OpenAI whistleblowers urge SEC probe over restrictive NDAs

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

The whistleblowers claim that OpenAI’s NDAs required employees to waive their federal rights to whistleblower compensation, which they argue poses risks given the potential dangers of irresponsible AI deployment.

The letter, provided by Sen. Chuck Grassley’s office, urges the SEC to investigate OpenAI’s past NDAs and review the company’s current compliance efforts. The whistleblowers also requested that the SEC impose fines on OpenAI for each improper agreement.

An SEC spokesperson stated that the agency does not comment on potential whistleblower submissions, and OpenAI has not responded to requests for comment.

Sen. Grassley emphasised the importance of protecting whistleblowers, noting that OpenAI’s policies could deter employees from speaking up about concerns.

The complaint alleges that OpenAI issued overly restrictive agreements that could penalise employees who reported concerns to federal authorities. It also claims that OpenAI required prior company consent for disclosures to federal regulators and did not exempt securities violation disclosures from non-disparagement clauses.

The letter requests the SEC to inspect all contracts containing NDAs, including employment, severance, and investor agreements.

OpenAI, known for its advanced AI chatbots, has faced safety concerns as its models grow more powerful. In May, OpenAI formed a Safety and Security Committee, led by board members including CEO Sam Altman, to oversee the training of its next AI model.

Attribution: Reuters.