This is very concerning as stated, but I've had enough experience with journalists misrepresenting situations that I have personal information of that I'm at least taking this with a big grain of salt.
I'm not ruling out that this is basically a fair and accurate portrayal of events, but it is also plausible that this is an exaggerated version of a more tame series of events, or even that this never happened at all.
I think the most interesting part of the piece is the secondhand confirmation that Altman was pushed out of YC for (basically) dishonesty:
By 2018, several Y.C. partners were so frustrated with Altman’s behavior that they approached Graham to complain. Graham and Jessica Livingston, his wife and a Y.C. founder, apparently had a frank conversation with Altman. Afterward, Graham started telling people that although Altman had agreed to leave the company, he was resisting in practice. Altman told some Y.C. partners that he would resign as president but become chairman instead. In May, 2019, a blog post announcing that Y.C. had a new president came with an asterisk: “Sam is transitioning to Chairman of YC.” A few months later, the post was edited to read “Sam Altman stepped away from any formal position at YC”; after that, the phrase was removed entirely. Nevertheless, as recently as 2021, a Securities and Exchange Commission filing listed Altman as the chairman of Y Combinator. (Altman says that he wasn’t aware of this until much later.)
Altman has maintained over the years, both in public and in recent depositions, that he was never fired from Y.C., and he told us that he did not resist leaving. Graham has tweeted that “we didn’t want him to leave, just to choose” between Y.C. and OpenAI. In a statement, Graham told us, “We didn’t have the legal power to fire anyone. All we could do was apply moral pressure.” In private, though, he has been unambiguous that Altman was removed because of Y.C. partners’ mistrust. This account of Altman’s time at Y Combinator is based on discussions with several Y.C. founders and partners, in addition to contemporaneous materials, all of which indicate that the parting was not entirely mutual. On one occasion, Graham told Y.C. colleagues that, prior to his removal, “Sam had been lying to us all the time.”
Certainly you can do a lot with selective quotations, such that "Sam had been lying to us all the time" might not mean exactly what it sounds like. But given Paul Graham's caginess in previous statements on the subject, as well as all of the other available information, I think the correct update to make here is to reduce your trust in Paul Graham as someone who reliably communicates in a way that leads you believe true things. It seems like the only sense in which they (maybe) did not fire Sam is that they couldn't legally fire him (somehow), they merely employed all other means at their disposal to get him to leave.
One excerpt stuck out for me – on Brockman’s idea to play China, Russia, and other world powers against each other: