ASKING QUESTIONS

OpenAI Probed by SEC After CEO’s Short-Lived Ouster: WSJ

The regulator is apparently investigating if the ChatGPT maker’s investors were misled.

The Securities and Exchange Commission is investigating whether or not OpenAI’s investors were misled, according to a report, with CEO Sam Altman’s internal communications being looked at as part of the probe. The regulator subpoenaed OpenAI for its current and former officials’ records in December, according to The Wall Street Journal. The request reportedly came the month after the ChatGPT maker’s board decided to fire Altman, with the directors at the time cryptically accusing him of having not been “consistently candid in his communications.” Altman was reinstated as CEO less than two weeks later. The SEC probe is the latest headache for OpenAI, which is facing a mounting list of regulatory and legal challenges. The board’s November allegation against Altman in November is the subject of an ongoing criminal investigation in New York, according to the Journal. On Wednesday, three progressive news outlets joined The New York Times in suing OpenAI, alleging that the company breached copyright by training ChatGPT on their articles.