Whistleblowers have called for an SEC investigation into OpenAI’s NDAs, alleging that the agreements impose illegal restrictions on employees’ ability to communicate with government regulators.
The complaint, initially filed in June, gained attention through a letter obtained by The Washington Post, which accuses OpenAI of using agreements that violate SEC rules by discouraging both employees and investors from reporting securities violations. The letter, sent by lawyers representing anonymous whistleblowers, was addressed to SEC Chair Gary Gensler and calls for enforcement against OpenAI’s severance, non-disparagement, and non-disclosure agreements.
Details of the Alleged Violations
The agreements reportedly forced employees to waive their rights to whistleblower incentives and compensation, and required them to notify the company before communicating with government regulators. The letter also asserts that OpenAI’s NDAs demanded employees sign restrictive contracts to receive employment, severance payments, and other financial considerations.
OpenAI’s Response to the Allegations
OpenAI spokesperson Hannah Wong stated that the company’s whistleblower policy protects employees’ rights to make protected disclosures and mentioned recent changes to off-boarding papers to eliminate nondisparagement terms. This response follows previous accusations that OpenAI threatened to revoke exiting employees’ equity if they didn’t sign NDAs. CEO Sam Altman had earlier apologized, stating the company was already addressing these issues.
The SEC has acknowledged the complaint but has not yet disclosed any specific actions. Whistleblowers emphasize the need for enforcement to deter similar practices in the AI and tech industries, not to hinder AI advancement.
Featured Image courtesy of ELIZABETH FRANTZ/REUTERS
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