Explosive Report Alleges Widespread Deception and Misconduct by Sam Altman and OpenAI
A comprehensive report exposing alleged misconduct by Sam Altman, CEO of OpenAI, has surfaced, raising serious questions about his leadership and the ethical practices of the AI giant. The report, compiled by two non-profit tech watchdogs, The Midas Project and The Tech Oversight Project, details a range of accusations, including instances of alleged lying, conflicts of interest, and hidden financial stakes. This report aims to unveil the truth behind Altman's AI empire.
The Organizations Behind the Report
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The Tech Oversight Project, founded by Sacha Haworth, Kyle Morse, and Marjorie K Connolly, focuses on equitable access to technology, particularly AI.
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The Midas Project is a volunteer-led organization seeking to regulate tech giants through legislation.
Together, these groups compiled a 50+ page report, drawing on publicly available letters, internal company documents, and legal filings to support their claims.
Key Allegations Against Sam Altman
The report outlines several alleged instances of misconduct by Altman. These range from misrepresenting his professional roles to concealing financial interests in companies with ties to OpenAI.
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False Claims of Y Combinator Chairmanship: Altman allegedly misrepresented himself as Chairman of Y Combinator (YC) in filings with the Securities and Exchange Commission (SEC), despite never officially holding that title. He allegedly announced the change without the approval of YC partners and continued to claim the title in SEC filings even after the announcement was removed.
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Altering Profit Caps and Concealing Equity: He is accused of secretly modifying the agreed-upon profit cap for OpenAI, originally intended to ensure that benefits from transformative AI would be distributed for the benefit of humanity. While initially promising a 100x return limit, the cap was reportedly changed to an annual 20% increase, potentially exceeding \$100 trillion over 40 years, without public disclosure. Furthermore, while telling Congress he has no equity in OpenAI, the report alleges he indirectly holds OpenAI shares through Sequoia and YC funds. It is also reported that Altman may receive 7% equity of OpenAI after a restructuring, which is estimated to be $20 billion.
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Conflicts of Interest and Self-Dealing: Altman's investment portfolio includes over 80 companies, some of which have business relationships with OpenAI, raising concerns about potential conflicts of interest.
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He has invested in companies like Reddit, Stripe, and Rain AI, which have either partnered with or received investments from OpenAI.
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Altman holds a significant stake (7.5%) in Reddit, and his net worth increased by \$50 million when Reddit announced a partnership with OpenAI.
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OpenAI signed a \$51 million intent to purchase chips from Rain AI.
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His investments into Retro Biosciences (\$180 million) and Helion Energy (\$375 million) are also concerning. OpenAI has an established partnership with Retro Biosciences. In addition, OpenAI is in discussion to buy a substantial amount of nuclear fusion energy from Helion.
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Suppression of Dissent: OpenAI allegedly enforced a policy requiring departing employees to forfeit vested equity if they criticized the company, a claim Altman had publicly denied. The report alleges he signed the related document in April 2023 and included it in a non-disclosure agreement that employees are forbidden to acknowledge.
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Lack of Transparency with the Board: Altman allegedly failed to disclose his personal OpenAI startup fund to the board, while simultaneously requiring board members to inform him of their communications with employees. He pushed for board members to resign if they formed or joined companies that were OpenAI customers or competitors.
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History of Being Ousted: Many senior employees have tried to remove Altman in the three largest companies he has managed. For his startup, Loopt, senior employees urged the board to dismiss Altman as CEO for "deceptive and chaotic behavior." At YC, Altman was forced to leave because he prioritized personal gain and was accused of absenteeism.
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Negative Feedback from OpenAI Executives: Former OpenAI executives have submitted negative feedback regarding Altman to the board. Former chief scientist Ilya Sutskever does not believe Sam should control the AGI button. Also, Ilya provided a PDF including many Slack screenshots that record dozens of instances of Sam lying or exhibiting other inappropriate behaviors. Mira Murati also expressed discomfort in Altman leading the company to AGI. Furthermore, the Amodei siblings, founders of Anthropic, saw Altman's management tactics as abusive.
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Security Concerns: OpenAI concealed a security breach where hackers stole details about AI technology for more than a year before reporting it. When Leopold Aschenbrenner told the board about his concerns about the company's security, Sam Altman fired him.
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Conflicting Stances on AI Regulation: Altman is accused of publicly supporting AI regulation while simultaneously lobbying to weaken the EU's Artificial Intelligence Act.
Reactions and Implications
The report has sparked significant debate and criticism. Elon Musk has referred to Altman as "sketchy Sam Altman" on social media. While the allegations haven't been officially responded to by Altman or OpenAI, the severity and scope of the claims call for closer scrutiny of OpenAI's governance and ethical practices. The report is designed to juxtapose OpenAI's vision in 2020 with their actual business practices in 2025 to let the public decide.
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