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Sam Altman, the CEO of ChatGPT maker, was fired by his board in November but was reinstated after days of commotion at the company. Now, a report has claimed that Altman’s internal communications at the company are under investigation by the US Securities and Exchange Commission to determine whether the company’s investors were misled during last November’s boardroom crisis.
Citing people familiar with the matter, a report by The Wall Street Journal said that the regulator has been seeking internal records from current and former OpenAI officials and directors, and sent a subpoena to the company in December.
The SEC is responsible for ensuring investors are not misled as companies and fundraisers raise capital, and enforcement actions led to orders for nearly $5 billion in compensation in fiscal year 2023.
“The regulator has been seeking internal records from current and former OpenAI officials and directors hindering its ability to exercise its responsibilities,” OpenAI said at the time in a blog post.
The investigation has been described as a predictable response to the former OpenAI board’s claim in its November statement. Reportedly, the SEC hasn’t specified any statement or communication by Altman that it has deemed misleading.
Why US probe matters
OpenAI, which is valued at more than $80 billion, has also attracted the scrutiny of antitrust regulators in the US and Europe. The company has also been under lens for investments made by Microsoft in the UK.
The UK’s Competition and Markets Authority (CMA) said in December that it wants to determine if “recent developments” have created a merger situation and if a merger could affect competition in the region.
Meanwhile, OpenAI was also sued by The New York Times for allegedly using the publication’s content to train its large language models. The Intercept, Raw Story, and AlterNet have also sued OpenAI and Microsoft, claiming that OpenAI and Microsoft intentionally removed important copyright information from training data.
Citing people familiar with the matter, a report by The Wall Street Journal said that the regulator has been seeking internal records from current and former OpenAI officials and directors, and sent a subpoena to the company in December.
The SEC is responsible for ensuring investors are not misled as companies and fundraisers raise capital, and enforcement actions led to orders for nearly $5 billion in compensation in fiscal year 2023.
“The regulator has been seeking internal records from current and former OpenAI officials and directors hindering its ability to exercise its responsibilities,” OpenAI said at the time in a blog post.
The investigation has been described as a predictable response to the former OpenAI board’s claim in its November statement. Reportedly, the SEC hasn’t specified any statement or communication by Altman that it has deemed misleading.
Why US probe matters
OpenAI, which is valued at more than $80 billion, has also attracted the scrutiny of antitrust regulators in the US and Europe. The company has also been under lens for investments made by Microsoft in the UK.
The UK’s Competition and Markets Authority (CMA) said in December that it wants to determine if “recent developments” have created a merger situation and if a merger could affect competition in the region.
Meanwhile, OpenAI was also sued by The New York Times for allegedly using the publication’s content to train its large language models. The Intercept, Raw Story, and AlterNet have also sued OpenAI and Microsoft, claiming that OpenAI and Microsoft intentionally removed important copyright information from training data.
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