OpenAI has fired an worker following an investigation into their exercise on prediction market platforms together with Polymarket, WIRED has discovered.
OpenAI CEO of Functions, Fidji Simo, disclosed the termination in an inside message to staff earlier this 12 months. The worker, she mentioned, “used confidential OpenAI data in reference to exterior prediction markets (e.g. Polymarket).”
“Our insurance policies prohibit staff from utilizing confidential OpenAI data for private achieve, together with in prediction markets,” says spokesperson Kayla Wooden. OpenAI has not revealed the identify of the worker or the specifics of their trades.
Proof means that this was not an remoted occasion. Polymarket runs on the Polygon blockchain community, so its buying and selling ledger is pseudonymous however traceable. In keeping with an evaluation by the monetary knowledge platform Uncommon Whales, there have been clusters of actions, which the service flagged as suspicious, round OpenAI-themed occasions since March 2023.
Uncommon Whales flagged 77 positions in 60 pockets addresses as suspected insider trades, wanting on the age of the account, buying and selling historical past, and significance of funding, amongst different elements. Suspicious trades hinged on the discharge dates of merchandise like Sora, GPT-5, and the ChatGPT Browser, in addition to CEO Sam Altman’s employment standing. In November 2023, two days after Altman was dramatically ousted from the corporate, a brand new pockets positioned a major guess that he would return, netting over $16,000 in earnings. The account by no means positioned one other guess.
The conduct suits into patterns typical of insider trades. “The inform is the clustering. Within the 40 hours earlier than OpenAI launched its browser, 13 brand-new wallets with zero buying and selling historical past appeared on the location for the primary time to collectively guess $309,486 on the proper consequence,” says Uncommon Whales CEO Matt Saincome. “Whenever you see that many contemporary wallets making the identical guess on the identical time, it raises an actual query about whether or not the key is getting out.”
Prediction markets have exploded in reputation in recent times. These platforms enable clients to purchase “occasion contracts” on the outcomes of future occasions starting from the winner of the Tremendous Bowl to the day by day value of Bitcoin as to if the USA will go to battle with Iran. There are a wide selection of markets tied to occasions within the know-how sector; you possibly can commerce on what Nvidia’s quarterly earnings might be, or when Tesla will launch a brand new automotive, or which AI corporations will IPO in 2026.
Because the platforms have grown, so have considerations that they permit merchants to revenue from insider information. “This prediction market world makes the Wild West look tame as compared,” says Jeff Edelstein, a senior analyst on the betting information website InGame. “If there is a market that exists the place the reply is understood, someone’s going to commerce on it.”
Earlier this week, Kalshi introduced that it had reported a number of suspicious insider buying and selling circumstances to the Commodity Futures Buying and selling Fee, the federal government company overseeing these markets. In a single occasion, an worker of the favored YouTuber Mr. Beast was suspended for 2 years and fined $20,000 for making trades associated to the streamer’s actions; in one other, the far-right political candidate Kyle Langford was banned from the platform for making a commerce on his personal marketing campaign. The corporate additionally introduced a variety of initiatives to forestall insider buying and selling and market manipulation.
Whereas Kalshi has closely promoted its crackdown on insider buying and selling, Polymarket has stayed silent on the matter. The corporate didn’t return requests for feedback.
Prior to now, main trades on technology-themed markets have sparked hypothesis that there are Huge Tech staff profiting through the use of their insider information to realize an edge. One infamous instance is the so-called “Google whale,” a pseudonymous account on Polymarket that remodeled $1 million buying and selling on Google-related occasions, together with a market on who the most-searched individual of the 12 months can be in 2025. (It was the singer D4vd, who’s finest recognized for his connection to an ongoing homicide investigation after a younger fan’s stays have been present in a car registered to him.)
