OpenAI Whistleblowers Allege Company Enforced ‘Unlawful’ NDAs on Employees: Report

Several anonymous whistleblowers have requested an investigation from the US Securities and Exchange Commission (SEC) into OpenAI’s allegedly illegal use of NDAs.

OpenAI is facing allegations from whistleblowers who claim that the company has enforced “illegally restrictive” non-disclosure agreements (NDAs), according to a report from The Washington Post. These whistleblowers, who have remained anonymous, have written to the US Securities and Exchange Commission (SEC), urging it to take “swift and aggressive” action to address these concerns. This development follows an open letter from both current and former employees of OpenAI highlighting the need for better oversight in AI development and improved whistleblower protections.

The whistleblowers’ letter, addressed to SEC Chair Gary Gensler, accuses OpenAI of requiring its employees to sign NDAs that are excessively restrictive. These NDAs reportedly hinder employees and investors from reporting security breaches or other issues to the SEC. The letter claims that the agreements mandate obtaining consent before reaching out to federal agencies, potentially stifling important communications about the company’s practices.

In addition to the letter, the whistleblowers have submitted a formal complaint to the SEC, including supporting documents that detail the alleged infractions. The SEC has confirmed receipt of the letter, and copies have been forwarded to Congress, as reported by a spokesperson for Senator Chuck Grassley.

The whistleblowers argue that the NDAs are a significant obstacle to transparency, particularly in the context of AI development where oversight is crucial. They emphasize the need for immediate intervention to address the risks associated with AI technologies and to ensure that employees can report concerns without fear of retaliation.

It remains unclear whether the whistleblowers are current or former OpenAI employees. However, their claims underscore growing concerns about the balance between protecting proprietary information and maintaining transparency in rapidly evolving tech sectors.