US regulators are launching an investigation into OpenAI following allegations of misleading claims made to investors. The Securities and Exchange Commission (SEC) is examining internal communications, including emails and records, from OpenAI CEO Sam Altman. The decision to investigate came after Altman was initially ousted as CEO by the board, who accused him of lacking candor in his communications. However, Altman was quickly reinstated after the company’s workforce threatened to resign in protest. The SEC inquiry is reportedly a response to the board’s comments and has not identified any specific misleading statements by Altman.
OpenAI’s ChatGPT product, launched in November 2022, has gained worldwide popularity and the company is now valued at $80 billion. However, OpenAI is facing multiple investigations by regulators and government bodies. In January, the US Federal Trade Commission announced an investigation into OpenAI and other tech firms, including Amazon and Alphabet, to examine their AI investments and their impact on competition. Additionally, the Competition and Markets Authority in the UK is investigating the partnership between OpenAI and its largest investor, Microsoft.
These investigations have raised concerns about the company’s operations and its impact on the AI sector. The SEC’s probe into misleading claims adds to the regulatory scrutiny surrounding OpenAI. While investigations do not always result in accusations of wrongdoing, they indicate a growing concern about the company’s practices.
OpenAI and Microsoft, its biggest investor, have been contacted for comment but have not yet responded. As the investigations continue, it remains to be seen how the findings will affect OpenAI and the broader AI industry.
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