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14 min 23 sec
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Empire of AI: Dreams and Nightmares in Sam Altman's OpenAI

Karen Hao traces how OpenAI went from a safety-first nonprofit to a $157 billion company under Sam Altman's control. She shows who paid for that rise and why the magic of AI deserves less blind trust.

Table of Content

If AI feels like magic you are simply supposed to trust, you stand where most users stand: impressed, uneasy and unsure who is in charge. In Empire of AI, technology journalist Karen Hao shows how OpenAI, founded as a nonprofit to build artificial intelligence safely for everyone, grew into a $157 billion empire run largely by one man. Her first revelation is the speed of the reversal. The lab that once held back GPT-2 over safety fears later pushed ChatGPT out in just two weeks.

Hao’s story makes one argument. At each fork, the hunger for computing power, money and market lead beat the founding promise of safety. What holds the empire up is a belief that only a chosen few can build the magic. Follow the dinners, deals and boardroom fights, and you gain a sharper way to judge the AI tools you use, the companies behind them and the people who ask for your trust.

A hotel dinner, a late billionaire and a quarrel between old friends over the future of intelligence. The promise made that night sounded noble, but it was made before anyone had counted the bills.

A nonprofit discovers it needs billions a year, and two cofounders each want to be the one in charge. The winner is decided less by money than by a single word about the other man.

Feed a machine the whole internet and it learns the internet’s ugliest habits. Someone had to clean that up by hand, and the work left marks that no product launch could erase.

The team expected a modest test that would fade within days. They set up servers for a hundred thousand people, placed small bets, and then watched the whole technology industry scramble.

A chief scientist burns a wooden effigy by a fire pit and starts to doubt the man he helped make powerful. No single incident convinces him. What does is the way the incidents line up.

A board fires its CEO over a video call and expects the matter to be settled by evening. Within a weekend, the people it answered to had turned the decision upside down.

Hao closes with a thought from Joseph Weizenbaum, one of the founders of the AI field: explain how a magic trick works, and the magic falls away. OpenAI’s value, she argues, rests on exactly such a trick, the belief that only a special group of people can build and control this technology. Each stage of the company’s rise fed that belief while hiding what the magic was made of: the scraped internet, billions in Microsoft money and workers in Kenya reading the worst of it for under $2 an hour.

Seeing the machinery changes how you use it. When an AI product dazzles you, trace who supplied the data, who cleaned it and who profits from your trust. When a company promises to put safety first, study its structure and its funding, since OpenAI’s promise lasted only until the money ran short. And when one leader seems impossible to replace, look for the pattern beneath the separate incidents.

Hao leaves the largest question open. For her, the issue is not whether Altman’s empire will fall but when, and what we will choose to build in its place.

About this book

What is this book about?

OpenAI began in 2015 as a nonprofit meant to build advanced artificial intelligence safely and for everyone's benefit. A few years later it was rushing ChatGPT to market in two weeks, its biggest backer was Microsoft, and its CEO had survived a board that tried to fire him. Journalist Karen Hao tells how that reversal happened and what it means for anyone who now relies on AI tools. Hao follows the money, the computing power and the people. There is the power struggle that pushed Elon Musk out, and the scaling doctrine that fed raw internet text into ever larger models. There are the Kenyan workers paid under $2 an hour to filter the worst of that text, and the Microsoft deal that paid for the chips. Finally there is the five-day boardroom coup that left Altman stronger than before. Readers get the inside story of the company behind ChatGPT. They also get a way to judge whether AI is putting power in their hands or concentrating it in an empire built on their data and trust.

Book Information

Rating:

Genre:

Entrepreneurship & Startups, Technology & the Future

Topics:

Artificial Intelligence, Power Dynamics, Startups

Publisher:

Penguin Random House

Language:

English

Narrator:

Julia

First published:

May 20, 2025

Pages:

496

Length:

14 min 23 sec

Get the book:

Amazon

Who it's for

  • Professionals using ChatGPT daily

    Professionals who use ChatGPT daily and want to know who controls it.

  • Founders and board members

    Founders and board members curious how a mission-driven company lost its mission.

  • Worried about AI safety

    Readers worried about AI safety who want the inside story behind the headlines.

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About the Author

Karen Hao

Karen Hao is an American journalist who reports on artificial intelligence, from research to technology ethics and AI's effects on society. She was senior AI editor at MIT Technology Review, and her work has also included helping produce the podcast In Machines We Trust and writing a newsletter called The Algorithm. She has also been a Hong Kong foreign correspondent for The Wall Street Journal, and a tech reporter and data scientist at Quartz. Before journalism she worked as an application engineer at the first startup to emerge from X Development.

Ratings & Reviews

Ratings at a glance

4.1

Overall score based on 98 ratings.

What people think

Listeners find the work extensively researched and skillfully composed, featuring a striking narrative that explores many facets of AI, particularly its effects on marginalized populations. Additionally, the book is appreciated for its engaging storytelling and readability. Nevertheless, the pacing gets a mixed response, as several listeners find it challenging to initially get into the book. The information is also criticized for being overly detailed, and one listener highlights the book's lack of impartiality.

Top reviews

Chee

Karen Hao has delivered a staggering indictment of the current AI gold rush that goes far beyond the typical Silicon Valley puff pieces. By framing OpenAI's rise as a form of modern-day colonialism, she forces the reader to look at the extraction of data and labor from the Global South. The narrative is remarkably well-written, weaving together the technical pivot of Sam Altman with the grim reality of Kenyan click-workers. It’s an uncomfortable mirror held up to an industry that claims to be "saving humanity" while exploiting it. Some might find the detail overwhelming, but the depth is necessary to prove her thesis. Frankly, it changed how I view every chatbot I interact with.

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Tim

The chapter on data labeling in Kenya was absolutely gut-wrenching. While the tech world obsesses over Sam Altman’s brief firing and rehiring, Hao reminds us that the real "intelligence" is built on the backs of low-wage workers in the Global South. This is a remarkable narrative that avoids the trap of fanboyism, focusing instead on the marginalized communities usually left in the footnotes. Truth is, we need more journalists who aren't afraid to challenge the "AI for good" marketing spin. It’s dense and requires focus, but the payoff is a much clearer understanding of the power structures behind the screen. Essential reading for the 21st century.

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Worawit

Wow, this was an eye-opener. I’ve read plenty about the Sam Altman saga, but Hao's focus on the "Empire" aspect—the energy, the water, and the human cost—is what makes this book stand out. It’s a thoroughly researched investigation that doesn't pull any punches when it comes to the ethical failures of the tech elite. The way she connects the dots between 19th-century colonialism and 21st-century data scraping is brilliant. Not gonna lie, it’s a heavy read that might leave you feeling a bit cynical about the future of technology, but that’s exactly why it’s so important right now. Five stars for the courage to speak truth to power.

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Javier

After hearing the buzz about this book, I expected a standard corporate biography, but Empire of AI is so much more than that. Karen Hao has managed to turn 300+ interviews into a cohesive, haunting narrative about the cost of progress. The readability is surprisingly high given the density of the subject matter, though I agree with others that it can feel overwhelming at times. Her critique of the "AI zoomers" versus "AI doomers" adds a necessary layer of nuance to the current debate. It’s a bold, provocative work that should be required reading for anyone using these tools today. Truly a remarkable achievement in tech journalism.

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Maja

Finally got around to finishing this, and I have complicated feelings. On one hand, Hao is an incredible storyteller who makes the complex history of OpenAI feel like a high-stakes thriller. The investigative research is clearly top-tier, especially regarding the internal rifts between figures like Ilya Sutskever and Sam Altman. However, the pacing can be a bit sluggish in the middle sections when it dives into the minutiae of environmental costs and energy consumption. I personally would have liked more on the transformer architecture itself, but I understand she’s focusing on the human cost. It’s a necessary read, even if the ideological slant is a bit heavy-handed at times.

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Pete

As someone who works in tech, I found Empire of AI to be a refreshing, albeit sobering, counter-narrative to the hype cycle. Hao’s ability to track OpenAI’s transition from a non-profit research lab to a profit-hungry powerhouse is expertly reported. I was particularly fascinated by the insights into the internal "sama" drama, even if some of the family details felt a bit unnecessary and gauche. The book does suffer from a few pacing issues—some chapters feel like long-form magazine articles that were stretched a bit too thin. Still, the core argument about resource extraction is powerful and well-supported by her extensive interviews.

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Isabella

Ever wonder what happens when a non-profit tries to save the world and ends up becoming a Microsoft-backed behemoth? Hao provides a deep dive into the ideological zeal that fuels OpenAI, painting a vivid portrait of a company caught between utopian dreams and capitalistic reality. The storytelling is engaging, and she does a great job of explaining why the "scaling laws" matter to the people at the top. I did find her skepticism of the technology itself a bit extreme; it’s hard to argue that GPT-4 is just a "stinking fart" of information. Regardless, the global perspective she brings regarding data annotation is absolutely essential for a complete picture.

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Dome

Picked this up after seeing Karen Hao on a podcast, and while the research is impressive, it’s a tough slog at times. The book is incredibly detailed—perhaps too detailed—meaning I found myself skimming through some of the more repetitive sections on environmental impacts. I appreciate the focus on the ethics of RLHF and the exploitation of labor, but the narrative often loses its momentum in a sea of anecdotes. To be fair, she covers a lot of ground that other AI books ignore, but the tone can feel a bit sanctimonious. It’s a middle-of-the-road read for me because of the pacing, despite the high-quality journalism.

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Pairot

While I appreciate the spirit of this investigation, I found the lack of technical depth disappointing. Hao spends so much time on the sociological impacts—which are important—that she barely scratches the surface of how these models actually work. It’s a bit of a missed opportunity to educate the public on the science behind the transformer architecture. Additionally, the portrait of Sam Altman felt a bit contradictory, jumping between him being a master manipulator and a confused idealist. It’s a well-written book for a general audience, but for those looking for a rigorous technical or business analysis of the AI sector, it falls somewhat short of expectations.

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Koi

Look, I wanted to like this, but the blatant lack of impartiality makes it hard to take as a serious journalistic work. Hao clearly has an axe to grind against the "tech bros," and while some of her criticisms of labor practices are valid, the book reads more like a polemic than an investigation. She dismisses the actual technical achievements of generative AI as "quaint" or "fluency illusions," which feels incredibly reductive. The constant comparisons to colonial empires felt forced and repetitive after the first hundred pages. If you're looking for a balanced take on Sam Altman or the future of AGI, you won't find it here; this is purely for the choir.

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Questions about this book

It tells how OpenAI, founded in 2015 as a nonprofit to build artificial intelligence safely for humanity, became a $157 billion company under Sam Altman. Hao covers Elon Musk’s exit, the scaling doctrine, the Kenyan workers who filtered training data, the Microsoft partnership, the rushed launch of ChatGPT and the failed 2023 attempt by OpenAI’s board to fire Altman.

According to Hao, chief scientist Ilya Sutskever and the independent board members Helen Toner, Tasha McCauley and Adam D’Angelo became worried about Altman’s lack of transparency and a pattern of manipulation, such as quietly promoting a researcher who worked under Sutskever without telling him. The board said Altman had not been consistently candid. Within five days, a staff revolt and pressure from Microsoft brought him back as CEO.

In late 2022, Altman heard that Anthropic, a rival lab started by former OpenAI staff, was close to releasing its own chatbot. Rather than wait for GPT-4, OpenAI put a chat interface on its GPT-3.5 model and launched it in two weeks as a research preview. Staff expected modest interest, but a million people signed up in five days.

It suits anyone who uses AI tools and wants to understand the company and choices behind them. Founders and board members will find a case study of how a mission can give way to money and speed. Readers concerned about AI safety, data use and labor in the Global South will find the human costs Hao documents.

Hao argues that OpenAI’s power rests on a myth that only a select group can build and control AI. Echoing Joseph Weizenbaum, she suggests the magic fades once people see how it works. The practical lesson is to ask who supplies the data, who pays the hidden costs and who benefits from your trust.

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