OpenAI banned its staff from reporting security-related risks

A group of whistleblowers filed an OpenAI complaint with the Securities and Exchange Commission (SEC), requesting a thorough investigation into the artificial intelligence company's practices. They allege that the company prevented them from alerting regulators about the risks its technology could pose to humanity.

In a seven-page letter, the whistleblowers explained that OpenAI had imposed very strict employment and confidentiality agreements. These agreements force employees to waive their rights to receive whistleblower compensation unless they obtained the company's prior consent to inform the authorities.

The text highlights that these agreements violate federal laws designed to protect whistleblowers by allowing them to report illicit activities without fear of retaliation.

"These contracts sent a message that ‘we don’t want employees talking to federal regulators. I don’t think that AI companies can build technology that is safe and in the public interest if they shield themselves from scrutiny and dissent," said one of the whistleblowers, who preferred to remain anonymous.

In the letter, the whistleblowers called on the SEC to act swiftly and aggressively to address these illegal agreements. They also requested that the SEC require OpenAI to produce all employment and confidentiality agreements and notify all current and former employees of their rights to file complaints confidentially and anonymously.

Stephen Kohn, attorney for the whistleblowers, stressed the need for OpenAI employees to speak up: "In terms of oversight of AI, we are at the very beginning. We need employees to step forward, and we need OpenAI to be open."

In response, Hannah Wong, spokesperson for OpenAI, 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."

Growing concerns about security and transparency

The complaint comes amid concerns that OpenAI, originally founded as a nonprofit with an altruistic mission, is prioritizing profit over security.

Strict confidentiality agreements have been a sticking point as regulators fear these terms silence employees who could blow the whistle on questionable practices in the tech sector, especially in a context where algorithms can negatively influence elections, public health and child safety.

Call to action

Senator Chuck Grassley said in a statement, "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."