OpenAI CEO Sam Altman is under the microscope for his personal investments as several GOP attorneys general and the House Oversight Committee have launched an investigation into potential conflicts of interest.
The Republican attorneys general from Florida, Montana, Nebraska, Iowa, West Virginia, and Louisiana have requested a review by the Securities and Exchange Commission (SEC). They have written to SEC Chairman Paul Atkins, urging him to examine potential conflicts ahead of OpenAI’s IPO, reported the Wall Street Journal on Monday.
The attorneys general have raised concerns about Altman’s “history of self-dealing and serious conflicts of interest.” They believe these issues could pose a significant risk to the company.
The Republicans argue that Altman’s dealings with companies he invests in could create conflict-of-interest concerns, as OpenAI’s involvement could potentially increase the value of these other companies.
Meanwhile, in a letter sent to Altman on Friday, the House Oversight Committee has asked for a briefing from a senior OpenAI executive about potential conflicts of interest. The committee is also seeking documents that detail the company’s governance practices.
OpenAI did not immediately respond to Benzinga‘s request for comments.
Altman Conflict Of Interest Concerns
When Altman was briefly removed and then reinstated as OpenAI CEO in 2023, concerns emerged within the board about his personal investments and possible conflicts of interest.
According to an April WSJ report that has also been quoted by the GOP attorneys general, Altman encouraged OpenAI to participate in funding rounds for companies he is financially tied to, including Helion, a nuclear-fusion startup facing financial strain, and Stoke Space, a rocket company competing with SpaceX. Altman holds significant stakes in both through personal investments and his venture firm Hydrazine, which has not been previously disclosed in detail. OpenAI has since indicated it wants to scale back side projects and focus on core competitive priorities.
During the Musk v. Altman trial, earlier this month, Greg Brockman, President of OpenAI, disclosed his nearly $30 billion equity stake in OpenAI as well as additional financial ties to Altman through stakes in Altman-backed ventures and a share in Altman’s family office.
Court records showed that Altman granted Brockman an interest in his personal investment fund in 2017, an arrangement that Elon Musk‘s legal team argued could have compromised Brockman’s independence.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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