SEC is investigating OpenAI for defrauding investors

As discussions unfold, the U.S. Securities and Exchange Commission (SEC) is investigating OpenAI, looking into whether investors were misled during a heated debate over governance last year, the Wall Street Journal reports. The regulator is examining internal correspondence from the head of the executive committee, Sam Altman, regarding his dismissal in November. DiscussSEC is investigating OpenAI for deceiving investors


SEC sent a subpoena to the company in December to court and asked senior OpenAI executives to preserve internal documents. Altman agreed to an internal investigation to restore his position. The investigation may not lead to the identification of violations on the part of the parties involved in the process.

Disputes surrounding the funding of an external chip project, as well as a conflict with former board member Helen Toner over a scientific article critical of the company, caused the loss trust in Altman. The OpenAI investigation is being led by lawyers from the firm WilmerHale.