OpenAI’s whistleblowers have asked the US financial watchdog to investigate non-disclosure agreements at the startup, after claiming the contracts included restrictions such as requiring employees to seek permission before contacting regulators.
Nondisclosure agreements (NDAs) typically prohibit an employee from sharing company information with outside parties, but a group of whistleblowers is arguing that OpenAI’s agreements may have led to workers being punished for raising concerns about the company with federal authorities.
San Francisco-based OpenAI is the developer of the ChatGPT chatbot and a key player in the artificial intelligence boom, which has been accompanied by expressions of concern from experts about the technology’s potentially dangerous capabilities.
“Given the well-documented potential risks of irresponsible deployment of AI, we urge the Commissioners to immediately authorize an investigation into OpenAI’s previous NDAs and review the current efforts apparently being undertaken by the company to ensure full compliance with SEC rules,” the letter to Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), said.
The letter from representatives of the whistleblowers was sent on July 1 and published by the Washington Post on Saturday after the news organization obtained it from the office of US Senator Chuck Grassley.
The letter states that a formal complaint has been filed with the SEC alleging “systematic” legal violations at the startup.
“Artificial intelligence is rapidly and dramatically changing the landscape of technology as we know it,” Grassley told Reuters, adding that “OpenAI’s policies and practices appear to have a chilling effect on whistleblowers’ right to speak and to receive appropriate compensation for their protected disclosures. “.
The letter alleges that employees were asked to sign agreements waiving their federal rights to whistleblower compensation.
The whistleblowers allege that OpenAI’s employment contracts, severance agreements and NDAs violate SEC rules.
“There is an urgent need to ensure that employees working in this technology understand that they can file complaints or address concerns with federal regulatory or law enforcement authorities,” they wrote.
The whistleblowers are calling on SEC commissioners to investigate OpenAI’s past NDAs, which they argue violate the law by requiring employees to sign “unlawfully restrictive” contracts.
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The letter added that restrictive NDAs are “particularly egregious” given the potential for advanced AI systems to threaten humanity.
It asked the SEC to take four actions: make OpenAI produce any NDAs it has issued and ensure that none of the signatories have their rights affected; remind past and present OpenAI employees that they have the right to whistleblower; fine OpenAI for any improper NDA; and order OpenAI to remedy the “chilling effect” of its past practices.
An OpenAI spokesperson said: “Our whistleblower policy protects employees’ rights to make protected disclosures.
“Furthermore, we believe that rigorous debate around this technology is essential and have already made significant changes to our launch process to remove opt-out conditions.”
The SEC has been contacted for comment.