US financial watchdog urged to investigate NDAs at OpenAI

OpenAI whistleblowers have urged 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.

Non-disclosure agreements (NDAs) typically bar an employee from sharing company information with outside parties but a group of whistleblowers are arguing that OpenAI’s agreements could have led to workers being punished for raising concerns about the company to 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 potential dangerous capabilities of the technology.

“Given the well-documented potential risks posed by the irresponsible deployment of AI, we urge the Commissioners to immediately approve an investigation into OpenAI’s prior NDAs, and to review current efforts apparently being undertaken by the company to ensure full compliance with SEC rules,” the letter to Gary Gensler, the chair of the US Securities and Exchange Commission (SEC), said.