The investigation is believed to stem from Altman's firing and subsequent rehiring as CEO of OpenAI, following accusations of not being consistently candid in his communications with the board and misrepresenting the views of other board members. The company is also facing legal and regulatory challenges, including a copyright infringement lawsuit from The New York Times and scrutiny from regulators in the UK and Europe over its relationship with Microsoft.
Key takeaways:
- OpenAI CEO Sam Altman is reportedly under investigation by the Securities and Exchange Commission (SEC) for potentially misleading investors during a boardroom dispute in November.
- The SEC has issued a subpoena to OpenAI executives, including Altman, seeking internal records and communications from current and former directors and officials of the company.
- The investigation is related to the SEC’s directive to enforce laws that forbid people from misleading investors, regardless of whether fundraisers are seeking capital in public or private markets.
- OpenAI, valued at $80 billion and surpassing $2 billion in annualized revenue in December, is also facing legal and regulatory challenges including a copyright infringement lawsuit from The New York Times and scrutiny from regulators in the United Kingdom and Europe over its relationship with Microsoft.