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OpenAI Accused of Using Illegal NDAs to Silence Employees

Key Takeaways

  • Whistleblowers from OpenAI filed a complaint with the SEC, alleging restrictive NDAs to silence employees from sharing safety concerns;
  • Senator Chuck Grassley supports the whistleblowers, urging the SEC to enforce rules and protect employees' rights;
  • OpenAI claims to have revised its policies to protect whistleblowers.
OpenAI Accused of Using Illegal NDAs to Silence Employees

Representatives of anonymous whistleblowers from the artificial intelligence (AI) company OpenAI have filed a formal complaint with the US Securities and Exchange Commission (SEC).

The complaint alleges that OpenAI required former employees to sign restrictive non-disclosure agreements (NDAs) to silence them from sharing safety concerns and other issues with federal authorities.

According to a report from the Washington Post, the whistleblowers submitted their complaint in June, claiming that OpenAI's NDAs were excessively restrictive and illegal.

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A letter addressing these concerns was also sent to SEC Chairman Gary Gensler and Congress, with Senator Chuck Grassley's office providing a copy to the Washington Post. Grassley supported the whistleblowers, emphasizing the need for the NDAs to change to protect employees' rights to report wrongdoing.

The letter urges the SEC to enforce rules and ensure compliance in the AI sector, as required by the Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence. The order calls for a collective effort from the government, private sector, academia, and civil society to ensure AI safety.

In response to the allegations, OpenAI has stated that it has made changes to its policies. Hannah Wong, a spokesperson for OpenAI, mentioned that the company's whistleblower policy protects employees' rights to make protected disclosures. She said:

<We believe> rigorous debate about this technology is essential and have already made important changes to our departure process to remove nondisparagement terms.

The SEC's decision on whether to investigate OpenAI could have significant implications for the company and the broader AI industry. Ensuring that employee rights are protected while fostering innovation in AI technology remains a critical balance for regulators and companies.

In other news, OpenAI has recently announced its collaboration with Los Alamos National Laboratory to explore the potential of AI in bioscience research.

Aaron S. , Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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