The U.S. Securities and Exchange Commission (SEC) is delving into internal communications by OpenAI CEO Sam Altman as part of an investigation into potential investor deception, Wall Streeet Journal disclosed.
The regulator’s scrutiny involves seeking internal records from present and former officials and directors at the company, with a subpoena issued to OpenAI in December, according to sources familiar with the matter.
The inquiry was spurred by the OpenAI board’s decision in November to terminate Altman as CEO and remove him from the board, citing concerns about his candor in communications with the board, hindering its oversight duties.
Altman swiftly reclaimed his CEO position, coinciding with OpenAI’s announcement of a revamped initial board led by former Salesforce co-CEO Bret Taylor as chair.
The upheaval within OpenAI last November, triggered by Altman’s abrupt dismissal, sparked internal turmoil and external scrutiny.
The board’s actions were met with resistance from major investors, including Microsoft, which briefly recruited Altman and co-founder Greg Brockman to lead its AI endeavors. Amid the scrutiny, Altman consented to an internal investigation into the allegations against him.
Beyond the SEC’s investigation, OpenAI’s business dealings, particularly its ties with Microsoft, have attracted regulatory attention worldwide.
In December, the FTC initiated preliminary inquiries into Microsoft’s substantial investments in OpenAI, while the U.K.’s Competitions and Markets Authority (CMA) and the European Commission also announced their scrutiny of the deal.
Meanwhile, SEC officials in New York have directed senior OpenAI executives to preserve internal documents as the investigation unfolds. These developments coincide with Altman’s purported discussions to secure significant funding for a chip venture aimed at bolstering AI capabilities, underscoring the complex landscape surrounding OpenAI’s operations and regulatory oversight.