OpenAI Whistleblowers have filed a complaint with the U.S. Securities and Exchange Commission (SEC) requesting an investigation into the company’s non-disclosure agreements (NDAs).
OpenAI whistleblowers said that OpenAI’s non-disclosure agreements (NDAs) are overly restrictive and could potentially discourage employees from reporting concerns, including potential securities violations, to federal authorities. The OpenAI whistleblowers are requesting the Securities and Exchange Commission (SEC) to investigate OpenAI’s NDAs and their potential impact on employees’ ability to report concerns.
OpenAI Whistleblowers accuse the company of using “illegally restrictive” NDAs for the following reasons:
Overly Broad Terms: The NDAs are alleged to have overly broad language that could potentially encompass a wide range of information, including potential securities violations or public safety concerns. This could deter employees from reporting such issues due to fear of legal repercussions.
Lack of Exemptions for Whistleblowing: The NDAs reportedly lack clear exemptions for employees to report potential legal violations to relevant authorities, such as the SEC. This means that even if an employee discovers illegal activity within the company, they might be discouraged from reporting it due to the NDA restrictions.
Prior Consent Requirement: The OpenAI whistleblowers claim that OpenAI’s NDAs require employees to obtain prior consent from the company before disclosing any information to federal regulators. This requirement could create a significant barrier to reporting potential wrongdoing, as it gives the company the power to block such disclosures.
Potential Retaliation: The OpenAI whistleblowers fear that speaking out about OpenAI’s practices could result in retaliation from the company, such as legal action or termination of employment. This fear is exacerbated by the restrictive nature of the NDAs, which could be used to silence employees who raise concerns.
Discouraging Internal Reporting: The restrictive NDAs could also discourage employees from reporting concerns internally within the company. If employees fear retaliation or legal action for raising issues, they might be less likely to bring them up even with internal channels, leading to a culture of silence.
Overall, the OpenAI whistleblowers argue that OpenAI’s NDAs are designed to protect the company’s interests at the expense of transparency and accountability. They believe these agreements could hinder the reporting of potential wrongdoing, creating a risky environment for both employees and the public.
This complaint raises concerns about transparency and accountability at OpenAI, especially regarding potential securities violations. The SEC investigation will likely examine the validity of the OpenAI whistleblowers claims and the potential impact of OpenAI’s NDAs on employees’ ability to report concerns.
The SEC has not yet commented on the existence or nonexistence of a possible whistleblower submission, and OpenAI has not responded to requests for comment. However, Senator Chuck Grassley, whose office received the letter from the whistleblowers, has expressed concerns about OpenAI’s policies and practices potentially creating a chilling effect on whistleblowers’ rights.
The SEC investigation will likely examine the validity of the whistleblowers’ claims and the potential impact of OpenAI’s NDAs on employees’ ability to report concerns. The outcome of this investigation could have significant implications for OpenAI and other companies using similar NDAs.