The Securities and Exchange Commission (S.E.C.) has launched an inquiry into OpenAI following the unexpected removal of Sam Altman, the company’s chief executive, by its board of directors at the end of last year. The S.E.C. has sent official requests to OpenAI, the developer of the ChatGPT online chatbot, seeking information about the situation, but it remains unclear whether the investigation is focused on Mr. Altman’s behavior, the board’s decision to remove him, or both.
Despite OpenAI’s efforts to move past the controversy surrounding Mr. Altman’s dismissal, the company continues to face scrutiny. In addition to the S.E.C. inquiry, OpenAI has hired a law firm to conduct its own investigation into Mr. Altman’s behavior and the board’s decision to oust him. The board cited a lack of confidence in Mr. Altman’s ability to lead the company and his alleged lack of transparency in communications as reasons for his dismissal, although specifics were not provided. Mr. Altman was reinstated five days later.
Privately, the board expressed concerns that Mr. Altman was not fully disclosing his plans to raise funds from investors in the Middle East for an A.I. chip project. Spokespeople for the S.E.C. and OpenAI, as well as Mr. Altman’s lawyer, declined to comment on the matter. The S.E.C.’s inquiry was initially reported by The Wall Street Journal.
OpenAI gained significant attention in the industry when it released ChatGPT at the end of 2022, sparking an industry-wide A.I. boom. The company is a leader in generative A.I., a technology that can generate text, sounds, and images from short prompts. Despite its success, generative A.I. has raised concerns about its potential negative impacts, such as spreading disinformation, replacing jobs, and posing threats to humanity.
To address the turmoil surrounding Mr. Altman’s removal, OpenAI and the board agreed to remove two members and add two new ones, including Bret Taylor, a former Salesforce executive, and former Treasury Secretary Lawrence H. Summers. Additionally, OpenAI has initiated its own investigation into the matter, conducted by the WilmerHale law firm, which is expected to conclude soon.
