Home ยป Revealed: OpenAI Enforces Contract Prohibiting Departing Employees from Exposing Company Secrets, Otherwise Facing Stock Vesting Clawback – Sam Altman Acknowledges and is Currently Addressing the Issue

Revealed: OpenAI Enforces Contract Prohibiting Departing Employees from Exposing Company Secrets, Otherwise Facing Stock Vesting Clawback – Sam Altman Acknowledges and is Currently Addressing the Issue

It seems like another eventful week for OpenAI with the unveiling of the new GPT-4o model, followed by a co-founder’s resignation, and several more employees from the same department also stepping down. After these events, Vox reported internal information within the company indicating that former OpenAI employees may not be able to disclose much due to unusual contract terms compared to other companies.

Non-disclosure agreements (NDAs) for current and former employees who have resigned are common, but Vox revealed that OpenAI’s conditions were stranger than usual. If any breaches occur, such as revealing secrets or criticizing the company, OpenAI has the right to reclaim all vested stocks allocated to that employee, which remains effective indefinitely. Additionally, if an employee does not sign this agreement upon resignation, OpenAI can also reclaim the stocks.

This contract has led Vox to believe that former OpenAI employees may not be able to reveal much beyond what happens in AI development, high-level capabilities, or AGI, which could be a reason for Ilya Sutskever’s resignation. However, this contract format seems abnormal because reclaimed stocks should not be retrievable.

OpenAI CEO Sam Altman acknowledged and apologized for the incident, admitting that the NDA stipulation does indeed mention the possibility of stock allocation cancellation. Nevertheless, he stated that such an event has never occurred to anyone, and this matter is regrettable. He has ordered text revisions to emphasize that allocated stocks remain with employees and any newly revised agreements will also affect all previously resigned employees.

Source: Vox

TLDR: OpenAI faces controversy over unusual non-disclosure agreement terms that allow the company to reclaim vested stocks from former employees for breaches, prompting a response and revisions from CEO Sam Altman.

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