OpenAI’s Exit Agreements: The Untold Story of Nondisparagement Clauses and Vested Equity

Sam Altman Discusses Possibility of Equity Forfeiture in OpenAI Non-Disclosure Agreement

In recent reports, it was revealed that OpenAI’s exit agreements contained nondisparagement clauses that threatened vested equity. This clause was enforced in certain cases, but CEO Sam Altman clarified that this policy was never enforced. He stated that he was unaware of the clause’s existence and added that it would be removed from future contracts.

Vox reported on the high-profile exits of key researchers like Jan Leike and Ilya Sutskever without signing a non-disparagement agreement, which could have resulted in the loss of vested equity if they did not comply with the policy. However, it is unclear whether or not these researchers were bound by a nondisparagement agreement preventing them from criticizing OpenAI.

Leike expressed concern over the company’s focus on products rather than safety protocols, while Sutskever attempted to remove Altman as CEO. Both researchers left OpenAI without giving specific reasons, leaving many questions unanswered.

OpenAI compensates its employees with a base salary of $300,000 and yearly grants of around $500,000 in equity compensation. The company has not responded to requests for comments immediately, and their parent company, Axel Springer, has a global deal allowing OpenAI to use its media brands’ reporting to train its models. It remains to be seen how OpenAI will move forward with its policies regarding employee contracts and non-disparagement agreements in the future.

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