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HomeTrendingUS SEC investigating if OpenAI investors were misled, WSJ reports

US SEC investigating if OpenAI investors were misled, WSJ reports

CEO Sam Altman’s internal emails are apparently being examined in an SEC inquiry.

US regulators are examining internal correspondence from OpenAI’s CEO, Sam Altman, as part of an investigation to see if investors in the technology startup were deceived, according to sources.

According to the Wall Street Journal (WSJ), the Securities and Exchange Commission (SEC) is looking into the emails and internal records of the directors and employees of the ChatGPT developer after receiving a subpoena in December.

Altman was dismissed in November because the board determined that he was not consistently honest in his dealings with them, which made it difficult for them to do their duties, OpenAI stated in a blog post.

SEC Probes Whether OpenAI Duped Investors

Altman eventually returned as the company’s CEO less than a week later, as a new board of directors took charge.

ChatGPT’s creator experienced significant upheaval in November following Altman’s sudden dismissal. The board members stated that Altman’s removal was due to an internal review that revealed he was not consistently honest in his dealings with the board. The board also stated that it no longer trusted Altman’s capacity to oversee the company. Following this, OpenAI co-founder Greg Brockman abruptly announced his resignation from the company, stating that both he and Altman were shocked and disappointed by the board’s decisions. Altman, whom Microsoft briefly employed along with Brockman to manage its AI initiatives, strongly opposed the decision to fire him. Later, both co-founders returned to the business, working with a new board of directors under the direction of former Salesforce co-CEO Bret Taylor. Altman consented to an internal probe into his alleged conduct upon returning.