OpenAI Faces SEC Complaint Over Employee Whistleblower Rights

Whistleblowers have filed a complaint with the SEC against OpenAI, alleging that the company has been illegally restricting workers from speaking out about the risks of its AI technology. The complaint calls for an investigation into OpenAI's non-disclosure agreements and their impact on employee rights.

Whistleblowers have lodged a complaint with the U.S. Securities and Exchange Commission (SEC) against OpenAI, accusing the company of illegally restricting workers from discussing the risks associated with its artificial intelligence technology. The complaint requests a probe into OpenAI's non-disclosure agreements, which allegedly deter employees and investors from raising concerns with regulatory authorities.

A letter to SEC Chair Gary Gensler, representing anonymous and confidential whistleblowers, urges the agency to enforce rules against non-disclosure agreements that potentially prevent staff and investors from speaking up. The July 1 letter references a formal whistleblower complaint and was first reported by The Washington Post.

U.S. Senator Chuck Grassley's office, which shared the letter with the Associated Press, pointed out that legally protected whistleblowers provided the document. In a statement, Grassley emphasized the chilling effect of OpenAI's policies on whistleblower rights, stressing the need for changes to non-disclosure agreements to keep the federal government ahead of AI developments. OpenAI responded, noting it has already made changes to its policies to protect employee rights. The SEC did not comment on whether it would open an investigation.

(With inputs from agencies.)