OpenAI, a leading AI company, recently terminated an employee due to their involvement in insider trading on prediction market platforms such as Polymarket, according to a report by WIRED. The dismissed employee allegedly utilized confidential OpenAI information for personal gain, a violation of the company’s policies.
OpenAI’s CEO, Fidji Simo, confirmed the termination in an internal communication earlier this year. The company’s spokesperson, Kayla Wood, stated that OpenAI strictly prohibits employees from exploiting internal data in external prediction markets.
Reports indicate a series of suspicious activities surrounding OpenAI-related events on Polymarket’s blockchain network. Unusual Whales, a financial data platform, flagged 77 positions across 60 wallet addresses as potential insider trades. Noteworthy trades coincided with significant company announcements like product launches and executive changes.
The employee in question was linked to trades involving predictions on events such as the release of Sora, GPT-5, and the ChatGPT Browser, as well as the employment status of CEO Sam Altman. For instance, following Altman’s departure in 2023, a profitable bet on his return was placed within days, raising red flags.
These activities align with typical patterns of insider trading, characterized by suspicious clustering of trades before major company events. The incident underscores the challenges of monitoring and preventing insider trading in the evolving landscape of prediction markets.
Source: WIRED