OpenAI faces allegations of violating federal whistleblower protection laws, potentially hindering employees from reporting concerns about AI risks to regulators.
The Washington Post reports that a group of whistleblowers from OpenAI have filed a formal complaint with the SEC, alleging that the company implemented policies that illegally prevented employees from alerting regulators about potential risks associated with its artificial intelligence technology. The complaint, detailed in a seven-page letter obtained exclusively by the Post, calls for an investigation into OpenAI’s practices.
The whistleblowers claim that OpenAI imposed overly restrictive employment, severance, and nondisclosure agreements on its staff. These agreements allegedly included provisions that could result in penalties for employees who raised concerns about OpenAI to federal regulators. Specifically, the letter states that OpenAI required employees to waive their federal rights to whistleblower compensation and obtain prior consent from the company before disclosing information to federal authorities.
One of the anonymous whistleblowers stated, “These contracts sent a message that ‘we don’t want … employees talking to federal regulators.’” The whistleblower further expressed concern that such practices could impede the development of safe AI technology in the public interest by shielding companies from scrutiny and dissent.
In response to these allegations, OpenAI spokesperson Hannah Wong stated, “Our whistleblower policy protects employees’ rights to make protected disclosures. Additionally, we believe rigorous debate about this technology is essential and have already made important changes to our departure process to remove nondisparagement terms.”
The complaint comes at a time of increased scrutiny of AI companies and their practices. The rapid advancement of artificial intelligence has heightened concerns among policymakers about the power of the tech industry, leading to calls for regulation. However, in the United States, AI companies largely operate without specific legal frameworks, making the role of whistleblowers crucial in informing effective policy creation.
Senator Chuck Grassley (R-IA) commented on the situation, stating, “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.”
The whistleblowers’ letter urges the SEC to take “swift and aggressive” action, suggesting that these practices might be prevalent in the wider AI sector and could violate the October 2023 White House executive order demanding safe AI development. The letter emphasizes the critical role of insiders in detecting and warning against potential dangers associated with AI technology.
Stephen Kohn, the lawyer representing the OpenAI whistleblowers, stated that the agreements threatened employees with criminal prosecutions under trade secret laws if they reported violations to federal authorities. Employees were instructed to maintain confidentiality about company information and faced “severe sanctions” without acknowledgment of their right to report such information to the government.
The whistleblowers are calling for the SEC to require OpenAI to produce all employment, severance, and investor agreements containing nondisclosure clauses for review. They also request that OpenAI notify all past and current employees of the alleged violations and inform them of their right to confidentially and anonymously report any legal violations to the SEC.
Read more at the Washington Post here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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