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SEC looking into if OpenAI CEO Altman misled investors

SEC investigated internal communications sent by OpenAI chief Sam Altman

The Securities and Exchange Commission is reportedly investigating internal communications sent by OpenAI chief Sam Altman as part of a probe into whether the tech whiz misled investors.

Subpoena Sent to OpenAI in December

The federal regulator sent a subpoena to the ChatGPT-maker in December, seeking internal records from current and former OpenAI officials and directors, according to the Wall Street Journal. The move followed the former OpenAI board’s decision in November to fire Altman as CEO and oust him from the board.

Allegations of Misleading Investors

The board of the non-profit startup at the time said it “concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities.” The report added that the SEC has not pointed to any specific statement or communication by Altman that it has deemed misleading, citing one source.

SEC Investigation

SEC officials in New York are spearheading the effort, per The Journal, which has asked OpenAI executives to preserve the company’s internal communications. Some sources described the investigation as a predictable response to the former board’s claim in its November statement.

Response from SEC and OpenAI

An SEC spokesperson told The Post that the agency “does not comment on the existence or nonexistence of a possible investigation.” Representatives from OpenAI did not immediately respond to The Post’s request for comment.

Changes in Leadership at OpenAI

Altman, 38, was brought back as OpenAI CEO less than two weeks after his resignation as part of a deal that eliminated the members of the previous five-member board. Instead, former Twitter chairman Bret Taylor, former Treasury Secretary Larry Summers, and Quora CEO Adam D’Angelo were appointed to a new nine-member board in November.

Recent Developments at OpenAI

The probe comes as Altman is reportedly in talks to raise billions of dollars for a chip venture. OpenAI has also recently completed a deal that values the Microsoft-backed startup at $80 billion or more. The company would sell existing shares in a public bid for stockholders to sell their stock led by Josh Kushner’s firm Thrive Capital.

Despite the controversy, OpenAI has continued to roll out new technology. Its latest innovation, called Sora, can produce high-caliber video in response to simple text queries, showcasing the company’s deep understanding of language.

Leah Sirama
Leah Sirama
Leah Sirama, a lifelong enthusiast of Artificial Intelligence, has been exploring technology and the digital realm since childhood. Known for his creative thinking, he's dedicated to improving AI experiences for all, making him a respected figure in the field. His passion, curiosity, and creativity drive advancements in the AI world.
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