PolicyTechnology

OpenAI Faces Backlash Over Aggressive Subpoenas Targeting Critical Nonprofits

OpenAI has issued extensive subpoenas to at least seven nonprofits that criticized its transition to for-profit status. Legal experts suggest these demands appear designed to burden small organizations with excessive costs and paperwork amid growing controversy over the company’s tactics.

Nonprofits Targeted After Criticizing OpenAI’s Direction

Multiple nonprofit organizations that have advocated for greater oversight of artificial intelligence companies are facing extensive legal demands from OpenAI, according to reports. Sources indicate that at least seven organizations have received subpoenas requesting detailed information about their funding sources, internal communications, and activities related to OpenAI’s controversial restructuring from a nonprofit to a for-profit entity.

BusinessLegal

Former Builder.ai Finance Chief Subpoenaed in US Investigation of Startup’s Collapse

The former CFO of Builder.ai has been subpoenaed to appear before a Manhattan grand jury as US prosecutors investigate the startup’s collapse. The Microsoft-backed company, once valued over $1 billion, reportedly revised revenues down to just a quarter of prior estimates after discovering potentially bogus sales.

US Authorities Intensify Builder.ai Investigation

Former Builder.ai chief financial officer Andres Elizondo has been subpoenaed by US prosecutors, according to reports from the Financial Times, as authorities deepen their investigation into the collapse of the Microsoft-backed startup. The subpoena reportedly requests Elizondo’s appearance before a grand jury in a Manhattan court for questioning this September.