OpenAI whistleblowers urged the US Financial Watchdog to investigate nondisclosure contracts at the startup. They claimed the contracts contained restrictions, such as requiring that employees seek permission before contacting regulatory agencies.
Non-disclosure Agreements (NDAs), which are typically used to prevent employees from disclosing company information to third parties, could have resulted in workers being punished for bringing concerns to the attention of federal authorities.
OpenAI, based in San Francisco, is the developer and creator of the ChatGPT bot. The company has also been at the forefront of the artificial intelligence boom.
The letter addressed to Gary Gensler (chair of the US Securities and Exchange Commission) stated: “Given that the potential risks of irresponsible AI deployment are well documented, we urge Commissioners to approve an immediate investigation into OpenAI’s previous NDAs and to review the current efforts being made by the company in order to ensure compliance with SEC regulations.”
The Washington Post published the letter on Saturday, after obtaining it from the office Chuck Grassley.
The letter states that the SEC has received a formal complaint alleging “systemic legal violations” at the startup.
“Artificial Intelligence is rapidly and drastically changing the landscape of technology, as we know it,” Grassley said to Reuters. He added that “OpenAI’s policies and practices seem to cast a calming effect on whistleblowers’ right to speak out and receive due compensation” for their protected disclosures.
The letter claims that employees were required to sign agreements waiving their federal rights of whistleblower compensation.
Whistleblowers claim that OpenAI’s employment agreements, severance contracts and NDAs violate SEC regulations.
They wrote: “There is a need to ensure employees working on these technologies understand they can address complaints or concerns to federal regulatory authorities or law enforcement agencies.”
Whistleblowers are calling on SEC commissioners investigate OpenAI’s past NDAs. They claim that the contracts were illegally restrictive and required employees to sign them.
The letter also stated that restrictive NDAs were “particularly egregious”, given the possibility of advanced AI systems posing a threat to humanity.
The SEC was urged to take four steps: OpenAI must produce all NDAs it has ever issued, and make sure that none of the signatories’ rights have been affected; past and current OpenAI employees are reminded of their right to whistleblower; OpenAI is fined for every NDA not in compliance; and OpenAI must be ordered to correct its “chilling effects” from past practices.
OpenAI’s spokesperson stated: “Our whistleblower policies protect employees’ rights to disclose protected information.”
“We have made significant changes to our departure procedure to remove non-disparagement words.”
SEC was contacted to get a comment.
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