SEC investigates OpenAI's internal communications for proof of misleading investors
What's the story
The US's Securities and Exchange Commission (SEC) is currently looking into internal messages from OpenAI CEO Sam Altman. This is because they have concerns that investors might have been given false information. In December, the SEC requested emails and internal documents from directors and officials at ChatGPT's parent company, as reported by the Wall Street Journal (WSJ).
History
Turmoil at OpenAI and Altman's reinstatement
Altman was removed from his position as CEO in November 2023. This was because the board claimed he wasn't "consistently candid in his communications" and expressed doubts about his leadership. However, he was back in charge less than a week later when a new board was appointed, following threats of mass resignations from OpenAI's 750 employees, who are backed by Microsoft.
Investigation
SEC does not have definite proof yet
According to the WSJ report, people with knowledge of the SEC inquiry, claimed the investigation was a "predictable response to the comments" that the board made at the time of Altman's sacking. The report also claims the SEC is yet to point to any specific communication or statement by Altman, which the agency believes might be misleading in nature.
Problems
Multiple investigations into OpenAI's operations
OpenAI, which is worth $80 billion, is currently facing multiple investigations by government agencies as well as regulators. In January, the US Federal Trade Commission began an investigation into OpenAI, Amazon, and Alphabet to study AI investments and their effects on competition within the industry. Moreover, the UK's Competition and Markets Authority announced in December that it would closely examine the relationship between OpenAI and its largest investor, Microsoft.