ScamGPT? Sam Altman being investigated by SEC, accused of misleading OpenAI Investors

OpenAI and its CEO, Sam Altman, are reportedly under investigation by the US Securities and Exchange Commission (SEC) regarding statements made to the company’s investors. The investigation stems from emails, including those involving Altman, to determine if investors were misled during a tumultuous period in November that led to Altman’s removal and subsequent reinstatement, as per a report by the Wall Street Journal.

During this period, referred to by Microsoft employees as the “Turkey-Shoot Clusterfuck,” OpenAI’s board initially cited Altman’s lack of consistent candour in communications as the reason for his removal.

However, Altman was reinstated shortly after due to an employee revolt, with a modified board excluding those who ousted him.

Now, the SEC is looking into the matter to ascertain whether OpenAI was forthcoming in its communications.

This isn’t the first time government officials have scrutinized this claim; inquiries began during the upheaval in November, with the US attorney’s office in Manhattan and other regulators seeking clarification on the statement.

The SEC’s investigation, based in New York, has involved requests for senior OpenAI employees to preserve internal documents, a standard practice in such cases. The agency’s interest in the matter is described as “predictable” by sources close to the probe.

News of the SEC investigation emerges shortly after reports that an internal investigation into Altman’s ouster by the WilmerHale law firm is nearing completion. Altman has reportedly indicated that the company’s probe will conclude soon, with results possibly presented to the OpenAI board in early March.

Despite leaks and speculation, the public has only received fragmentary information about OpenAI’s internal turmoil. However, the government’s investigation may compel OpenAI to disclose more details about the events surrounding Altman’s removal and reinstatement.

(With inputs from agencies)