OpenAI Revokes Decision to Not Pay Former Employees Who Failed to Sign NDAs

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OpenAI Under Fire for Threat to Claw Back Vested Equity From Former Employees
OpenAI CEO Sam Altman speaks during the Microsoft Build conference at the Seattle Convention Center Summit Building in Seattle, Washington on May 21, 2024. JASON REDMOND/AFP via Getty Images

In a recent development, OpenAI has retracted its contentious decision to enforce non-disparagement agreements upon departing employees, allowing them to retain their vested equity without needing such agreements, per CNBC.

This shift comes after an internal memo was circulated, notifying former staff that the company would not nullify vested units, regardless of executing the non-disparagement agreement.

Vested units typically refer to company shares or equity that have fully matured or become fully owned by an employee, often as part of a compensation or incentive plan.

OpenAI on NDA Agreements

CEO Sam Altman has long stated that he felt "embarassed" over the AI company's threats. In the future, OpenAI also pledged to refrain from enforcing other restrictive clauses related to non-disparagement or non-solicitation.

This decision departs from the company's previous stance and reflects a commitment to revised departure procedures. An OpenAI spokesperson expressed regret over the delayed change, emphasizing that it contradicts its values and desired identity.

Interestingly, the news also follows a recent issue, including the removal of a chatbot voice named "Sky" and the disbandment of its long-term AI risk assessment team, as reported by VCPost.

Tags
OpenAI, AI, Sam Altman

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