Whistleblowers have called on the US Securities and Exchange Commission (SEC) to investigate OpenAI’s use of non-disclosure agreements (NDAs). The concern is that these agreements may include restrictive clauses that require employees to seek permission before contacting regulators, potentially punishing workers for raising concerns with federal authorities.
Typically, NDAs prevent employees from sharing company information with outside parties. However, a group of whistleblowers alleges that OpenAIâs agreements might have deterred employees from reporting issues to federal authorities, which could be in violation of SEC rules. OpenAI, based in San Francisco and known for developing the ChatGPT chatbot, is a prominent player in the burgeoning field of artificial intelligence, a sector that has raised significant safety concerns among experts.
“Given the well-documented potential risks posed by the irresponsible deployment of AI, we urge the Commissioners to immediately approve an investigation into OpenAIâs prior NDAs and to review current efforts apparently being undertaken by the company to ensure full compliance with SEC rules,” stated the letter addressed to SEC Chair Gary Gensler. This letter, dated July 1, was made public by the Washington Post after it was obtained from Senator Chuck Grassley’s office.
The whistleblowers, whose names have been redacted, have filed a formal complaint with the SEC, alleging “systemic” legal violations at OpenAI. They claim that employees were required to sign agreements that waived their federal rights to whistleblower compensation and included clauses necessitating notification to the company if they communicated with regulators.
Senator Grassley emphasized the importance of protecting whistleblower rights, stating, “Artificial intelligence is rapidly and dramatically altering the landscape of technology as we know it. OpenAIâs policies and practices appear to cast a chilling effect on whistleblowersâ right to speak up and receive due compensation for their protected disclosures.”
The whistleblowers have urged the SEC to take specific actions: to require OpenAI to produce every NDA it has issued, ensure none of the signatories have had their rights affected, remind past and present employees of their whistleblower rights, fine OpenAI for each improper NDA, and rectify the “chilling effect” of its past practices.
In response, an OpenAI spokesperson stated, “Our whistleblower policy protects employeesâ rights to make protected disclosures. Additionally, 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 is yet to comment on this matter.
