OpenAI Whistleblowers Urge SEC Probe on Restrictive NDAs

Whistleblowers have filed a complaint with the U.S. Securities and Exchange Commission (SEC) alleging that OpenAI's non-disclosure agreements (NDAs) are illegally restrictive. The complaint claims that OpenAI's employment, severance, and nondisclosure agreements prevent employees from reporting potential dangers of the company's technology to federal authorities. These agreements allegedly require employees to waive their federal rights to whistleblower compensation and mandate company consent before disclosing confidential information to regulators.

The whistleblowers argue that these practices violate SEC rules designed to protect employees' rights to report concerns without fear of retaliation. The SEC has acknowledged receipt of the complaint but has not released details regarding any potential action. OpenAI previously stated it was amending these agreements following accusations of threatening to reclaim employees' vested equity if they did not sign the NDAs. An SEC spokesperson declined to comment on the existence or status of the whistleblower submission.