The emerging trend of Artificial intelligence (AI) might see a little bit of a halt as one of the world’s biggest financial watchdogs decided to go after OpenAI. The Securities and Exchange Commission (SEC) is reportedly investigating whether investors in OpenAI were misled. The commission is looking into the scenario when the AI organisation was going under a leadership dispute that unfolded last year.
SEC opens probe
According to the report, the investigation led by the US SEC focuses on internal communications made by CEO Sam Altman related to his removal from the position in November.
The watchdog is examining whether OpenAI investors were provided with accurate information during the last year’s controversy. The regulator issued a subpoena to OpenAI. It has requested the preservation of internal documents. The probe might particularly hover around the communications done by CEO Sam Altman surrounding his ouster.
The major argument emerged when Sam Altman faced a leadership dispute back in November 2023. This led to his removal as CEO. However, he later agreed to an internal investigation to regain his position. It is important to note that the board’s statement at the time suggested concerns about Altman’s communication consistency.
As reported, OpenAI selected lawyers from the firm WilmerHale to conduct an internal review into the matter that led to Altman’s removal. However, the review is still under process and the board is working to strengthen corporate governance.
How did this case become crucial?
OpenAI’s controversy saw Microsoft making major moves to invest in the firm. This development triggered the regulatory scrutiny. European Union (EU) began its inquiry examining whether Microsoft’s involvement should be vetted under the bloc’s merger rules. The EU move follows a similar step by the UK’s Competition and Markets Authority (CMA).
Microsoft’s investment move in OpenAI would have allowed it to integrate AI products into various aspects of its core businesses. Meanwhile, the SEC’s crucial investigation would find the alleged wrongdoings during the dispute.
The trend of AI also hit the crypto market at the top data tokens and recorded a healthy surge over the past few months. The cumulative market cap of these cryptos jumped by 3% in the last 24 hours. It now stands at $28.6 billion. However, Its 24 hour trading volume is up by a massive 75% to stand at $5.1 billion. Arkham turned out to be the biggest gainer in the last 24 hours. ARKM price is up by 50%.