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Report: SEC Probes Whether OpenAI Duped Investors

Feb 29, 2024 - pymnts.com
The U.S. Securities and Exchange Commission (SEC) is reportedly investigating artificial intelligence firm OpenAI, examining whether its investors were misled. The probe includes a review of internal communications by OpenAI CEO Sam Altman, and the SEC has requested preservation of internal documents from senior officials. The investigation follows the brief dismissal of Altman as CEO for allegedly not being "consistently candid" in his communications.

This investigation is one of several legal challenges currently facing OpenAI, which was recently valued at $80 billion. The company's relationship with Microsoft has drawn regulatory scrutiny in the UK and Europe, and it is also involved in a copyright infringement lawsuit with The New York Times. The newspaper alleges that OpenAI and Microsoft used its content without permission to develop their AI products.

Key takeaways:

  • The U.S. Securities and Exchange Commission (SEC) is reportedly investigating whether investors of artificial intelligence company OpenAI were misled, including examining internal communications by CEO Sam Altman.
  • The SEC has subpoenaed OpenAI for internal records from current and former officials and directors, and requested that some senior officials preserve internal documents.
  • The investigation follows the temporary firing of Altman as CEO due to allegations of not being "consistently candid in his communications". He was later reinstated as the company's head.
  • This investigation is one of several legal challenges facing OpenAI, which also include scrutiny over its relationship with Microsoft by UK and European regulators, and a copyright infringement lawsuit by The New York Times.
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