Concerns Over OpenAI's NDAs Emerge, Whistleblowers Demand SEC Probe

Published Date: 14/07/2024

OpenAI, ChatGPT, AI, Whistleblowers, SEC Investigation

"OpenAI, the artificial intelligence company behind the popular ChatGPT, is facing scrutiny over its allegedly restrictive non-disclosure agreements (NDAs). Whistleblowers have filed a complaint with the U.S. Securities and Exchange Commission (SEC), calling for an investigation into the matter.

According to a report by the Washington Post, the whistleblowers claim that OpenAI's employment, severance, and nondisclosure agreements are overly restrictive and could have led to penalties against workers who raised concerns about the company to federal authorities.

The agreements allegedly require employees to waive their federal rights to whistleblower compensation and obtain prior consent from the company before disclosing information to federal regulators. Furthermore, the employee nondisparagement clauses do not exempt disclosures of securities violations to the SEC.

An SEC spokesperson stated that the commission does not comment on the existence or nonexistence of a possible whistleblower submission. OpenAI did not immediately respond to requests for a comment on the report.

The allegations come as OpenAI's chatbots, which are powered by generative AI capabilities, have raised safety concerns due to their increasing power and ability to engage in human-like conversations and create images based on text prompts.

In response to these concerns, OpenAI formed a Safety and Security Committee in May, which will be led by board members, including CEO Sam Altman, as the company begins training its next artificial intelligence model.

The investigation into OpenAI's NDAs could have significant implications for the company and the broader tech industry, which has faced criticism over its handling of employee whistleblower complaints.

  Information 

OpenAI is a non-profit artificial intelligence research organization founded in 2015 by Elon Musk, Sam Altman, and others. The company is headquartered in San Francisco and has developed several AI models, including ChatGPT and DALL-E.

The U.S. Securities and Exchange Commission (SEC) is a federal agency responsible for overseeing the securities industry and protecting investors. The SEC has the authority to investigate and enforce laws related to securities fraud and other violations."

FAQs:

"Q: What is the reason behind the whistleblowers' complaint against OpenAI?

A: The whistleblowers claim that OpenAI's NDAs are overly restrictive and could have led to penalties against workers who raised concerns about the company to federal authorities.

Q: What is the purpose of the Safety and Security Committee formed by OpenAI?

A: The committee will be led by board members, including CEO Sam Altman, and will focus on ensuring the safety and security of OpenAI's AI models as it begins training its next artificial intelligence model.

Q: What is the significance of the investigation into OpenAI's NDAs?

A: The investigation could have significant implications for OpenAI and the broader tech industry, which has faced criticism over its handling of employee whistleblower complaints.

Q: What is OpenAI's response to the whistleblowers' complaint?

A: OpenAI did not immediately respond to requests for a comment on the report.

Q: What is the role of the U.S. Securities and Exchange Commission (SEC) in this matter?

A: The SEC has the authority to investigate and enforce laws related to securities fraud and other violations, and will likely investigate the whistleblowers' complaint against OpenAI."

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