OpenAI has appointed Instacart CEO Fidji Simo to head its applications division, a high-profile move that signals the artificial intelligence giant’s ambitions to accelerate product development and scale its global reach.
The announcement, made late Wednesday by OpenAI CEO Sam Altman, sent ripples through both the technology and retail sectors-and led to a notable drop in Instacart’s share price in early Thursday trading.
Simo, who has led Instacart since 2021 and guided the company through its successful IPO, will transition to OpenAI in the coming months. She is set to report directly to Altman and will take on the newly created role of CEO of Applications, overseeing a broad portfolio of business and operational teams responsible for bringing OpenAI’s research to market.
Simo has served as a board member at OpenAI for the past year, giving her insight into the company’s mission and operations.
For OpenAI, the hire is a strategic play as it enters a new phase of growth. Altman emphasized that Simo’s leadership will enable him to devote more focus to research, computing, and safety-critical areas as the company advances its artificial intelligence capabilities.
The applications division will be central to OpenAI’s efforts to expand the reach and impact of products like ChatGPT, with Simo tasked to drive innovation and operational excellence.
Simo described the opportunity as a “privilege and responsibility,” highlighting her passion for AI and the potential to shape technology for the public good. She will remain as Instacart’s CEO for a transition period and will continue as Chair of the Board to support the company’s next leader.
The leadership change triggered an immediate reaction in financial markets. Instacart shares, traded as Maplebear (CART), fell 2.1% to $44.79 in premarket trading. The drop reflects investor uncertainty about the company’s future leadership, despite reassurances from Instacart that its business remains strong and that a successor will be named from its current senior management team. Instacart’s board has been engaged in succession planning and expects a smooth transition.
Simo’s departure comes as Instacart reports robust financial performance, with double-digit year-over-year growth in orders and solid profitability in the first quarter of 2025. The company also recently launched a new app, Fizz, expanding its reach in the on-demand delivery market.
OpenAI, meanwhile, continues to attract attention from investors and industry observers. The company was recently valued at $300 billion in a funding round led by SoftBank and has reaffirmed its commitment to nonprofit governance even as it transitions to a public benefit corporation structure.
As Simo prepares to take the helm of OpenAI’s applications business, the move is expected to reshape leadership dynamics in both companies and further intensify the competition in the rapidly evolving AI and digital commerce sectors.