OpenAI update: Whistleblowers ask US regulator to examine the ChatGPT maker’s NDAs with employees

OpenAI whistleblower update: The whistleblowers from artificial intelligence major OpenAI, have in a letter to the United States Securities and Exchange Commission (SEC), asked the regulator to examine the company's contracts with employees, AP reported.

In a letter to US SEC Chair Gary Gensler, whistleblowers asked the regulator to whether the ChatGPT maker has illegally restricted workers via non-disclosure agreements from speaking out about the risks of its AI technology.

The letter was sent to Gensler on July 1 by “one or more anonymous and confidential” whistleblowers. It asked the SEC to “swifty and aggresively” enforce rules against NDAs that discourage employees from raising concerns with agencies.

It also reference a formal whistleblower complaint recently filed with the SEC, which was first reported by The Washington Post.

Senator Shares Whistleblower Letter

AP had a copy of the letter, shared by US Republican Senator from Iowa Chuck Grassley's office, who told the agency it was sent by legally protected whistleblowers.

“OpenAI’s policies and practices appear to cast a chilling effect on whistleblowers’ right to speak up and receive due compensation for their protected disclosures. In order for the federal government to stay one step ahead of artificial intelligence, OpenAI’s nondisclosure agreements must change,” Grassley said, in a written statement.

On its part, OpenAI has in a statement said it protects employees' rights to make disclosures as per the law, and added that it has already moved to make changes to remove terms from contracts that suggest punishment on employees for “disparagement terms” after they leave the company.

OpenAI in May formed a Safety and Security Committee that will be led by board members, including CEO Sam Altman, as it begins training its next artificial intelligence model, Reuters reported.

The US SEC did not respond to queries, AP report added.

Apple, Microsoft ditch OpenAI board observer seat

Microsoft has ditched the board observer seat at OpenAI that has drawn regulatory scrutiny on both sides of the Atlantic, saying it was not necessary after the AI start-up's governance had improved significantly in the past eight months, another Reuters report said.

Apple, which last month announced bringing OpenAI's chatbot ChatGPT to its devices, would not take the observer role on OpenAI's board after being widely expected to do so, the Financial Times reported, citing a person with direct knowledge of the matter. Apple did not respond to a request for comment.

An OpenAI spokesperson said the company will establish a new engagement approach by hosting regular stakeholder meetings with strategic partners such as Microsoft and Apple and investors such as Thrive Capital and Khosla Ventures.

(With inputs from AP and Reuters)