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Sam Altman, the head of artificial intelligence firm OpenAI, has been ousted by the company's board, which said it had lost confidence in his ability to lead the company.
The board said Mr Altman had not been "consistently candid with his communications", hindering its ability to exercise its responsibilities.
Mr Altman co-founded the firm.
The maker of the ChatGPT bot, OpenAI was behind a wave of excitement about artificial intelligence.
Mr Altman had become a spokesman of sorts for the burgeoning industry, appearing before Congress this year to testify about new rules for artificial intelligence.
The announcement of his departure sent shockwaves through the sector.
On social media, former Google boss Eric Schmidt called Mr Altman "a hero of mine" and said that he had "changed our collective world forever".
"I can't wait to see what he does next. I, and billions of people, will benefit from his future work- it's going to be simply incredible," he wrote.
OpenAI was launched by Mr Altman and several others in 2015 as a non-profit.
It is now backed by Microsoft, which has invested billions. Just weeks ago, the firm was reportedly in talks to sell shares in the company to investors at a price that would value it at more than $80bn (£64bn).