I doubt the reason for his ousting was fraud-related, but if it was I think it’s unlikely to be viewed as securities fraud simply because OpenAI hasn’t issued any public securities. I’m not a securities lawyer, but my hunch is even if you could prosecute Altman for defrauding e.g. Microsoft shareholders, it would be far easier to sue directly for regular fraud.
MSFT market cap dropped about $40B in a 15 minute period on the news, so maybe someone can argue securities fraud on that basis? I dunno, I look forward to the inevitable Matt Levine article.
I doubt the reason for his ousting was fraud-related, but if it was I think it’s unlikely to be viewed as securities fraud simply because OpenAI hasn’t issued any public securities. I’m not a securities lawyer, but my hunch is even if you could prosecute Altman for defrauding e.g. Microsoft shareholders, it would be far easier to sue directly for regular fraud.
MSFT market cap dropped about $40B in a 15 minute period on the news, so maybe someone can argue securities fraud on that basis? I dunno, I look forward to the inevitable Matt Levine article.