OpenAI sends internal memo releasing former employees from controversial exit agreements
OpenAI Ends Gag Orders for Ex-Staff: Fair Move?
OpenAI has retracted its requirement for former employees to sign a perpetual non-disparagement agreement to retain their vested equity. An internal memo confirmed that all vested units would remain intact, regardless of the agreement's execution, and non-disparagement clauses would be removed from standard departure documents. The company apologized for not aligning with its values sooner, emphasizing the change to reflect the organization they aspire to be.
How did OpenAI communicate their decision to not enforce the non-disparagement agreement and other contract items to the former employees?
OpenAI communicated their decision to not enforce the non-disparagement agreement and other contract items through an internal memo sent to former employees, which was also shared with current employees. The memo explicitly stated that regardless of whether the former employees had signed the agreement containing the non-disparagement provision, OpenAI would not cancel any vested equity units4. Additionally, the memo clarified that OpenAI would not enforce any other non-disparagement or non-solicitation contract items that may have been signed. This information was conveyed as part of OpenAI's broader initiative to update its departure process, ensuring that former employees are aware that their vested equity remains secure and that they are released from certain contractual obligations previously imposed.
What specific terms were included in the non-disparagement agreement that OpenAI initially required former employees to sign?
OpenAI initially required former employees to sign a non-disparagement agreement that would never expire, in effect making them choose between signing the agreement or keeping their vested equity in the company. The agreement forbade former employees from making any negative statements about the company and required them to keep the existence of the agreement confidential. If a departing employee declined to sign the document or violated it, they could lose all vested equity they earned during their time at the company, which is likely worth millions of dollars.