Whistleblowers Allege OpenAI Muzzled Employees Over Safety Risk Disclosures, Breaching Law

Published Date: 14/07/2024

OpenAI whistleblowers allege the AI company illegally prohibited its employees from warning regulators about the grave risks its technology may pose to humanity.

"A group of whistleblowers has filed a complaint with the Securities and Exchange Commission (SEC) accusing OpenAI, a leading artificial intelligence company, of illegally prohibiting its employees from warning regulators about the grave risks its technology may pose to humanity. The whistleblowers claim that OpenAI issued overly restrictive employment, severance, and nondisclosure agreements that could have led to penalties against workers who raised concerns about OpenAI to federal regulators.

These agreements required OpenAI staff to waive their federal rights to whistleblower compensation and obtain prior consent from the company if they wished to disclose information to federal authorities. However, OpenAI did not create exemptions in its employee nondisparagement clauses for disclosing securities violations to the SEC.

The whistleblowers argue that these overly broad agreements violated long-standing federal laws and regulations meant to protect whistleblowers who wish to reveal damning information about their company anonymously and without fear of retaliation.

OpenAI responded to the allegations, stating that its whistleblower policy protects employees' rights to make protected disclosures. However, the whistleblowers' letter comes amid concerns that OpenAI is putting profit before safety in creating its technology. For instance, the company rushed out its latest AI model that fuels ChatGPT to meet a May release date set by company leaders, despite employee concerns that the company 'failed' to live up to its own security testing protocol.

Tech companies' strict confidentiality agreements have long vexed workers and regulators. During the #MeToo movement and national protests in response to the murder of George Floyd, workers warned that such legal agreements limited their ability to report sexual misconduct or racial discrimination. Regulators, meanwhile, have worried that the terms muzzle tech employees who could alert them to misconduct in the opaque tech sector, especially amid allegations that companies' algorithms promote content that undermines elections, public health, and children's safety.

The rapid advance of artificial intelligence has sharpened policymakers' concerns about the power of the tech industry, prompting a flood of calls for regulation. In the United States, AI companies are largely operating in a legal vacuum, and policymakers say they cannot effectively create new AI policies without the help of whistleblowers, who can help explain the potential threats posed by the fast-moving technology.

A copy of the letter was sent to Congress, and Sen. Chuck Grassley (R-Iowa) expressed concern that OpenAI's policies and practices appear to cast a chilling effect on whistleblowers' right to speak up and receive due compensation for their protected disclosures.

The SEC must take 'swift and aggressive' steps to address these illegal agreements, the letter says, as they might be relevant to the wider AI sector and could violate the October White House executive order that demands AI companies develop the technology safely.

  Information  OpenAI is a leading artificial intelligence company that started as a nonprofit with an altruistic mission. However, the company has faced criticism for prioritizing profit over safety in creating its technology. OpenAI is known for its ChatGPT AI model, which has raised concerns about the potential risks posed by its technology.

   The Securities and Exchange Commission (SEC) is a federal agency responsible for overseeing the securities industry and protecting investors. The SEC has a whistleblower program that provides incentives for individuals to report potential securities violations."

FAQs:

"Q: What is the whistleblower complaint against OpenAI?

A: The whistleblowers allege that OpenAI illegally prohibited its employees from warning regulators about the grave risks its technology may pose to humanity.

Q: What are the concerns about OpenAI's technology?

A: There are concerns that OpenAI's technology may pose risks to humanity, including teaching users to build bioweapons or helping hackers develop new kinds of cyberattacks.

Q: What are confidential agreements, and why are they a problem?

A: Confidential agreements are legal contracts that require employees to keep company information confidential. The problem is that they can muzzle tech employees who could alert regulators to misconduct in the opaque tech sector.

Q: What is the role of the SEC in this case?

A: The SEC is responsible for overseeing the securities industry and protecting investors. The whistleblowers have filed a complaint with the SEC, and the agency must take 'swift and aggressive' steps to address the illegal agreements.

Q: What is the significance of the October White House executive order?

A: The executive order demands AI companies develop the technology safely, and the whistleblowers' complaint alleges that OpenAI's policies and practices may violate this order."

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