OpenAI whistleblowers urge SEC to probe alleged restrictive NDAs

OpenAI whistleblowers have filed a complaint with the US 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.”