OpenAI Whistleblowers Call for SEC Investigation into Restrictive Non-Disclosure Agreements

OpenAI whistleblowers ask SEC to investigate alleged restrictive non-disclosure agreements

(Reuters) -OpenAI whistleblowers have filed a complaint with the U.S. Securities and Exchange Commission, calling for an investigation over the artificial intelligence company's allegedly restrictive non-disclosure agreements, according to a letter seen by Reuters. "Given the well-documented potential risks posed by the irresponsible deployment of AI, we urge the Commissioners to immediately approve an investigation into OpenAI's prior NDAs, and to review current efforts apparently being undertaken by the company to ensure full compliance with SEC rules," according to the letter, which was provided to Reuters by the office of Sen. Chuck Grassley. The AI company allegedly made employees sign agreements that required them to waive their federal rights to whistleblower compensation, according to the letter. The whistleblowers requested the SEC to fine OpenAI for each improper agreement made to the extent the agency deemed appropriate. An SEC spokesperson said in an emailed statement that it does not comment on the existence or nonexistence of a possible whistleblower submission. OpenAI did not immediately respond to requests for a comment on the letter. "Artificial intelligence is rapidly and dramatically altering the landscape of technology as we know it," said Sen. Grassley, whose office said the letter was provided by the whistleblowers. He added 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 news was first reported by the Washington Post. The whistleblowers alleged that OpenAI issued overly restrictive employment, severance and non-disclosure agreements to its employees, which could have led to penalties against workers who raised concerns about OpenAI to federal authorities. The letter also says OpenAI required employees get prior consent from the company if they wanted to disclose information to federal regulators, adding that OpenAI did not create exemptions in the employee non-disparagement clauses for disclosing securities violations to the SEC. The letter also asked the SEC to require OpenAI to produce every contract that contained a non-disclosure agreement, including employment agreements, severance agreements and investor agreements for inspection. OpenAI's chatbots with generative AI capabilities, such as engaging in human-like conversations and creating images based on text prompts, have stirred safety concerns as AI models become powerful. OpenAI in May formed a Safety and Security Committee that will be led by board members, including CEO Sam Altman, as it begins training its next artificial intelligence model. (Reporting by Chandni Shah in Bengaluru; additional reporting by Jonathan Landay in Washington; editing by Franklin Paul and Diane Craft)

OpenAI whistleblowers ask SEC to investigate alleged restrictive non-disclosure agreements

July 13 (Reuters) - OpenAI whistleblowers have filed a complaint with the U.S. Securities and Exchange Commission, calling for an investigation over the artificial intelligence company's allegedly restrictive non-disclosure agreements, according to a letter seen by Reuters. "Given the well-documented potential risks posed by the irresponsible deployment of AI, we urge the Commissioners to immediately approve an investigation into OpenAI's prior NDAs, and to review current efforts apparently being undertaken by the company to ensure full compliance with SEC rules," according to the letter, which was provided to Reuters by the office of Sen. Chuck Grassley. The AI company allegedly made employees sign agreements that required them to waive their federal rights to whistleblower compensation, according to the letter. The whistleblowers requested the SEC to fine OpenAI for each improper agreement made to the extent the agency deemed appropriate. An SEC spokesperson said in an emailed statement that it does not comment on the existence or nonexistence of a possible whistleblower submission. OpenAI did not immediately respond to requests for a comment on the letter. " Artificial intelligence is rapidly and dramatically altering the landscape of technology as we know it," said Sen. Grassley, whose office said the letter was provided by the whistleblowers. He added 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 news was first reported by the Washington Post. The whistleblowers alleged that OpenAI issued overly restrictive employment, severance and non-disclosure agreements to its employees, which could have led to penalties against workers who raised concerns about OpenAI to federal authorities. The letter also says OpenAI required employees get prior consent from the company if they wanted to disclose information to federal regulators, adding that OpenAI did not create exemptions in the employee non-disparagement clauses for disclosing securities violations to the SEC. The letter also asked the SEC to require OpenAI to produce every contract that contained a non-disclosure agreement, including employment agreements, severance agreements and investor agreements for inspection. OpenAI's chatbots with generative AI capabilities, such as engaging in human-like conversations and creating images based on text prompts, have stirred safety concerns as AI models become powerful. OpenAI in May formed a Safety and Security Committee that will be led by board members, including CEO Sam Altman, as it begins training its next artificial intelligence model. Reporting by Chandni Shah in Bengaluru; additional reporting by Jonathan Landay in Washington; editing by Franklin Paul and Diane Craft

OpenAI whistleblowers ask SEC to investigate alleged restrictive non-disclosure agreements

The AI company allegedly made employees sign agreements that required them to waive their federal rights to whistleblower compensation, according to the letter. The whistleblowers requested the SEC to fine OpenAI for each improper agreement made to the extent the agency deemed appropriate. An SEC spokesperson said in an emailed statement that it does not comment on the existence or nonexistence of a possible whistleblower submission. OpenAI did not immediately respond to requests for a comment on the letter. "Artificial intelligence is rapidly and dramatically altering the landscape of technology as we know it," said Sen. Grassley, whose office said the letter was provided by the whistleblowers. He added 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 news was first reported by the Washington Post. The whistleblowers alleged that OpenAI issued overly restrictive employment, severance and non-disclosure agreements to its employees, which could have led to penalties against workers who raised concerns about OpenAI to federal authorities. The letter also says OpenAI required employees get prior consent from the company if they wanted to disclose information to federal regulators, adding that OpenAI did not create exemptions in the employee non-disparagement clauses for disclosing securities violations to the SEC. The letter also asked the SEC to require OpenAI to produce every contract that contained a non-disclosure agreement, including employment agreements, severance agreements and investor agreements for inspection. OpenAI's chatbots with generative AI capabilities, such as engaging in human-like conversations and creating images based on text prompts, have stirred safety concerns as AI models become powerful. OpenAI in May formed a Safety and Security Committee that will be led by board members, including CEO Sam Altman, as it begins training its next artificial intelligence model. (Reporting by Chandni Shah in Bengaluru; additional reporting by Jonathan Landay in Washington; editing by Franklin Paul and Diane Craft)

Whistleblowers Accuse OpenAI Of Hindering Staff From Reporting AI Risks

OpenAI spokesperson says company's whistleblower policy safeguards employees' rights to make disclosures. A group of whistleblowers at OpenAI have filed a complaint with the Securities and Exchange Commission (SEC), alleging that the company has been obstructing its employees from reporting potential risks associated with its artificial intelligence (AI) technology to regulators. What Happened: The whistleblowers, in a seven-page letter obtained by The Washington Post, claimed that OpenAI enforced restrictive employment, severance and nondisclosure agreements on its staff. These agreements could potentially penalize employees who voiced concerns about the company to federal regulators. OpenAI, the creator of the widely-used AI tool ChatGPT, allegedly required its employees to sign agreements that included waiving their federal rights to whistleblower compensation. The whistleblowers highlighted in their letter the pressing need for employees working on AI technology to be able to raise complaints or address concerns to federal regulatory or law enforcement authorities. Also Read: OpenAI's Sam Altman Has An Estimated $2 Billion Net Worth -- And Much Of It Doesn't Come From AI OpenAI spokesperson Hannah Wong told the outlet that the company's whistleblower policy safeguards employees' rights to make disclosures. "Additionally, we believe rigorous debate about this technology is essential and have already made important changes to our departure process to remove non disparagement terms," Wong said. A whistleblower voiced concerns to the Washington Post, stating that AI companies cannot develop technology that is "safe and in the public interest if they shield themselves from scrutiny and dissent." This development follows Microsoft's recent withdrawal from OpenAI's board due to concerns about potential antitrust violations. Why It Matters: This incident underscores the importance of transparency and accountability in the rapidly evolving field of AI technology. It brings to light the need for robust whistleblower policies and protections, especially in companies developing potentially impactful technologies. The allegations against OpenAI, if proven, could have significant implications for the company and the broader AI industry. It also highlights the growing concerns about antitrust violations in the tech industry, as evidenced by Microsoft's recent departure from OpenAI's board. Now Read: Sam Altman Reveals His Go-To App -- And, Surprisingly, It's Not ChatGPT This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo: Shutterstock Market News and Data brought to you by Benzinga APIs

OpenAI whistleblowers ask SEC to investigate alleged restrictive non-disclosure agreements

(Updates sourcing throughout, adds details from letter in paragraphs 2, 9-10; adds quote from Sen. Grassley in paragraph 7) July 13 (Reuters) - OpenAI whistleblowers have filed a complaint with the U.S. Securities and Exchange Commission, calling for an investigation over the artificial intelligence company's allegedly restrictive non-disclosure agreements, according to a letter seen by Reuters. "Given the well-documented potential risks posed by the irresponsible deployment of AI, we urge the Commissioners to immediately approve an investigation into OpenAI's prior NDAs, and to review current efforts apparently being undertaken by the company to ensure full compliance with SEC rules," according to the letter, which was provided to Reuters by the office of Sen. Chuck Grassley. The AI company allegedly made employees sign agreements that required them to waive their federal rights to whistleblower compensation, according to the letter. The whistleblowers requested the SEC to fine OpenAI for each improper agreement made to the extent the agency deemed appropriate. An SEC spokesperson said in an emailed statement that it does not comment on the existence or nonexistence of a possible whistleblower submission. OpenAI did not immediately respond to requests for a comment on the letter. " Artificial intelligence is rapidly and dramatically altering the landscape of technology as we know it," said Sen. Grassley, whose office said the letter was provided by the whistleblowers. He added 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 news was first reported by the Washington Post. The whistleblowers alleged that OpenAI issued overly restrictive employment, severance and non-disclosure agreements to its employees, which could have led to penalties against workers who raised concerns about OpenAI to federal authorities. The letter also says OpenAI required employees get prior consent from the company if they wanted to disclose information to federal regulators, adding that OpenAI did not create exemptions in the employee non-disparagement clauses for disclosing securities violations to the SEC. The letter also asked the SEC to require OpenAI to produce every contract that contained a non-disclosure agreement, including employment agreements, severance agreements and investor agreements for inspection. OpenAI's chatbots with generative AI capabilities, such as engaging in human-like conversations and creating images based on text prompts, have stirred safety concerns as AI models become powerful. OpenAI in May formed a Safety and Security Committee that will be led by board members, including CEO Sam Altman, as it begins training its next artificial intelligence model. (Reporting by Chandni Shah in Bengaluru; additional reporting by Jonathan Landay in Washington; editing by Franklin Paul and Diane Craft)

OpenAI whistleblowers ask SEC to investigate alleged restrictive non-disclosure agreements

(Updates sourcing throughout, adds details from letter in paragraphs 2, 9-10; adds quote from Sen. Grassley in paragraph 7) By Chandni Shah July 13 (Reuters) - OpenAI whistleblowers have filed a complaint with the U.S. Securities and Exchange Commission, calling for an investigation over the artificial intelligence company's allegedly restrictive non-disclosure agreements, according to a letter seen by Reuters. "Given the well-documented potential risks posed by the irresponsible deployment of AI, we urge the Commissioners to immediately approve an investigation into OpenAI's prior NDAs, and to review current efforts apparently being undertaken by the company to ensure full compliance with SEC rules," according to the letter, which was provided to Reuters by the office of Sen. Chuck Grassley. The AI company allegedly made employees sign agreements that required them to waive their federal rights to whistleblower compensation, according to the letter. The whistleblowers requested the SEC to fine OpenAI for each improper agreement made to the extent the agency deemed appropriate. An SEC spokesperson said in an emailed statement that it does not comment on the existence or nonexistence of a possible whistleblower submission. OpenAI did not immediately respond to requests for a comment on the letter. " Artificial intelligence is rapidly and dramatically altering the landscape of technology as we know it," said Sen. Grassley, whose office said the letter was provided by the whistleblowers. He added 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 news was first reported by the Washington Post. The whistleblowers alleged that OpenAI issued overly restrictive employment, severance and non-disclosure agreements to its employees, which could have led to penalties against workers who raised concerns about OpenAI to federal authorities. The letter also says OpenAI required employees get prior consent from the company if they wanted to disclose information to federal regulators, adding that OpenAI did not create exemptions in the employee non-disparagement clauses for disclosing securities violations to the SEC. The letter also asked the SEC to require OpenAI to produce every contract that contained a non-disclosure agreement, including employment agreements, severance agreements and investor agreements for inspection. OpenAI's chatbots with generative AI capabilities, such as engaging in human-like conversations and creating images based on text prompts, have stirred safety concerns as AI models become powerful. OpenAI in May formed a Safety and Security Committee that will be led by board members, including CEO Sam Altman, as it begins training its next artificial intelligence model. (Reporting by Chandni Shah in Bengaluru; additional reporting by Jonathan Landay in Washington; editing by Franklin Paul and Diane Craft)

OpenAI whistleblowers ask SEC to investigate alleged restrictive non-disclosure agreements - ET Telecom

OpenAI whistleblowers have filed a complaint with the U.S. Securities and Exchange Commission, calling for an investigation over the artificial intelligence company's allegedly restrictive non-disclosure agreements, according to a letter seen by Reuters. "Given the well-documented potential risks posed by the irresponsible deployment of AI, we urge the Commissioners to immediately approve an investigation into OpenAI's prior NDAs, and to review current efforts apparently being undertaken by the company to ensure full compliance with SEC rules," according to the letter, which was provided to Reuters by the office of Sen. Chuck Grassley. The AI company allegedly made employees sign agreements that required them to waive their federal rights to whistleblower compensation, according to the letter. The whistleblowers requested the SEC to fine OpenAI for each improper agreement made to the extent the agency deemed appropriate. An SEC spokesperson said in an emailed statement that it does not comment on the existence or nonexistence of a possible whistleblower submission. OpenAI did not immediately respond to requests for a comment on the letter. "Artificial intelligence is rapidly and dramatically altering the landscape of technology as we know it," said Sen. Grassley, whose office said the letter was provided by the whistleblowers. He added 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 news was first reported by the Washington Post. The whistleblowers alleged that OpenAI issued overly restrictive employment, severance and non-disclosure agreements to its employees, which could have led to penalties against workers who raised concerns about OpenAI to federal authorities. The letter also says OpenAI required employees get prior consent from the company if they wanted to disclose information to federal regulators, adding that OpenAI did not create exemptions in the employee non-disparagement clauses for disclosing securities violations to the SEC. The letter also asked the SEC to require OpenAI to produce every contract that contained a non-disclosure agreement, including employment agreements, severance agreements and investor agreements for inspection. OpenAI's chatbots with generative AI capabilities, such as engaging in human-like conversations and creating images based on text prompts, have stirred safety concerns as AI models become powerful. OpenAI in May formed a Safety and Security Committee that will be led by board members, including CEO Sam Altman, as it begins training its next artificial intelligence model.

OpenAI whistleblowers ask SEC to investigate alleged restrictive non-disclosure agreements

OpenAI whistleblowers have filed a complaint with the U.S. Securities and Exchange Commission, calling for an investigation over the artificial intelligence company's allegedly restrictive non-disclosure agreements, according to a letter seen by Reuters. "Given the well-documented potential risks posed by the irresponsible deployment of AI, we urge the Commissioners to immediately approve an investigation into OpenAI's prior NDAs, and to review current efforts apparently being undertaken by the company to ensure full compliance with SEC rules," according to the letter, which was provided to Reuters by the office of Sen. Chuck Grassley. The AI company allegedly made employees sign agreements that required them to waive their federal rights to whistleblower compensation, according to the letter. The whistleblowers requested the SEC to fine OpenAI for each improper agreement made to the extent the agency deemed appropriate. OpenAI to launch tool to detect images created by DALL-E 3 (For top technology news of the day, subscribe to our tech newsletter Today's Cache) An SEC spokesperson said in an emailed statement that it does not comment on the existence or nonexistence of a possible whistleblower submission. OpenAI did not immediately respond to requests for a comment on the letter. Artificial intelligence is rapidly and dramatically altering the landscape of technology as we know it," said Sen. Grassley, whose office said the letter was provided by the whistleblowers. He added 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 news was first reported by the Washington Post. The whistleblowers alleged that OpenAI issued overly restrictive employment, severance and non-disclosure agreements to its employees, which could have led to penalties against workers who raised concerns about OpenAI to federal authorities. The letter also says OpenAI required employees get prior consent from the company if they wanted to disclose information to federal regulators, adding that OpenAI did not create exemptions in the employee non-disparagement clauses for disclosing securities violations to the SEC. The letter also asked the SEC to require OpenAI to produce every contract that contained a non-disclosure agreement, including employment agreements, severance agreements and investor agreements for inspection. OpenAI's chatbots with generative AI capabilities, such as engaging in human-like conversations and creating images based on text prompts, have stirred safety concerns as AI models become powerful. OpenAI in May formed a Safety and Security Committee that will be led by board members, including CEO Sam Altman, as it begins training its next artificial intelligence model. Read Comments

OpenAI whistleblowers ask SEC to investigate restrictive non-disclosure agreements, Washington Post reports

July 13 (Reuters) - OpenAI whistleblowers have filed a complaint with the U.S. Securities and Exchange Commission, calling for an investigation over the artificial intelligence company's allegedly restrictive non-disclosure agreements, the Washington Post reported on Saturday, citing a copy of the letter sent to the SEC. The whistleblowers alleged that OpenAI issued overly restrictive employment, severance and nondisclosure agreements to its employees, which could have led to penalties against workers who raised concerns about OpenAI to federal authorities, according to the newspaper. The AI company made employees sign agreements that required them to waive their federal rights to whistleblower compensation, according to the letter seen by the Washington Post. The agreements also required that employees get prior consent from the company if they wanted to disclose information to federal regulators, the newspaper said, adding that OpenAI did not create exemptions in the employee nondisparagement clauses for disclosing securities violations to the SEC. An SEC spokesperson said in an emailed statement that it does not comment on the existence or nonexistence of a possible whistleblower submission. OpenAI did not immediately respond to requests for a comment on the Washington Post report. OpenAI's chatbots with generative AI capabilities, such as engaging in human-like conversations and creating images based on text prompts, have stirred safety concerns as AI models become powerful. OpenAI in May formed a Safety and Security Committee that will be led by board members, including CEO Sam Altman, as it begins training its next artificial intelligence model. (Reporting by Chandni Shah in Bengaluru, Editing by Franklin Paul)

OpenAI whistleblowers ask SEC to investigate alleged restrictive non-disclosure agreements

OpenAI whistleblowers filed an SEC complaint about restrictive NDAs. Sen. Grassley urged an investigation into NDAs waiving whistleblower rights. SEC declined to comment. Originally reported by Washington Post. Fines requested; criticized penalties, consent, non-disparagement clauses. Inspection of contracts, severance, investor agreements requested. OpenAI's Safety and Security Committee led by CEO Sam Altman. Chandni Shah reported AI risks and generative AI.OpenAI whistleblowers have filed a complaint with the U.S. Securities and Exchange Commission, calling for an investigation over the artificial intelligence company's allegedly restrictive non-disclosure agreements, according to a letter seen by Reuters. "Given the well-documented potential risks posed by the irresponsible deployment of AI, we urge the Commissioners to immediately approve an investigation into OpenAI's prior NDAs, and to review current efforts apparently being undertaken by the company to ensure full compliance with SEC rules," according to the letter, which was provided to Reuters by the office of Sen. Chuck Grassley. The AI company allegedly made employees sign agreements that required them to waive their federal rights to whistleblower compensation, according to the letter. The whistleblowers requested the SEC to fine OpenAI for each improper agreement made to the extent the agency deemed appropriate. An SEC spokesperson said in an emailed statement that it does not comment on the existence or nonexistence of a possible whistleblower submission. OpenAI did not immediately respond to requests for a comment on the letter. "Artificial intelligence is rapidly and dramatically altering the landscape of technology as we know it," said Sen. Grassley, whose office said the letter was provided by the whistleblowers. He added 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 news was first reported by the Washington Post. The whistleblowers alleged that OpenAI issued overly restrictive employment, severance and non-disclosure agreements to its employees, which could have led to penalties against workers who raised concerns about OpenAI to federal authorities. The letter also says OpenAI required employees get prior consent from the company if they wanted to disclose information to federal regulators, adding that OpenAI did not create exemptions in the employee non-disparagement clauses for disclosing securities violations to the SEC. The letter also asked the SEC to require OpenAI to produce every contract that contained a non-disclosure agreement, including employment agreements, severance agreements and investor agreements for inspection. OpenAI's chatbots with generative AI capabilities, such as engaging in human-like conversations and creating images based on text prompts, have stirred safety concerns as AI models become powerful. OpenAI in May formed a Safety and Security Committee that will be led by board members, including CEO Sam Altman, as it begins training its next artificial intelligence model.

OpenAI Whistleblowers: Company Barred Employees From Talking to Regulators

Whistleblowers have reportedly accused OpenAI of preventing employees from warning regulators about possible artificial intelligence (AI) risks. The whistleblowers say the AI company handed down overly restrictive agreements for employment, nondisclosure and severance, the Washington Post reported Sunday (July 14), citing a letter from those whistleblowers to the Securities and Exchange Commission (SEC). That letter, obtained by the Post, says that those agreements could have meant penalties against workers who raised concerns about OpenAI to federal regulators, and required workers waive their federal rights to whistleblower compensation, in violation of federal law. "These contracts sent a message that 'we don't want ... employees talking to federal regulators,'" one of the whistleblowers told the Post. "I don't think that AI companies can build technology that is safe and in the public interest if they shield themselves from scrutiny and dissent." PYMNTS has contacted OpenAI for comment but has not yet gotten a reply. A spokesperson for the company offered this statement to to Post: "Our whistleblower policy protects employees' rights to make protected disclosures. Additionally, we believe rigorous debate about this technology is essential and have already made important changes to our departure process to remove nondisparagement terms." OpenAI's approach to safety has been the subject of some debate this year, with at least two notable employees -- AI researcher Jan Leike and policy researcher Gretchen Krueger -- saying the company was prioritizing product development over safety considerations in announcing their resignations. Another former executive, Ilya Sutskever, OpenAI's co-founder and former chief scientist, has launched Safe Superintelligence, a new AI company focused on creating a safe and powerful AI system without commercial interests. As PYMNTS wrote soon after, this has sparked some discussion over whether such a feat is even possible. "Critics of the superintelligence goal point to the current limitations of AI systems, which, despite their impressive capabilities, still struggle with tasks that require common sense reasoning and contextual understanding," that report said. "They argue that the leap from narrow AI, which excels at specific tasks, to a general intelligence that surpasses human capabilities across all domains is not merely a matter of increasing computational power or data." In addition, even some people who believe in the possibility of AI superintelligence have concerns about ensuring its safety. The creation of a superintelligent AI would necessitate advanced technical capabilities and a strong grasp of ethics, values and the potential consequences of such a system's actions.

OpenAI whistleblowers said to call upon SEC to investigate its non-disclosure agreements

OpenAI whistleblowers have asked the U.S. Securities and Exchange Commission (SEC) to "immediately approve" an investigation into the artificial intelligence (AI) startup's prior non-disclosure agreements with its employees, the Washington Post reported on Saturday, citing a seven-page letter it obtained. The whistleblowers have also alleged that OpenAI, which is backed by Microsoft (MSFT), illegally prohibited its employees from warning regulators about the risks its AI technology may pose to humanity. The Washington Post said the letter was dated July 1 and was addressed to SEC Chair Gary Gensler. OpenAI, Microsoft (MSFT) and the SEC did not immediately respond to requests for comment from Seeking Alpha. According to the letter cited by the Washington Post, the whistleblowers alleged that OpenAI's non-disclosure agreements "prohibited and discouraged both employees and investors from communicating with the SEC concerning securities violations, forced employees to waive their rights to whistleblower incentives and compensation, and required employees to notify the company of communication with government regulators." "Given the well-documented potential risks posed by the irresponsible deployment of AI, we urge the Commissioners to immediately approve an investigation into OpenAI's prior NDAs, and to review current efforts apparently being undertaken by the company to ensure full compliance with SEC Rule 21F-17(a)," the letter added, as per the Post. OpenAI shot to fame in November 2022 after launching ChatGPT, kicking off a craze in AI that has since swept up the world of technology. Microsoft (MSFT) in January last year announced a multibillion dollar investment in the AI startup.

OpenAI agreements blocked staff from revealing AI risks: Whistleblowers

Agreements barred staffers to approach federal authorities OpenAI made staff sign employee agreements that required them to waive their federal rights to whistleblower compensation. These agreements also required OpenAI staff to get prior consent from the company if they wished to disclose information to federal authorities, according to the letter obtained by The Post. The letter addressed to Gary Gensler, chair of the SEC, stated that the agreement discouraged staffers and investors from expressing to federal authorities regarding safety violations. The regulatory body has previously cleared that privately held firms that engage in such practices violate the law and are subject to fines and other enforcement actions. The letter further mentioned that given the risks associated with the advancement of AI, there's an urgent need to understand that people working on this technology can approach to federal authorities to raise complaints or address concerns. "Likewise it's critical for companies like OpenAI to understand illegal nature of their NDAs and to ensure that their workplace culture encourage employees to raise concerns even if concerns are raised with federal authorities and may impact the profitability of the company," said the letter.

OpenAI whistleblowers call for SEC probe into NDAs that kept employees from speaking out on safety risks

Whistleblowers filed an official complaint with the SEC in June, The Washington Post reports. OpenAI's NDAs are once again under scrutiny after whistleblowers penned a letter to the SEC alleging that employees were made to sign "illegally restrictive" agreements preventing them from speaking out on the potential harms of the company's technology. The letter, which was obtained and published online by , accuses OpenAI of violating SEC rules meant to protect employees' rights to report their concerns to federal authorities and prevent retaliation. It follows an official complaint that was filed with the SEC in June. In the letter, the whistleblowers ask the SEC to "take swift and aggressive steps" to enforce the rules they say OpenAI has violated. The alleged violations include making employees sign agreements "that failed to exempt disclosures of securities violations to the SEC" and requiring employees obtain consent from the company before disclosing confidential information to the authorities. The letter also says OpenAI's agreements required employees to "waive compensation that was intended by Congress to incentivize reporting and provide financial relief to whistleblowers." In a statement to the Post, OpenAI spokesperson Hannah Wong said, "Our whistleblower policy protects employees' rights to make protected disclosures," and added that the company has made "important changes" to its off-boarding papers to do away with nondisparagement terms. OpenAI previously said it was fixing these agreements after it was accused this spring of threatening to if they didn't sign NDAs on their way out. According to The Washington Post, the SEC has responded to the complaint, but no details have yet been released regarding any action it is or isn't going to take. But the whistleblowers say enforcement is of utmost importance "even if OpenAI is making reforms in light of the public disclosures of their illegal contracts." The letter says it is necessary "not as an attack on OpenAI or to hinder the advancement of AI technology, but to send the message to others in the AI space, and to the tech industry at large, that violations on the right of employees or investors to report wrongdoing will not be tolerated."

OpenAI blocked staff from airing security concerns: Whistleblowers

A group of whistleblowers at OpenAI have filed a complaint with the Securities and Exchange Commission arguing that the company blocked its staff from warning regulators about the risks its artificial intelligence technology could pose to humanity. According to a seven-page letter obtained by The Washington Post, whistleblowers said the company gave its employees restrictive employment, severance and nondisclosure agreements. Per those agreements, if employees raised concerns about the company to federal regulators, they could face penalties. OpenAI, the creator of the popular AI tool ChatGPT, made its staff sign agreements that required them to waive their federal rights to whistleblower compensation, among other restrictions for employees looking to work with federal regulators or agencies. The whistleblowers claim in their letter that "given the risks associated with the advancement of AI, there is an urgent need to ensure that employees working on this technology understand that they can raise complaints or address concerns to federal regulatory or law enforcement authorities." The Hill has reached out to OpenAI for comment, but a spokesperson told the Post that its whistleblower policy protects employees' rights to make disclosures. "Additionally, we believe rigorous debate about this technology is essential and have already made important changes to our departure process to remove non disparagement terms," said OpenAI spokesperson Hannah Wong. One of the whistleblowers spoke with the Post and said they don't think that AI companies can build technology that's "safe and in the public interest if they shield themselves from scrutiny and dissent." As AI technology companies emerge and change, there have been concerns that they are doing so for the wrong reasons. Just days ago, Microsoft relinquished its seat on the board of OpenAI, saying its participation is no longer needed as there are concerns about antitrust violations.

OpenAI Accused of Silencing Staff on AI Risks in SEC Complaint

OpenAI whistleblowers game filed a complaint with the Securities and Exchange Commission (SEC), claiming the company illegally stopped employees from warning regulators about the risks the company's technology might pose to humanity. According to The Washington Post, the group says that OpenAI "issued its employees overly restrictive employment, severance, and nondisclosure agreements that could have led to penalties against workers who raised concerns about OpenAI to federal regulators." The employees sent a seven-page letter detailing their concerns to the SEC commissioner earlier this month. In the letter, they ask the SEC to "take swift and aggressive steps" to enforce the rules the employees say OpenAI violated with the agreements. Employee agreements with the company reportedly required employees to waive their rights to whistleblower compensation. Also, they required employees to get the company's consent before disclosing any information to federal authorities. The rules violate federal laws and regulations that protect whistleblowers. A company representative told The Post its whistleblower policy "protects employees' rights to make protected disclosures." The SEC has reportedly responded to the complaint; however, details have yet to be released regarding what action, if any, it plans to make.

OpenAI whistleblowers ask SEC to investigate restrictive non-disclosure agreements, Washington Post reports

(Reuters) - OpenAI whistleblowers have filed a complaint with the U.S. Securities and Exchange Commission, calling for an investigation over the artificial intelligence company's allegedly restrictive non-disclosure agreements, the Washington Post reported on Saturday, citing a copy of the letter sent to the SEC. The whistleblowers alleged that OpenAI issued overly restrictive employment, severance and nondisclosure agreements to its employees, which could have led to penalties against workers who raised concerns about OpenAI to federal authorities, according to the newspaper.

US financial watchdog urged to investigate NDAs at OpenAI

Whistleblowers say contracts include restrictions requiring staff to seek permission before contacting regulators OpenAI whistleblowers have urged the US financial watchdog to investigate non-disclosure agreements at the startup after claiming the contracts included restrictions such as requiring employees to seek permission before contacting regulators. Non-disclosure agreements (NDAs) typically bar an employee from sharing company information with outside parties but a group of whistleblowers are arguing that OpenAI's agreements could have led to workers being punished for raising concerns about the company to federal authorities. San Francisco-based OpenAI is the developer of the ChatGPT chatbot and a key player in the artificial intelligence boom, which has been accompanied by expressions of concern from experts about the potential dangerous capabilities of the technology. "Given the well-documented potential risks posed by the irresponsible deployment of AI, we urge the Commissioners to immediately approve an investigation into OpenAI's prior NDAs, and to review current efforts apparently being undertaken by the company to ensure full compliance with SEC rules," the letter to Gary Gensler, the chair of the US Securities and Exchange Commission (SEC), said. The letter from whistleblower representatives was sent on 1 July and published by the Washington Post on Saturday after the news organisation obtained it from the office of the US senator Chuck Grassley. The letter states that a formal complaint has been filed with the SEC alleging "systemic" legal violations at the startup. The whistleblowers' names are redacted. "Artificial intelligence is rapidly and dramatically altering the landscape of technology as we know it," Senator Grassley told Reuters, adding 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". Allegations in the letter include claiming that employees have been required to sign agreements that waive their federal rights to whistleblower compensation. The whistleblowers claim OpenAI's employment contracts, severance agreements and non-disclosure agreements violate SEC rules, including requiring employees to notify the company if they communicate with regulators. "There is an urgent need to ensure that employees working on this technology understand that they can raised complaints or address concerns to federal regulatory or law enforcement authorities," they wrote. The whistleblowers call on SEC commissioners to investigate OpenAI's past non-disclosure agreements, which they argue broke the law by requiring employees to sign "illegally restrictive" contracts. The letter added that restrictive NDAs are "particularly egregious" given the potential for advanced AI systems to threaten humanity. It urged the SEC to take four actions: to make OpenAI produce every NDA it has issued and ensure none of the signatories have had their rights affected; remind past and present OpenAI employees that they have the right to whistleblow; fine OpenAI for each improper NDA; and to order OpenAI to correct the "chilling effect" of its past practices. An OpenAI spokesperson said: "Our whistleblower policy protects employees' rights to make protected disclosures. Additionally, we believe rigorous debate about this technology is essential and have already made important changes to our departure process to remove nondisparagement terms."

Whistleblowers accuse OpenAI of 'illegally restrictive' NDAs

Whistleblowers have accused OpenAI of placing illegal restrictions on how employees can communicate with government regulators, according to a letter obtained by The Washington Post. Lawyers representing anonymous whistleblowers sent the letter to Securities and Exchange Commission Chair Gary Gensler. The letter refers to a separate, formal complaint asking the SEC to investigate OpenAI's severance, non-disparagement, and non-disclosure agreements. "The agreements prohibited and discouraged both employees and investors from communicating with the SEC concerning securities violations, forced employees to waive their rights to whistleblower incentives and compensation, and required employees to notify the company of communication with government regulators," the letter says. The letter also says the SEC has been provided with evidence that "OpenAI's prior NDAs violated the law by requiring its employees to sign illegally restrictive contracts to obtain employment, severance payments, and other financial consideration." OpenAI did not immediately respond to TechCrunch's request for comment. A company spokesperson told The Post that OpenAI's whistleblower policy "protects employees' rights to make protected disclosures." A spokesperson for Senator Chuck Grassley (R-Iowa) confirmed to TechCrunch that The Post obtained a copy of the letter from Senator Grassley's office. (Copies were sent to Congress.) "Monitoring and mitigating the threats posed by AI is a part of Congress's constitutional responsibility to protect our national security, and whistleblowers will be essential to that task," Grassley said in a statement. "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." He added that if the federal government is going to stay "one step ahead of artificial intelligence, OpenAI's nondisclosure agreements must change." OpenAI's employee exit agreement was already criticized earlier this year over provisions that would reportedly have stripped former employees of their vested equity if they refused to sign the document or violated their NDAs. CEO Sam Altman subsequently said he was "very sorry," while also claiming the company had "never clawed anything back" and was "already in the process of fixing the standard exit paperwork."

OpenAI Accused of Illegally Muzzling Employee Concerns

Elon Musk drops lawsuit against OpenAI, focusing on his AI venture xAI, a direct competitor. Whistleblowers have filed a complaint with the Securities and Exchange Commission (SEC), accusing OpenAI of unlawfully restricting employees' reporting of safety concerns. In a whistleblower's letter, OpenAI is alleged to have given employees, severance, and nondisclosure agreements that are overly oppressive. These agreements supposedly contained provisions that could lead to consequences if employees complained about OpenAI to the federal regulators. The letter addressed to the SEC commissioner, was sent earlier this month, stated that OpenAI forced its employees to relinquish their federal rights to whistleblower rewards and to obtain permission from the company before reporting information to federal regulators. The whistleblowers noted that the agreements violated the federal laws that are meant to shield persons who may wish to report corporate fraud and other related vices without revealing their identities, and without fear of being fired. In addition, another whistleblower, who chose to remain unnamed, highlighted the potential negative impact of such contracts on the employees' willingness to report the risks of AI technology. OpenAI spokesperson Hannah Wong said, "Our whistleblower policy allows employees to make protected disclosures, and we think it is critical to have a serious discussion about this technology; as a result, we have adjusted our departure policies to eliminate nondisparagement clauses." The concern was voiced against the backdrop of the transformations OpenAI has gone through in recent years, specifically, concerns regarding the organization's shift from a nonprofit with the primary focus on people's well-being to a company that prioritizes profit over safety. Moreover, there are claims that OpenAI released the new model of its AI without following the required safety measures, and this was done hastily. Subsequently, this has led to concerns about the negative impact of AI, including its use in developing biological weapons or cyber attacks. Senator Chuck Grassley said, "OpenAI's policies and practices seem to deter whistleblowers from reporting and receiving proper remuneration for their protected disclosures." Grassley highlighted the role of whistleblowers in assisting the federal government in mitigating risks associated with AI. According to Coingape, OpenAI CEO Sam Altman had provided clarification on exit agreements in May amid increasing scrutiny. This comes as several employees resigned from the company, including Jan Leike, who claimed that the company was shifting from AI safety to product development. OpenAI CEO clarified that a clause in previous exit papers concerning possible equity cancellation was a mistake. In addition, he said that OpenAI has never imposed this clause and reiterated that the vested equity is safe even in case of termination of this agreement. Read Also: JPMorgan and Wells Fargo In Billions Of Bad Debts, Will Feds Step In

OpenAI illegally barred staff from airing safety risks, whistleblowers say

In a statement, Hannah Wong, a spokesperson for OpenAI said, "Our whistleblower policy protects employees' rights to make protected disclosures. Additionally, we believe rigorous debate about this technology is essential and have already made important changes to our departure process to remove nondisparagement terms." The whistleblowers' letter comes amid concerns that OpenAI, which started as a nonprofit with an altruistic mission, is putting profit before safety in creating its technology. The Post reported Friday that OpenAI 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 that it said would keep its AI safe from catastrophic harms, like teaching users to build bioweapons or helping hackers develop new kinds of cyberattacks. In a statement, OpenAI spokesperson Lindsey Held said the company "didn't cut corners on our safety process, though we recognize the launch was stressful for our teams."