OpenAI Whistleblowers Ask SEC to Investigate Company's Non-Disclosure Agreements

A group of OpenAI whistleblowers have filed a complaint with the Securities and Exchange Commission (SEC), requesting an investigation into whether the ChatGPT maker's confidentiality agreements unlawfully prevent employees from speaking out about potential risks associated with its AI technologies.

In a letter addressed to SEC Chair Gary Gensler (and first obtained by the Washington Post), representing "one or more anonymous and confidential" whistleblowers, the group alleges that OpenAI's 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 references a formal complaint recently submitted to the SEC. The Washington Post was the first to report on the existence of this letter.

The whistleblowers claim 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." They argue that these practices create a chilling effect on employees' ability to report potential issues or risks associated with the company's AI technologies.

U.S. Sen. Chuck Grassley's office provided a copy of the letter to the Associated Press, noting it was submitted by legally protected whistleblowers.

"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," said Grassley, an Iowa Republican, in a written statement. "In order for the federal government to stay one step ahead of artificial intelligence, OpenAI's nondisclosure agreements must change."

OpenAI responded in a statement that its policies protect employees' rights to make protected disclosures. The company also highlighted recent updates to its confidentiality agreements, removing "nondisparagement terms" that could punish departing employees if they criticize the company after they leave.

The SEC declined to comment on whether it would open an investigation, in line with its standard practice.

This development comes amid growing scrutiny of major AI companies' research practices and increasing calls for transparency in the rapidly evolving field of artificial intelligence. It follows criticism earlier this year of OpenAI's employee exit agreement, which CEO Sam Altman addressed, saying the company was "already in the process of fixing the standard exit paperwork."

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