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Sam Altman’s OpenAI Faces US SEC Scrutiny Over Investor Misrepresentation – Crypto News

Published

2 years ago

February 29, 2024

Dripp

Amid a whirlwind of changes and controversies, Sam Altman’s OpenAI, the renowned artificial intelligence (AI) company, finds itself under the spotlight once again. This time, it’s facing a legal hit from the Securities and Exchange Commission (SEC) over allegations of misleading investors.

The investigation centers around internal communications involving CEO Sam Altman, raising questions about the firm’s transparency and governance, as reported by the Wall Street Journal (WSJ).

SEC Probes Sam Altman’s OpenAI

The Securities and Exchange Commission (SEC) has launched an investigation into OpenAI following concerns that investors may have been misled, as reported by the Wall Street Journal. This inquiry comes on the heels of a leadership shakeup within the AI firm, particularly focusing on internal communications involving CEO Sam Altman.

Notably, Altman’s abrupt dismissal and subsequent reinstatement in November 2023 triggered a significant overhaul of OpenAI’s board, including the departure of co-founder Ilya Sutskever.

Major investor Microsoft (MSFT) had also taken a non-voting seat on the AI firm’s board in November. Notably, despite requests for comment from the WSJ, OpenAI has remained silent on the matter.

Meanwhile, this investigation adds to the growing scrutiny surrounding OpenAI’s governance structure, especially considering its evolution from a non-profit organization to a prominent player in the AI industry.