Instacart CEO Fidji Simo to join OpenAI as head of applications

Instacart head Fidji Simo will step down to join OpenAI as its chief of applications, CEO and co-founder Sam Altman said on Thursday, adding she will report to him and that he will remain head of the Microsoft-backed ChatGPT maker.

The announcement comes two days after OpenAI dialed back a significant restructuring plan, with its nonprofit parent retaining control in a move that is likely to limit Altman's power.

Simo, who joined OpenAI's board last year, will move from her role at Instacart in the coming months and start her new job later this year, the artificial intelligence company said in a blog post late Wednesday.

Instacart will name a new CEO soon, and Simo will stay on as Chair to support the transition, she said in an email to employees.

"Today's announcement is not a reflection of any changes in our business or operations," Instacart, which forecast second-quarter core profit above Wall Street estimates this month, said in a statement to Reuters on Thursday.