Instacart CEO Fidji Simo to Lead OpenAI’s Core Applications Division After Transforming Instacart into a Public Tech Powerhouse

Fidji Simo, CEO of Instacart, is set to take on a pivotal role at OpenAI as the CEO of Applications, starting August 18th. This newly created position will have Simo overseeing at least one-third of the company and reporting directly to OpenAI CEO Sam Altman. The appointment is part of a broader reorganization announced by Altman in May, aimed at scaling and growing OpenAI’s technology applications.

In her new role, Simo will focus on product development and growth, while Altman shifts his attention more towards research, compute, and safety systems. Simo’s responsibilities will include bringing together existing business and operational teams responsible for translating OpenAI’s research into real-world benefits.

Simo expressed her excitement about AI-led healthcare breakthroughs in a memo to employees, which was also published on OpenAI’s blog. She highlighted AI’s potential in various areas, including career and life coaching, creative expression, time-saving, medical second opinions, and personalized tutoring.

Addressing the impact of major technology trends, Simo emphasized the importance of ensuring that AI leads to greater empowerment for all, rather than concentrating wealth and power among a select few. She wrote, “The choices we make now will shape whether the coming transformation leads to greater empowerment for all, or greater concentration of wealth and power for the few.”

Simo’s appointment comes at a critical juncture for OpenAI, as the company transitions from a primarily research-focused organization to one that increasingly delivers practical products and services on a global scale. Her experience in scaling tech platforms and managing large-scale commercial operations is expected to be valuable in this new phase of growth.

Prior to this appointment, Simo joined OpenAI’s board in March 2024, coinciding with CEO Sam Altman regaining his board seat following an internal investigation related to his previous ouster.

It’s worth noting that Simo will remain as CEO of Instacart through the company’s earnings in early August before transitioning to her new role at OpenAI. This move signals OpenAI’s ambition to operationalize its AI breakthroughs and make them widely accessible, leveraging Simo’s experience in scaling a successful publicly traded technology company.

The creation of the Applications division under Simo’s leadership is expected to enable OpenAI’s traditional company functions to scale as the organization enters its next growth phase. This organizational change allows Altman to focus more on long-term AI research and major strategic initiatives, while Simo drives the commercial and product-facing aspects of the business.

As OpenAI continues to expand its reach and impact in the AI industry, Simo’s appointment represents a significant step in the company’s evolution, bridging cutting-edge research with practical applications that could shape the future of AI technology and its societal impact.