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Openai Faces SEC Investigation Over Whistleblower Complaint

An OpenAI logo is shown on May 29, 2024, in Los Angeles. OpenAI whistleblowers have filed a complaint with the Securities and Exchange Commission and asked the agency to investigate whether the

A recent complaint has been filed with the Securities and Exchange Commission (SEC) by whistleblowers associated with OpenAI, a prominent artificial intelligence company. The complaint raises concerns about potential illegal restrictions placed on employees regarding discussing the risks associated with the company's AI technology, particularly ChatGPT.

The whistleblowers have urged the SEC to investigate the matter promptly and rigorously, focusing on whether non-disclosure agreements within OpenAI hinder employees or investors from voicing apprehensions to regulatory authorities. The complaint, submitted in a letter to SEC Chair Gary Gensler, highlights the need for enforcement against practices that discourage individuals from raising legitimate concerns.

Notably, a formal whistleblower complaint was recently lodged with the SEC, as reported by The Washington Post. The office of U.S. Sen. Chuck Grassley shared a copy of the letter, emphasizing that it was provided by whistleblowers who are legally protected.

In response to the allegations, Senator Grassley expressed his belief that OpenAI's policies may impede whistleblowers' rights to speak out and receive appropriate compensation for their disclosures. He stressed the importance of adapting OpenAI's nondisclosure agreements to ensure transparency and accountability in the rapidly evolving field of artificial intelligence.

OpenAI has defended its practices, stating that its policies safeguard employees' ability to make protected disclosures. The company acknowledged making revisions to eliminate terms that could penalize former employees for criticizing the organization post-departure.

As of now, the SEC has not issued any comments regarding the potential investigation into OpenAI's practices. The agency typically refrains from confirming or denying the initiation of an investigation.

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