The Securities and Exchange Commission began investigating OpenAI shortly after the company's board abruptly fired CEO Sam Altman late last year, according to three people familiar with the investigation.
The regulator has sent an official request to OpenAI, the developer of the ChatGPT online chatbot, seeking information on the situation. It is unclear whether the SEC is investigating Altman's conduct, the board's decision to fire him, or both.
Although OpenAI tried to turn the page on Altman's firing and was quickly reinstated, the controversy continues to plague the company. In addition to the SEC investigation, the San Francisco artificial intelligence company hired a law firm to conduct its own investigation into Altman's actions and the board's decision to fire him.
The company's board fired him on November 17, saying it no longer had confidence in his ability to run OpenAI. The newspaper said he had not “consistently and openly communicated” but did not provide further details. It was agreed that he would be reinstated in five days.
The board was privately concerned that Mr. Altman had not shared all of his plans to raise money from Middle Eastern investors for the AI chip project, according to people familiar with the matter.
Spokespeople for the SEC and OpenAI, as well as Altman's attorney, declined to comment.
The SEC investigation was earlier reported by the Wall Street Journal.
OpenAI released ChatGPT in late 2022, sparking an industry-wide AI boom. The company is considered a leader in so-called generative AI, technology that can generate text, audio, and images from short prompts. Recent funding deals value the startup at more than $80 billion.
Many believe that generative AI, which fundamentally changes the way computers work, has the potential to reshape industries as completely as the iPhone or web browser. Others argue that the technology could cause serious harm, help spread disinformation online, displace jobs at an unprecedented rate and even threaten humanity's future.
After the release of ChatGPT, Altman became the face of the industry's push toward generative AI, promoting the technology endlessly while acknowledging the risks.
To resolve the confusion surrounding Mr. Altman's firing, Mr. Altman and the board fired two members, former Salesforce executive Brett Taylor and former Treasury Secretary Lawrence H. Summers. We agreed to add it.
Altman and the board also agreed that OpenAI would launch its own investigation into the matter. This investigation by WilmerHale Law Firm is expected to conclude soon.
