oversight

WASHINGTON — The chair of the House Oversight Committee has sent a letter to OpenAI Chief Executive Sam Altman requesting information about potential conflicts of interest between Altman’s personal investments and his operation of the company.

The letter, sent Friday, comes amid a high-stakes legal battle currently playing out in an Oakland federal courtroom between one-time partners Altman and Elon Musk, the world’s richest man, who in 2015 co-founded the AI company best known for creating ChatGPT.

The company was first established solely as a non-profit corporation and the letter sent to Altman by Rep. James Comer (R-Ky.), the Republican chair of the Oversight committee, indicates that the committee is “investigating potential conflicts of interest involving capital from nonprofit corporations invested in startups and other for-profit companies.”

Comer has requested by May 22 a briefing from the company official responsible for oversight of potential conflicts involving company officers and directors, including Altman, as well as all documents related to conflict of interest policies and guidance for those executives.

While OpenAI was created as a non-profit designed to responsibly harness the power of the emerging artificial intelligence technology, the company created a for-profit subsidiary in 2019 and three years later released ChatGPT, which jumpstarted widespread adoption of the technology.

Musk, the chief executive of Tesla, left Open AI’s board in 2018, one year before the creation of the for-profit arm. He is arguing that Altman and another co-founder, Greg Brockman, betrayed the original mission of the non-profit organization, driven by their desire to “cash in” on the technology.

Musk added Microsoft, a significant investor in OpenAI, to the lawsuit in 2024. OpenAI is rumored to be gearing up to go public later this year or early next, and was recently valued at $852 billion.

Musk has said that he invested $38 million in the OpenAI non-profit, but he does not stand to benefit from a potential OpenAI public offering.

He created a rival company xAI in 2023 that was later folded into his company SpaceX

In the lawsuit, Musk is seeking $150 billion in damages, for Altman to be removed from the company and for the company to be fully returned to its non-profit status.

Musk’s complaint also alleges that Altman engaged in self-dealing by directing OpenAI to pursue deals with companies in which he also held a personal stake, including nuclear fusion power company Helion.

Comer’s letter cites reporting that Altman’s pursuit of a Helion deal, which is still ongoing, would come at a lofty valuation of the power-company, boosting the company’s worth, and the value of Altman’s investment.

Altman was briefly forced to step down from leadership of OpenAI in 2023 in part due to concerns about potential conflicts between his personal investments and his operation of the company, but was soon reinstated.

While the company’s board created an audit committee to investigate the potential conflicts of Altman and other officers, the findings were never disclosed.

Comer has requested that Altman turn over all documents and communication related to that audit committee.

Representatives for OpenAI did not immediately respond to requests for comment.

May 6 (UPI) — Commerce Secretary Howard Lutnick is scheduled to testify Wednesday before the House Oversight Committee on his ties to Jeffrey Epstein.

The testimony is voluntary and behind closed doors. Lutnick is one of many people called before the committee to explain their ties to the late sex offender and financier.

“The Secretary looks forward to addressing any questions on the record when he testifies voluntarily before the Oversight Committee,” a spokesperson for the Commerce Department told CBS News. “He looks forward to putting to rest the inaccurate and baseless claims in the media designed to distract from his historic work underway at the Commerce Department.”

Lutnick has not been accused of any wrongdoing tied to Epstein.

Lutnick and Epstein were next-door neighbors in New York. He has said his interactions with Epstein were minimal, but earlier this month, he told a congressional committee that he had visited Epstein’s island, Little St. James in the U.S. Virgin Islands, with his family.

“We had lunch on the island, that is true, for an hour,” Lutnick told lawmakers. “Then we left with all of my children, with my nannies and my wife all together. We were on family vacation. We were not apart. To suggest there was anything untoward about that in 2012, I don’t recall why we did it. But we did.”

Epstein was convicted of solicitation involving a minor in 2008.

A photo of Lutnick and Epstein that appears to be on Little St. James with three other men was in the files released earlier this year.

Lutnick and Epstein also invested together in a now-shuttered advertising agency, Adfin, working together as late as 2014.

Lutnick previously claimed that he cut contact with Epstein in 2005

In October, Lutnick said on a podcast that he and his wife, Allison, visited Epstein’s New York townhouse in 2005, NBC News reported.

He said he saw a massage table in the middle of a room filled with candles. Lutnick said Epstein told him he had massages “every day” and got “weirdly close” to say, “The right kind of massage.”

“In the six to eight steps it takes to get from his house to my house, my wife and I decided that I will never be in the room with that disgusting person ever again,” Lutnick said.

“I was never in the room with him socially, for business, or even philanthropy,” he added. “If that guy was there, I wasn’t going, because he’s gross.”

The panel will likely question Lutnick’s credibility, Matt Dallek, a historian and political management professor at George Washington University, told NBC

“It’s risky business for him to go before Congress and testify about Epstein,” Dallek said. “Because lo and behold, he visited the island with his kids.”

Dallek said Trump will pay attention to Lutnick’s performance.

“If Lutnick comes off as wishy-washy or ineffective, Trump could sour on him,” Dallek said. “Especially if he wants a fall guy for the economy.”

May 5 (UPI) — The Center for AI Standards and Innovation, part of a U.S.government agency, announced Tuesday that it will test artificial intelligence models from some top firms before release to vet them for security risks.

CAISI has deals with Microsoft, xAI and Google DeepMind for this testing and targeted research “to better assess frontier AI capabilities and advance the state of AI security,” it said in a release. The center is part of the U.S. Department of Commerce’s National Institute of Standards and Technology.

This follows similar deals in 2024, under the Biden administration, with prominent AI leaders OpenAI and Anthropic, which have been “renegotiated” to fit Trump administration directives, Politico reported.

The government has increasingly shown interest in matters of AI technology and security. CNBC also reported Tuesday that the Trump administration is considering an executive order to create a process for AI oversight by the White House.

Some of this interest has been heightened by the announcement last month of Anthropic’s new Mythos AI model. The company described the model as excelling “at identifying weaknesses and security flaws within software” and limited its initial use to certain companies. These companies, including Amazon and Microsoft, will use it as part of defensive security work and as part of Project Glasswing, a cybersecurity initiative, Anthropic said.

The announcement Tuesday from CAISI said that the center has completed more than 40 evaluations of AI models so far.

“Independent, vigorous measurement science is essential to understanding frontier AI and its national security implications,” CAISI director Chris Fell said in a statement. “These expanded industry collaborations help us scale our work in the public interest in a critical moment.”

WASHINGTON — The Republican chair of the House Oversight Committee said some of its members would support a presidential pardon for convicted sex trafficker Ghislaine Maxwell in exchange for her assistance in the committee’s investigation into Jeffrey Epstein.

But good luck getting any of them to admit it.

Rep. James Comer (R-Ky.) told Politico Wednesday that “a lot of people” support the idea of Maxwell receiving a pardon from President Trump in exchange for her cooperation in the committee’s investigation.

Although Comer said he opposed a pardon himself — “other than Epstein, the worst person in this whole investigation is Maxwell” — he offered that his committee was “split” on the issue.

Rep. Robert Garcia of Long Beach, the top Democrat on his committee, condemned the idea of a Maxwell pardon and said Democrats on the committee uniformly oppose it.

“It’s outrageous that Republicans on the Oversight Committee are considering a pardon for Ghislaine Maxwell,” Garcia said in a statement. “She is a sexual abuser who facilitated the rape of women and children.”

The Times reached out to all 26 Republicans on the committee to see who, if anyone, supported the idea of a pardon.

Although most didn’t respond, the few who did expressed outrage at the idea.

“I am absolutely not supporting a pardon for her nor have I heard that from anyone else,” said Rep. Anna Paulina Luna (R-Fla.).

“Never in a thousand years,” said Rep. Clay Higgins (R-La.).

Maxwell declined to answer the committee’s questions during a video deposition in February from the Texas federal prison where she is serving her 20-year prison sentence.

She is still challenging her 2021 conviction on five counts related to the sex trafficking of minors for her role in recruiting and grooming girls for Epstein to abuse. She was accused at trial of also participating in the abuse of one victim.

At the time of her February deposition, Maxwell’s attorney David Oscar Markus said she would offer the “unfiltered truth” if granted clemency by Trump.

Attorneys who have represented victims abused by Epstein and Maxwell strongly opposed the idea of a pardon.

“This is a woman who belongs behind bars for the rest of her life for what she did to women,” said Spencer Kuvin, who has represented numerous Epstein victims.

Sigrid McCawley, a managing partner at Boies Schiller Flexner, questioned the value of information Maxwell could provide.

“Ghislaine Maxwell is a proven self-serving liar,” McCawley said in a statement. “There is nothing credible that she will offer the government, and the assertion that she would provide information is simply a smoke screen.”

Trump has not said he is considering a pardon but when asked by reporters he has declined to rule it out.

Epstein abused more than 1,000 girls and young women over the span of decades. He negotiated a lenient deal nearly two decades ago with federal prosecutors in south Florida that allowed him to serve 13 months in a Palm Beach County jail where he was allowed to come and go freely to settle claims that he had abused dozens of high school girls.

Following investigative reporting on that deal by the Miami Herald, federal prosecutors in the Southern District of New York brought new sex charges against Epstein in July 2019. He died in federal custody one month later.

Epstein and Maxwell counted members of the British royal family, multiple presidents and business titans among their friends.

They have been accused of forcing some of their victims to have sex with some of those men. But Maxwell is the only other person who has ever been charged in connection with Epstein’s crimes.

The committee has deposed numerous people who knew Epstein, including Ohio billionaire Les Wexner, who hired Epstein to manage his finances, and former President Clinton and former Secretary of State Hillary Clinton.

The committee has not, however, deposed Trump, who once famously called Epstein a “terrific guy” and said, “I just wish her well,” when told of Maxwell’s arrest in 2020.

The Department of Justice has also released millions of pages of documents from its investigations into the deceased sex offender in response to the bipartisan Epstein Files Transparency Act, which was signed into law last year.

The release of the files has led to criminal inquiries in the United Kingdom into Andrew Mountbatten-Windsor, the former prince, and Peter Mandelson, the former British ambassador to the United States, over allegations that they provided secret government information to Epstein.

So far, the files have not led to any publicly known criminal investigations in the United States.