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

Whistleblowers ask SEC to probe OpenAI's NDAs that allegedly restrict employee disclosures on safety risks, citing violations of SEC rules and employee rights.

: Whistleblowers have called on the SEC to investigate OpenAI's NDAs, which they claim illegally restrict employee disclosures on safety risks. The letter accuses OpenAI of violating SEC rules protecting employees' rights to report concerns and asks the SEC to enforce these rules. OpenAI spokesperson Hannah Wong stated the company has made changes to its agreements to protect employee rights.

Whistleblowers have asked the SEC to look into OpenAI's non-disclosure agreements (NDAs), which they allege are illegally restrictive and prevent employees from speaking out about safety risks. According to the letter obtained by The Washington Post, OpenAI's NDAs violate SEC rules designed to protect employees' rights to report their concerns to federal authorities and prevent retaliation. This request follows an official complaint filed with the SEC in June and urges swift enforcement against OpenAI's alleged misconduct.

The letter details several violations, including making employees sign agreements that didn't exempt disclosures of securities violations to the SEC and requiring company consent before sharing confidential information with authorities. Moreover, it claims that OpenAI's agreements force employees to waive compensation intended by Congress to incentivize whistleblowers and provide financial relief. OpenAI spokesperson Hannah Wong responded by noting the company's policy to protect whistleblowers' rights and highlighted recent changes to eliminate nondisparagement terms.

Despite OpenAI’s claims of reform, the whistleblowers insist on the necessity of enforcement to send a clear message to the AI and tech industry at large that employee and investor rights to report wrongdoing will be upheld. They emphasize that their request is not an attack on OpenAI or a hindrance to AI advancements but a necessary step to ensure legal protection for whistleblowers. The SEC has acknowledged the complaint, but details regarding any potential actions remain undisclosed.

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