The Securities and Exchange Commission (SEC) has launched an investigation into allegations of potential investor deception by Sam Altman, the CEO of OpenAI. The probe focuses on internal communications sent by Altman, and the SEC has subpoenaed OpenAI for internal records from current and former officials and directors. This investigation comes after Altman’s removal as CEO by the board of the non-profit startup, who claimed that he was not consistently honest in his communications with them. The SEC has not yet specified any particular misleading statements made by Altman.
The SEC’s investigation is being conducted by officials in New York, and they have requested OpenAI executives to preserve the company’s internal communications. Sources have described the investigation as a predictable response to the former board’s claim about Altman’s lack of candor. However, the SEC has not made any public statements regarding the existence or nonexistence of the investigation.
Altman was reinstated as CEO of OpenAI less than two weeks after his resignation as part of a deal that removed the previous board members. The new board includes former Twitter chairman Bret Taylor, former Treasury Secretary Larry Summers, and Quora CEO Adam D’Angelo. Despite the controversy surrounding Altman’s removal and subsequent reappointment, OpenAI has recently completed a deal that values the company at $80 billion or more.
The probe by the SEC comes at a crucial time for Altman, as he is reportedly in talks to raise billions of dollars for a chip venture. OpenAI’s for-profit arm has secured investments from Microsoft, among others, with the tech giant committing $13 billion to the company. Altman’s return as CEO has not hindered OpenAI’s progress in developing new technology. The company recently unveiled Sora, a system that uses its “deep understanding of language” to generate high-quality videos based on simple text queries.
OpenAI’s involvement in these investigations raises questions about transparency and investor trust. The SEC’s investigation into Altman’s potential investor deception will shed light on the allegations made against the OpenAI CEO. It remains to be seen how this investigation will impact OpenAI’s reputation and its ability to secure future investments.
