Should Whistleblowers Approach the SEC for Alleged Restrictive Non-Disclosure Agreements at OpenAI?

OpenAI Whistleblowers Urge SEC Investigation into Non-Disclosure Agreements

OpenAI whistleblowers have filed a complaint with the U.S. Securities and Exchange Commission (SEC), calling for an investigation into the AI company’s allegedly restrictive non-disclosure agreements, according to a letter seen by Reuters.

Call for SEC Investigation

The letter urges the SEC to investigate OpenAI’s previous NDAs and review current compliance efforts. The whistleblowers highlight potential risks associated with the irresponsible deployment of AI, stressing the importance of SEC oversight.

Allegations of Rights Waiver

The AI company allegedly required employees to waive their federal rights to whistleblower compensation through restrictive agreements. The whistleblowers requested the SEC to impose fines on OpenAI for each improper agreement.

SEC’s Stance

An SEC spokesperson declined to comment on the existence or nonexistence of a whistleblower submission.

Response from OpenAI and Tech Giants

Microsoft and Apple have reportedly withdrawn plans to join OpenAI’s board amid growing scrutiny. OpenAI did not immediately respond to requests for comment on the letter.

Sen. Grassley’s Statement

Sen. Chuck Grassley, whose office provided the letter to Reuters, emphasized 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.”

Whistleblower Allegations

The whistleblowers allege that OpenAI’s restrictive employment, severance, and non-disclosure agreements could penalize workers who raise concerns with federal authorities. They claim that OpenAI required employees to seek prior consent before disclosing information to federal regulators, with no exemptions for reporting securities violations.

Requested Actions

The letter asks the SEC to mandate OpenAI to produce all contracts containing non-disclosure agreements, including employment, severance, and investor agreements, for inspection.

Safety Concerns and New Committee

OpenAI’s chatbots, known for their generative AI capabilities, have raised safety concerns. In response, OpenAI formed a Safety and Security Committee in May, led by CEO Sam Altman and other board members, to oversee the training of its next AI model.