Active Stocks
Fri Apr 12 2024 15:57:45
  1. Tata Steel share price
  2. 163.50 -1.00%
  1. NTPC share price
  2. 362.00 -0.32%
  1. ITC share price
  2. 430.10 -1.56%
  1. HDFC Bank share price
  2. 1,518.90 -1.10%
  1. State Bank Of India share price
  2. 766.75 -1.57%
Business News/ Companies / News/  Did CEO Sam Altman mislead OpenAI investors? US SEC investigating, says report
BackBack

Did CEO Sam Altman mislead OpenAI investors? US SEC investigating, says report

OpenAI CEO Sam Altman is under SEC scrutiny for alleged investor misinformation. Altman's removal and reinstatement in November were linked to communication issues. SEC investigation initiated after board decision to oust Altman

Altman was fired in November after the board 'concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities' (Bloomberg)Premium
Altman was fired in November after the board 'concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities' (Bloomberg)

The US Securities and Exchange Commission is scrutinising internal communications by OpenAI Chief Executive Sam Altman as part of an ongoing investigation into whether the company's investors were misled, the Wall Street Journal reported on Wednesday.

The regulator has been seeking internal records from current and former OpenAI officials and directors and has sent a subpoena to the company in December, the WSJ report said, citing people familiar with the matter. 

The report added that the investigation followed the OpenAI board's decision in November to fire Sam Altman as CEO and oust him from the board.

According to a Bloomberg report, to regain his job, Altman had agreed to an internal investigation, among other conditions. 

The abrupt nature of Altman's firing and a statement from the board saying that he hadn’t been “consistently candid in his communications" set up expectations for the emergence of a smoking gun. 

Even though there have been revelations of tensions within OpenAI over Altman's fundraising for an outside chip venture, including seeking funding in the Middle East, nothing like that has come out. Altman also had a dispute with former board member Helen Toner over a research paper she’d co-written that was critical of the company.

The Bloomberg report, citing a person with direct knowledge of the board’s thinking, who asked not to be named discussing private business matters, said that it was Altman’s pattern of behavior, rather than a single egregious action, that caused the board to lose trust in him.

In December, Bret Taylor, the chair of OpenAI’s board, said that the board will continue to take steps to strengthen OpenAI’s corporate governance. 

“While the review is ongoing, the board will continue to take steps to strengthen OpenAI’s corporate governance, build a qualified and diverse board of exceptional individuals, and oversee OpenAI’s important mission in ensuring that artificial general intelligence benefits all of humanity," he said.

 

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 29 Feb 2024, 11:31 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App