Montana Attorney General Austin Knudsen is leading a coalition of ten state attorneys general in calling on the U.S. Securities and Exchange Commission to conduct a rigorous review of any filings submitted by OpenAI ahead of the company’s anticipated initial public offering, citing concerns about undisclosed conflicts of interest involving chief executive Sam Altman.
In a letter sent Tuesday to SEC Chairman Paul Atkins, Knudsen outlined what he described as a pattern of self-dealing by Altman, pointing to reports of financial entanglements between Altman’s personal investment portfolio and companies that have done business with OpenAI. The letter also alleges Altman has used his position at the company to steer financial support toward his outside ventures without adequate disclosure to investors or the public.
The concerns carry particular weight for state pension systems. Montana’s public investment funds are exposed to public markets and provide retirement benefits to law enforcement officers, firefighters, teachers, and other state employees. OpenAI’s IPO is widely expected to value the company at more than $1 trillion, meaning any governance failures or undisclosed conflicts could carry significant financial consequences for ordinary investors and public pension beneficiaries alike.
“I have serious concerns about OpenAI’s leadership and what it could mean for public retirement systems across the nation if the company moves forward with its initial public offering,” Knudsen said. “As Attorney General, I have a duty to protect state investments and all Montana consumers.”
The coalition is asking the SEC to ensure that Altman and other senior OpenAI executives make full and transparent disclosures of any conflicts of interest in their filings with the commission. The attorneys general argue that failure to disclose such entanglements would constitute the kind of conduct that warrants scrutiny under federal securities law.
“It is essential that investors receive clear notice of any conflicts of interest on the part of Altman or other senior OpenAI personnel,” Knudsen wrote. “Only full transparency on these issues will enable investors — including our citizens and our respective States’ investment funds — to make informed decisions whether to invest in OpenAI’s publicly traded stock.”
Joining Knudsen in the letter were the attorneys general of Alabama, Florida, Idaho, Iowa, Louisiana, Nebraska, Oklahoma, and West Virginia. OpenAI and the SEC did not immediately respond to requests for comment.
By: DNU staff