Oversight chair seeks information from OpenAI’s Sam Altman about potential financial conflicts
WASHINGTON — The chair of the House Oversight Committee has sent a letter to OpenAI Chief Executive Sam Altman requesting information about potential conflicts of interest between Altman’s personal investments and his operation of the company.
The letter, sent Friday, comes amid a high-stakes legal battle currently playing out in an Oakland federal courtroom between onetime partners Altman and Elon Musk, the world’s richest man, who in 2015 co-founded the artificial intelligence company best known for creating ChatGPT.
The company was first established solely as a nonprofit corporation and the letter sent to Altman by Rep. James Comer (R-Ky.), the chair of the Oversight Committee, indicates that the panel is “investigating potential conflicts of interest involving capital from nonprofit corporations invested in startups and other for-profit companies.”
Comer has requested by May 22 a briefing from the company official responsible for oversight of potential conflicts involving company officers and directors, including Altman, as well as all documents related to conflict of interest policies and guidance for those executives.
While OpenAI was created as a nonprofit designed to responsibly harness the power of the emerging AI technology, the company created a for-profit subsidiary in 2019 and three years later released ChatGPT, which jumpstarted widespread adoption of the technology.
Musk, the chief executive of Tesla, left OpenAI’s board in 2018, one year before the creation of the for-profit arm. He is arguing that Altman and another co-founder, Greg Brockman, who is also OpenAI’s president, betrayed the original mission of the nonprofit organization, driven by their desire to “cash in” on the technology.
Musk added Microsoft, a significant investor in OpenAI, to the lawsuit in 2024. OpenAI is rumored to be gearing up to go public later this year or early next year, and was recently valued at $852 billion.
Musk has said that he invested $38 million in the OpenAI nonprofit, but he does not stand to benefit from a potential OpenAI public offering.
He created a rival company, xAI, in 2023 that was later folded into his company SpaceX.
In the lawsuit, Musk is seeking $150 billion in damages, for Altman to be removed from the company and for the company to be fully returned to its nonprofit status.
Musk’s complaint also alleges that Altman engaged in self-dealing by directing OpenAI to pursue deals with companies in which he also held a personal stake, including nuclear fusion power company Helion.
Comer’s letter cites reporting that Altman’s pursuit of a Helion deal, which is still ongoing, would come at a lofty valuation of the power company, boosting its worth and the value of Altman’s investment.
Altman was briefly forced to step down from leadership of OpenAI in 2023 in part due to concerns about potential conflicts between his personal investments and his operation of the company, but was soon reinstated.
While the company’s board created an audit committee to investigate the potential conflicts of Altman and other officers, the findings were never disclosed.
Comer has requested that Altman turn over all documents and communication related to that audit committee.
In testimony at the trial on Tuesday, Bret Taylor, the chairman of the OpenAI board, said that per the company’s conflict of interest policy, “when OpenAI is engaging in business activities in organizations you have a financial interest in, you have to declare it and you have to recuse yourself from the final decisions.”
Taylor joined the OpenAI board shortly after Altman returned from being ousted. Taylor said that Altman at the time provided him with a note detailing his conflicts of interest.
Taylor said that Altman played no role in the board’s consideration of a deal with Helion. Altman resigned from the board of Helion earlier this year.
