🤖 Search 5,000+ AI tools Ask our bot for help →

Discover the latest tools and trends in AI 🔮

Join 50,000+ subscribers including Amazon, Apple, Google, and Microsoft employees reading our free newsletter.

[email protected] Subscribe

SEC Investigates OpenAI Over Alleged Investor Deception

SEC Investigates OpenAI Over Alleged Investor Deception
SEC Investigates OpenAI Over Alleged Investor Deception

Artificial Intelligence (AI) heavyweight OpenAI faces a Securities and Exchange Commission (SEC) probe concerning potential investment misinformation.

The investigation targets CEO Sam Altman's transparency with investors, probing the internal records from OpenAI's leadership. The impetus—a subpoena issued in December—followed a brief removal of Altman from his CEO position over claims he was not "consistently candid." Despite restored leadership, the SEC's New York office continues to dive into OpenAI's executive communications.

This scrutiny aligns with SEC rules against deceptive investment practices and forms part of a broader squeeze on OpenAI's corporate activities, as authorities in the UK and Europe examine its operations with global tech giant Microsoft. Concurrently, OpenAI confronts a legal tussle with The New York Times over alleged copyright violations linked to the development of their AI technology.

As regulators intensify their gaze on AI firms like OpenAI, this SEC inquiry exemplifies the growing demand for transparency and ethical conduct in the surging tech industry.

Comments