OpenAI Faces SEC Investigation Request by Whistleblowers Regarding Alleged Illegal NDAs

Parties representing anonymous informants from artificial intelligence company OpenAI have reportedly lodged a complaint with the United States Securities and Exchange Commission (SEC) regarding the firm’s alleged use of illegal non-disclosure agreements (NDAs).
According to documents exclusively obtained by the Washington Post, a group of whistleblowers associated with OpenAI filed the complaint in June, accusing the company of forcing former employees to sign restrictive and illegal NDAs in order to prevent them from discussing safety and other concerns with federal agents.
Illegal NDAs?
The Post, in its report, shared the documents it received, which were sent to the newspaper by Senator Chuck Grassley’s office. Grassley appeared to support the whistleblowers, stating in his comments to the Post that “OpenAI’s policies and practices seem to have a chilling effect on whistleblowers’ right to speak up,” and that “OpenAI’s nondisclosure agreements need to change.”
The document referring to the original complaint, which has not yet been publicly disclosed, was specifically addressed to SEC Chairman Gary Gensler. Throughout the filing, the urgency of the situation was emphasized, stating that the SEC needs to take “swift and aggressive steps” to enforce rules related to whistleblower laws and President Biden’s executive order directing domestic tech agencies to develop AI systems safely, securely, and in a trustworthy manner.
While the executive order from the White House lacks teeth, as it does not reference any specific law or impose penalties for non-compliance, it does outline the current administration’s stance on the matter.
OpenAI’s response
The company seems to be distancing itself from its previous practices regarding NDAs, but it did not admit any wrongdoing in its comments to the Post. OpenAI spokesperson Hannah Wong stated that OpenAI’s “whistleblower policy protects employees’ rights to make protected disclosures” and that the company believes “rigorous debate about this technology is essential,” noting that they have already made important changes to their departure process to remove terms that prohibit disparagement.
Cointelegraph reached out to OpenAI for comment, but did not receive an immediate response.
OpenAI is currently facing several lawsuits over its alleged use of copyrighted materials to train its ChatGPT system. However, the company continues to form partnerships as it reportedly progresses towards its next AI model, nicknamed “Strawberry.”
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