OpenAI Drops Restrictive Nondisparagement Clause Tied to Employee Equity
OpenAI officially scraps a controversial exit agreement that forces departing employees to choose between their vested equity and their right to criticize the company. CEO Sam Altman expresses embarrassment over the provision as the AI firm faces multiple public relations challenges.
OpenAI removes a highly controversial nondisparagement agreement from its exit paperwork and promises not to enforce the clause against former employees. The company notifies previous staff members that it does not cancel and will not cancel any vested equity units, regardless of whether they signed the restrictive document. This policy change frees departing workers from having to choose between their earned financial stakes and their ability to speak openly about the AI company.
CEO Sam Altman states he is embarrassed by the provision and claims he did not know it existed within the company's contracts. The original policy draws heavy public scrutiny after reports reveal that exiting employees stand to lose millions of dollars in vested equity if they refuse to sign or if they violate the agreement. At least one former employee reportedly loses a sum equal to multiple times their family's net worth by declining to sign the document upon their departure.
This contractual reversal arrives during a tumultuous period for OpenAI as the organization navigates several high-profile controversies. The company recently disbands its "superalignment" team dedicated to long-term AI safety, following the departures of key leaders including chief scientist Ilya Sutskever. Furthermore, OpenAI faces public backlash from remaining safety team members who claim product launches overshadow safety protocols, as well as a vocal dispute with actress Scarlett Johansson over the unauthorized use of her voice for a ChatGPT assistant.