SEC Probes OpenAI for Potential Misleading Investor Communications

This inquiry follows the temporary removal of Altman as CEO last November, a decision reversed less than two weeks later with a restructured board.

The investigation, led by SEC officials in New York, focuses on OpenAI’s internal dynamics and Altman’s communications, without pinpointing specific misleading statements. This probe occurs amidst OpenAI’s valuation exceeding $80 billion during a recent tender offer, highlighting its significance in the AI industry.

OpenAI, balancing its nonprofit governance with a profit-driven arm supported by notable investments, including a $13 billion commitment from Microsoft, faces increasing scrutiny. This SEC investigation adds to OpenAI’s challenges, including a criminal investigation and competition inquiries related to its partnership with Microsoft.

As OpenAI navigates these legal and governmental hurdles, a report from the law firm WilmerHale is anticipated, reviewing the circumstances of Altman’s brief ouster and subsequent reinstatement, focusing on the board’s actions and Altman’s conduct.