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OpenAI removes non-disparagement clause after backlash, retains vested equity

OpenAI removed a non-disparagement clause from its exit paperwork after backlash, following reports that former researcher Daniel Kokotajlo forfeited $2 million in vested equity by refusing to sign it. CEO Sam Altman expressed embarrassment over the clause, which he and other executives had approved. The incident has raised concerns about OpenAI's internal stability and reduced market expectations for its IPO.

read1 min views1 publishedJul 13, 2026
OpenAI removes non-disparagement clause after backlash, retains vested equity
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OpenAI’s recent controversy involving a non-disparagement clause in its exit paperwork has sparked significant attention, affecting market perceptions. Daniel Kokotajlo, a former researcher at OpenAI, refused to sign the clause, resulting in the forfeiture of vested equity worth approximately $2 million, a substantial portion of his net worth. OpenAI CEO Sam Altman expressed embarrassment over his initial unawareness of the clause. Leaked documents later revealed Altman and other executives had approved the contentious provision. Following public outcry, OpenAI removed the clause from its standard departure paperwork and confirmed that no former employee would lose vested equity. This incident coincides with a period of internal turmoil at OpenAI, marked by the departure of several key personnel concerned about the company’s approach to AI safety.

Key Takeaways #

  • Market behavior suggests concerns about OpenAI’s internal stability following the disclosure of the non-disparagement clause incident.
  • The likelihood of OpenAI completing an IPO by December 31, 2026, appears to have decreased, with current pricing at 17.5% YES, down from 22%.
  • OpenAI’s recent actions to address the controversy, including revoking the clause, could influence perceptions, but immediate impacts are evident in current market pricing.

What to Watch #

Observers should monitor further statements from OpenAI leadership, especially Sam Altman, as these could impact market sentiments regarding OpenAI’s IPO prospects. Any additional internal changes or clarifications about the company’s governance and operational policies may affect market perceptions. Additionally, any developments or strategic announcements regarding OpenAI’s path to an IPO will be key indicators of future market movements.

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