OpenAI whistleblowers turn to SEC over constricting NDAs

July 14, 2024
Darren Parkin

INSIDERS at artificial intelligence giant OpenAI say several employees have banded together to complain to the US Securities and Exchange Commission over the company's strict non-disclosure agreements.

Whistleblowers claim they are uncomfortable at being restricted from openly discussing the risks of AI development, and have urged the SEC to launch an investigation.

Iowa Senator Chuck Grassley, who received a copy of the complaint letter, made the issue public after handing it to news agencies.

"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," the letter read.

The complaint alleges OpenAI essentially forced employees to agree to forego their federal right to compensation as a whistleblower.

The letter also calls for the SEC to impose a fine on OpenAI for each 'inappropriate NDA'.

The SEC said it would not comment on the complaint, and OpenAI is yet to respond.

Senator Grassley stressed that artificial intelligence was "rapidly and dramatically altering the landscape of technology as we know it".

He added: "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.”

In the complaints, workers claim that any wish to disclose information to regulators like the SEC would require prior consent from the company. The letter also demanded OpenAI hands over every contract containing an NDA for the SEC to inspect it.