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Home » OpenAI Faces SEC Investigation Request from Whistleblowers Regarding Suspected Unlawful NDAs
OpenAI Faces SEC Investigation Request from Whistleblowers Regarding Suspected Unlawful NDAs
OpenAI Faces SEC Investigation Request from Whistleblowers Regarding Suspected Unlawful NDAs

OpenAI Faces SEC Investigation Request from Whistleblowers Regarding Suspected Unlawful NDAs

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By admin on 2024-07-13 Regulations Security

Parties representing anonymous informants from OpenAI, an artificial intelligence company, have reportedly lodged a complaint with the United States Securities and Exchange Commission (SEC) regarding the company’s alleged use of illegal non-disclosure agreements (NDAs). According to documents exclusively obtained by the Washington Post, a group of whistleblowers associated with OpenAI filed the complaint in June, accusing the company of forcing former employees to sign restrictive NDAs that prevented them from discussing safety concerns with federal agents. The documents, sent by Senator Chuck Grassley’s office, support the whistleblowers’ claims. Grassley expressed support for the informants, stating that OpenAI’s policies and practices hindered the rights of whistleblowers and called for changes to the company’s NDAs. The complaint, which has not been publicly disclosed, was addressed to SEC Chairman Gary Gensler and emphasized the need for swift action to enforce whistleblower laws and comply with President Biden’s executive order on AI system development. Although the executive order lacks legal teeth, it reflects the administration’s stance on the sector. OpenAI has not admitted any wrongdoing but appears to distance itself from its past NDA practices. OpenAI spokesperson Hannah Wong stated that the company’s whistleblower policy protects employees’ rights to make protected disclosures and that they have made significant changes to their departure process to eliminate non-disparagement terms. OpenAI is currently facing multiple lawsuits related to the alleged unauthorized use of copyrighted materials in training its ChatGPT system. However, the company continues to form partnerships as it progresses towards its next AI model, nicknamed “Strawberry.” In a related development, OpenAI has partnered with a laboratory specializing in bioscience, despite its controversial history of developing atomic bombs.

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