OpenAI CEO Sam Altman speaks during the Microsoft Build conference at Microsoft headquarters in Redmond, Washington, on May 21, 2024.
Jason Redmond | AFP | Getty Images
A group of current and former OpenAI employees published an open letter Tuesday describing concerns about the artificial intelligence industry’s rapid advancement despite a lack of oversight and an absence of whistleblower protections for those who wish to speak up.
“AI companies have strong financial incentives to avoid effective oversight, and we do not believe bespoke structures of corporate governance are sufficient to change this,” the employees wrote in the open letter.
OpenAI, Google, Microsoft, Meta and other companies are at the helm of a generative AI arms race — a market that is predicted to top $1 trillion in revenue within a decade — as companies in seemingly every industry rush to add AI-powered chatbots and agents to avoid being left behind by competitors.
The current and former employees wrote AI companies have “substantial non-public information” about what their technology can do, the extent of the safety measures they’ve put in place and the risk levels that technology has for different types of harm.
“We also understand the serious risks posed by these technologies,” they wrote, adding that the companies “currently have only weak obligations to share some of this information with governments, and none with civil society. We do not think they can all be relied upon to share it voluntarily.”
The letter also details the current and former employees’ concerns about insufficient whistleblower protections for the AI industry, stating that without effective government oversight, employees are in a relatively unique position to hold companies accountable.
“Broad confidentiality agreements block us from voicing our concerns, except to the very companies that may be failing to address these issues,” the signatories wrote. “Ordinary whistleblower protections are insufficient because they focus on illegal activity, whereas many of the risks we are concerned about are not yet regulated.”
The letter asks AI companies to commit to not entering or enforcing non-disparagement agreements; to create anonymous processes for current and former employees to voice concerns to a company’s board, regulators and others; to support a culture of open criticism; and to not retaliate against public whistleblowing if internal reporting processes fail.
Four anonymous OpenAI employees and seven former ones, including Daniel Kokotajlo, Jacob Hilton, William Saunders, Carroll Wainwright and Daniel Ziegler, signed the letter. Signatories also included Ramana Kumar, who formerly worked at Google DeepMind, and Neel Nanda, who currently works at Google DeepMind and formerly worked at Anthropic. Three famed computer scientists known for advancing the artificial intelligence field also endorsed the letter: Geoffrey Hinton, Yoshua Bengio and Stuart Russell.
“We agree that rigorous debate is crucial given the significance of this technology and we’ll continue to engage with governments, civil society and other communities around the world,” an OpenAI spokesperson told CNBC, adding that the company has an anonymous integrity hotline, as well as a Safety and Security Committee led by members of the board and OpenAI leaders.
Microsoft declined to comment.
Mounting controversy for OpenAI
Last month, OpenAI backtracked on a controversial decision to make former employees choose between signing a non-disparagement agreement that would never expire, or keeping their vested equity in the company. The internal memo, viewed by CNBC, was sent to former employees and shared with current ones.
The memo, addressed to each former employee, said that at the time of the person’s departure from OpenAI, “you may have been informed that you were required to execute a general release agreement that included a non-disparagement provision in order to retain the Vested Units [of equity].”
“We’re incredibly sorry that we’re only changing this language now; it doesn’t reflect our values or the company we want to be,” an OpenAI spokesperson told CNBC at the time.
Tuesday’s open letter also follows OpenAI’s decision last month to disband its team focused on the long-term risks of AI just one year after the Microsoft-backed startup announced the group, a person familiar with the situation confirmed to CNBC at the time.
The person, who spoke on condition of anonymity, said some of the team members are being reassigned to multiple other teams within the company.
The team’s disbandment followed team leaders, OpenAI co-founder Ilya Sutskever and Jan Leike, announcing their departures from the startup last month. Leike wrote in a post on X that OpenAI’s “safety culture and processes have taken a backseat to shiny products.”
Ilya Sutskever, Russian Israeli-Canadian computer scientist and co-founder and Chief Scientist of OpenAI, speaks at Tel Aviv University in Tel Aviv on June 5, 2023.
Jack Guez | AFP | Getty Images
CEO Sam Altman said on X he was sad to see Leike leave and that the company had more work to do. Soon after, OpenAI co-founder Greg Brockman posted a statement attributed to himself and Altman on X, asserting that the company has “raised awareness of the risks and opportunities of AGI so that the world can better prepare for it.”
“I joined because I thought OpenAI would be the best place in the world to do this research,” Leike wrote on X. “However, I have been disagreeing with OpenAI leadership about the company’s core priorities for quite some time, until we finally reached a breaking point.”
Leike wrote he believes much more of the company’s bandwidth should be focused on security, monitoring, preparedness, safety and societal impact.
“These problems are quite hard to get right, and I am concerned we aren’t on a trajectory to get there,” he wrote. “Over the past few months my team has been sailing against the wind. Sometimes we were struggling for [computing resources] and it was getting harder and harder to get this crucial research done.”
Leike added that OpenAI must become a “safety-first AGI company.”
“Building smarter-than-human machines is an inherently dangerous endeavor,” he wrote. “OpenAI is shouldering an enormous responsibility on behalf of all of humanity. But over the past years, safety culture and processes have taken a backseat to shiny products.”
The high-profile departures come months after OpenAI went through a leadership crisis involving Altman.
In November, OpenAI’s board ousted Altman, saying in a statement that Altman had not been “consistently candid in his communications with the board.”
The issue seemed to grow more complex each day, with The Wall Street Journal and other media outlets reporting that Sutskever trained his focus on ensuring that artificial intelligence would not harm humans, while others, including Altman, were instead more eager to push ahead with delivering new technology.
Altman’s ouster prompted resignations or threats of resignations, including an open letter signed by virtually all of OpenAI’s employees, and uproar from investors, including Microsoft. Within a week, Altman was back at the company, and board members Helen Toner, Tasha McCauley and Ilya Sutskever, who had voted to oust Altman, were out. Sutskever stayed on staff at the time but no longer in his capacity as a board member. Adam D’Angelo, who had also voted to oust Altman, remained on the board.
American actress Scarlett Johansson at Cannes Film Festival 2023. Photocall of the film Asteroid City. Cannes (France), May 24th, 2023
Meanwhile, last month, OpenAI launched a new AI model and desktop version of ChatGPT, along with an updated user interface and audio capabilities, the company’s latest effort to expand the use of its popular chatbot. One week after OpenAI debuted the range of audio voices, the company announced it would pull one of the viral chatbot’s voices named “Sky.”
“Sky” created controversy for resembling the voice of actress Scarlett Johansson in “Her,” a movie about artificial intelligence. The Hollywood star has alleged that OpenAI ripped off her voice even though she declined to let them use it.
The logo of Japanese company SoftBank Group is seen outside the company’s headquarters in Tokyo on January 22, 2025.
Kazuhiro Nogi | Afp | Getty Images
A sector-wide pullback hit Asian chip stocks Friday, led by a steep decline in SoftBank, after Nvidia‘s sharp drop overnight defied its stronger-than-expected earnings and bullish outlook.
SoftBank plunged more than 10% in Tokyo. The Japanese tech conglomerate recently offloaded its Nvidia shares but still controls British semiconductor company Arm, which supplies Nvidia with chip architecture and designs.
SoftBank is also involved in a number of AI ventures that use Nvidia’s technology, including the $500 billion Stargate project for data centers in the U.S.
South Korea’s SK Hynix fell nearly 10%. The memory chip maker is Nvidia’s top supplier of high-bandwidth memory used in AI applications. Samsung Electronics, a rival that also supplies Nvidia with memory, fell over 5%.
Taiwan’s Hon Hai Precision Industry, also known as Foxconn, which manufactures server racks designed for AI workloads, dipped 4%.
The retreat in major Asian semiconductor giants comes after Nvidia fell over 3% in the U.S. on Thursday, despite beating Wall Street expectations in its third-quarter earnings the night before.
The company also provided stronger-than-expected fourth-quarter sales guidance, which analysts said could lift earnings expectations across the sector.
However, smaller chip players in Asia were not spared either.
In Tokyo, Renesas Electronics, a key Nvidia supplier, fell 2.3%. Tokyo Electron, which provides essential chipmaking equipment to foundries that manufacture Nvidia’s chips, was down 5.32%.
Another Japanese chip equipment maker, Lasertec, was down over 3.5%.
An electric air taxi by Joby Aviation flies near the Downtown Manhattan Heliport in Manhattan, New York City, U.S., November 12, 2023.
Roselle Chen | Reuters
Air taxi maker Joby Aviation in a new lawsuit accused competitor Archer Aviation of using stolen information by a former employee to “one-up” a partnership deal with a real estate developer.
“This is corporate espionage, planned and premeditated,” Joby said in the lawsuit filed Wednesday in a California Superior Court in Santa Cruz, where the company is based.
Archer and Joby did not immediately respond to CNBC’s request for comment.
The lawsuit alleges that former U.S. state and local policy lead, George Kivork, downloaded dozens of files and sent some content to his personal email two days before he resigned in July to take a job at Archer, which had recruited him.
By August, Joby said a partner that worked with Kivork said it had been approached by Archer with a “more lucrative deal.” Joby alleges that the eVTOL rival’s understanding of “highly confidential” details helped it leverage negotiations.
Joby also said the developer attempted to terminate the agreement, citing a breach of confidentiality.
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Kivork refused to return the files when Joby approached him after conducting an investigation, according to the suit. The company also said Archer denied wrongdoing, and would not disclose how it learned about the terms of the agreement or provide results from an internal investigation it allegedly undertook.
The lawsuit comes during a busy period for electric vertical takeoff and landing (eVTOL) technology as companies race to gain Federal Aviation Administration certification to start flying commercially. ‘
Joby argued in the complaint that it’s “imperative” to protect Joby’s work “from this type of espionage” to promote the sector’s success and ensure fair competition.
Last week, Joby said it completed its first test flight for a hybrid aircraft it’s working on with defense contractor L3Harris. This month, Amazon-backed Beta Technologies, another electric flight company, also went public on the New York Stock Exchange.
Joby shares have more than doubled over the last year, while Archer is up about 68%.
In August 2023, Archer settled a previous legal dispute with Boeing-owned Wisk Aero over the alleged theft of trade secrets. As part of the deal, Archer agreed to use Wisk as its autonomous tech partner.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets : There was an ugly reversal in the market Thursday. Stocks soared for most of the morning in reaction to Nvidia ‘s strong quarter, bullish outlook on AI spending, and pushback that customers weren’t generating a sufficient return on their investment. Nvidia shares climbed as high as $196 on Thursday — a roughly 5% gain — and its gravitational pull helped lift other technology and AI-adjacent industrial stocks. The market’s gains pushed the S & P 500 into positive territory for the week. However, around 11 a.m. ET, the market began to fall rapidly, with technology and industrial names leading the decline. Nvidia gave up all of its gains and dropped 2%. Bitcoin hit its lowest level since late April. Notable defensive stocks like consumer staples held onto their gains, though. That resilience reinforces our decision to diversify further, which we did earlier this week , by adding Procter & Gamble to the portfolio. The S & P 500’s decline has pushed the index back toward the lows of its recent downturn, marking a roughly 5% pullback from its high. It remains to be seen whether Thursday’s reversal is a sign of investors continuing to retreat from risk assets or simply a retest of the recent downdraft. But Nvidia’s earnings report gave zero indication of a slowdown in demand for AI compute. Interest rate cut: Expectations for a 25-basis-point rate cut at the Federal Open Market Committee’s next meeting in December continue to fluctuate. One month ago, a rate cut seemed like a sure thing with a 98.8% probability, according to the CME FedWatch Tool . But the odds dropped to about 50% a week ago after a slew of hawkish commentary from Federal Reserve members. On Wednesday, the odds of a cut plummeted to 30% after the release of the October Fed minutes, which showed that the central bank was hesitant to lower rates again this year. But after the long-delayed September jobs data finally came out Thursday, the probability of a 25-basis-point reduction jumped to 40%. Although the economy added 119,000 jobs in September, more than double the forecasted figure, the unemployment rate ticked higher. The Fed is in a bind, trying to balance a softening labor market against the risk that a rate cut could reignite inflation. Up next: Gap, Ross Stores , Intuit , and Veeva Systems report after the closing bell. BJ’s Wholesale Club will post results Friday morning. On the economic data side, tomorrow we’ll get November’s S & P Global Flash PMI for Manufacturing and Services, along with the University of Michigan’s consumer sentiment survey. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.