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OpenAI Reverses Controversial Exit Agreements For Former Employees

OpenAI logo and Sam Altman in background on screen

OpenAI has reversed its decision to require former employees to sign non-disparagement agreements that wouldn’t expire or keep their vested equity in the company.

On Thursday, May 23, the firm sent an internal memo to former and current employees.

It states OpenAI will not enforce non-disparagement or non-solicitation agreements signed by former employees.

The memo acknowledged some employees were informed at the time of departure that they needed to sign a general release agreement, including a non-disparagement clause, to keep their vested equity. 

It read: "Regardless of whether you executed the Agreement, we write to notify you that OpenAI has not canceled, and will not cancel, any Vested Units.”

“We’re incredibly sorry that we’re only changing this language now; it doesn’t reflect our values or the company we want to be”

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An OpenAI spokesperson said: “We have not and never will take away vested equity, even when people didn’t sign the departure documents. 

“We’ll remove non-disparagement clauses from our standard departure paperwork, and we’ll release former employees from existing non-disparagement obligations unless the nondisparagement provision was mutual.” 

The spokesperson added: “We’re incredibly sorry that we’re only changing this language now; it doesn’t reflect our values or the company we want to be.”

This policy change comes amid increasing scrutiny of OpenAI. 

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Recently, the company faced backlash for its decision to pull the voice of "Sky" from its ChatGPT product. 

The voice had caused controversy for its resemblance to Scarlett Johansson’s character in the movie "Her." 

It led to allegations from Johansson that OpenAI used her voice without consent.

Additionally, OpenAI disbanded its team focused on long-term AI risks just a year after its formation. 

Some members of this team have been reassigned to other roles within the company. 

The news followed the departures of team leaders Ilya Sutskever, an OpenAI co-founder, and Jan Leike, who criticized OpenAI’s safety practices.

Co-founder and CEO Sam Altman said he was disappointed by Leike’s departure and that the company had more work to do.

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