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Allegations of Illegal NDAs at OpenAI Spark SEC Complaint

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by Giorgi Kostiuk

a year ago


Allegations Against OpenAI

Allegations have surfaced regarding anonymous whistleblowers from the artificial intelligence company OpenAI filing a complaint with the United States Securities and Exchange Commission (SEC) over the alleged use of illegal non-disclosure agreements (NDAs). According to reports, these whistleblowers have raised concerns about the company's practices of enforcing restrictive NDAs to silence former employees from discussing safety and other matters with federal authorities.

SEC Complaint

Recently disclosed documents, exclusively obtained by the Washington Post, shed light on the whistleblowers' grievances. These documents, originating from Senator Chuck Grassley's office, highlight the complaint forwarded to the SEC. Grassley, in statements to the Post, expressed support for the whistleblowers, criticizing OpenAI's policies for potentially stifling individuals' rights to speak out. He emphasized the need for reforms in OpenAI's NDA practices.

The whistleblower letter sent to SEC Chairman Gary Gensler called for swift action to uphold whistleblower laws and comply with President Biden's directive on AI development standards. Although the executive order lacks enforcement mechanisms, it outlines the administration's stance towards ensuring the safe and responsible advancement of AI technologies.

OpenAI's Position

In response to the allegations, OpenAI attempted to distance itself from past NDA practices, without admitting any wrongdoing. A spokesperson for OpenAI, Hannah Wong, emphasized their commitment to facilitating open discussions on technology and announced changes in the company's departure procedures to eliminate non-disparagement clauses.

Despite facing legal challenges for alleged copyright infringements in training its ChatGPT system, OpenAI is forging ahead with strategic partnerships to advance its AI capabilities, including the development of a new AI model referred to as "Strawberry." The company's endeavors continue, as it navigates both legal disputes and collaborations within the technology sector.

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