OpenAI whistleblowers call for SEC probe into NDAs that kept employees from speaking out on safety risks

OpenAI’s NDAs are once again under scrutiny after whistleblowers penned a letter to the SEC alleging that employees were made to sign “illegally restrictive” agreements preventing them from speaking out on the potential harms of the company’s technology. The letter, which was obtained and published online by The Washington Post, accuses OpenAI of violating SEC rules meant to protect employees’ rights to report their concerns to federal authorities and prevent retaliation. It follows an official complaint that was filed with the SEC in June.

In the letter, the whistleblowers ask the SEC to “take swift and aggressive steps” to enforce the rules they say OpenAI has violated. The alleged violations include making employees sign agreements “that failed to exempt disclosures of securities violations to the SEC” and requiring employees obtain consent from the company before disclosing confidential information to the authorities. The letter also says OpenAI’s agreements required employees to “waive compensation that was intended by Congress to incentivize reporting and provide financial relief to whistleblowers.”

In a statement to the Post, OpenAI spokesperson Hannah Wong said, “Our whistleblower policy protects employees’ rights to make protected disclosures,” and added that the company has made “important changes” to its off-boarding papers to do away with nondisparagement terms. OpenAI previously said it was fixing these agreements after it was accused this spring of threatening to claw back exiting employees’ vested equity if they didn’t sign NDAs on their way out.

According to The Washington Post, the SEC has responded to the complaint, but no details have yet been released regarding any action it is or isn’t going to take. But the whistleblowers say enforcement is of utmost importance “even if OpenAI is making reforms in light of the public disclosures of their illegal contracts.” The letter says it is necessary “not as an attack on OpenAI or to hinder the advancement of AI technology, but to send the message to others in the AI space, and to the tech industry at large, that violations on the right of employees or investors to report wrongdoing will not be tolerated.”

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