profitable both through the stay-home COVID-19 pandemic and beyond. Since its initial listing, CART stock has gained 52.4%.
Is Instacart Stock a Good Buy?
On TipRanks, CART stock has a Moderate Buy consensus rating based on 15 Buys and nine Hold ratings. Also, the average Instacart price target of $51.82 implies 13.3% upside potential from current levels. Year-to-date, CART stock has gained 10.4%.
