The Securities and Exchange Commission investigating whether OpenAI misled its investors in a probe triggered by CEO Sam Altman’s temporary ouster from the company last year, the Wall Street Journal reported.
The SEC's probe was triggered by Sam Altman's temporary ouster from OpenAI last year.
Citing people familiar with the investigation, the Journal reported the SEC has subpoenaed internal records from the company's current and former leaders and board members.
The regulator has also asked leaders at the company to preserve internal documents.
The SEC’s probe is linked to the sudden ouster of Altman by OpenAI’s board in November last year, alleging the CEO was not “consistently candid” in his communications.
A source cited by the report said no specific comment or communication by Altman has been deemed misleading by the regulator, and noted they believed it was simply an expected response to the board’s allegations.
Altman eventually returned as the company’s CEO less than a week later, as a new board of directors took charge.
The ChatGPT-maker faced major turmoil last November after Altman's unexpected firing. The board members said the ouster was the result of an internal review, which found Altman was “not consistently candid in his communications with the board.” The board also said it no longer had confidence in Altman’s ability to continue leading the company. Immediately after this, OpenAI co-founder Greg Brockman announced he was also exiting the company, saying both he and Altman were “shocked and saddened” by the board’s actions. The decision to remove Altman faced a strong pushback from the company’s major investors—including Microsoft, which briefly hired both Altman and Brockman to lead its AI efforts. The two co-founders eventually returned to the company under a new board of directors chaired by former Salesforce co-CEO Bret Taylor. Upon his return, Altman agreed to an internal investigation into his alleged conduct.
SEC Investigating Whether OpenAI Investors Were Misled (Wall Street Journal)