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OpenAI terminates employee over alleged insider trading on prediction markets

In a move underscoring strict internal compliance, OpenAI has dismissed an employee for allegedly using confidential company information to trade on prediction markets. The company confirmed the action to a publication, stating that the employee used non-public OpenAI information in connection with trades placed on platforms such as Polymarket.

OpenAI did not disclose the employee’s identity. However, a spokesperson said the conduct breached company policy, which prohibits staff from using inside information for personal gain, including activity on prediction markets. The company has not shared further details regarding the scope of the trades or the potential gains involved.

Prediction platforms like Polymarket and Kalshi allow users to place wagers on the outcomes of real-world events. On Polymarket, for example, traders are currently betting on what types of products OpenAI might launch in 2026 and when the company could go public. These markets can cover a wide range of events and significant sums are at stake. In a recent case reported by a publication, an accountant secured a $470,300 payout on Kalshi by betting against DOGE supporters.

Prediction market operators maintain that they are not gambling platforms, instead describing themselves as financial exchanges. Kalshi operates as a regulated exchange and recently fined and banned an editor associated with MrBeast over similar alleged insider trading activity earlier this week. OpenAI did not immediately respond to additional requests for comment.

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