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Update: Market Chatter: DOJ Says OpenAI Agrees to Settle Worker Discrimination Claims

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(Updates with OpenAI's response to a request for comment in the penultimate paragraph and the Justice Department's official statement in the last paragraph.)

Microsoft-backed (MSFT) OpenAI has agreed to pay $1.2 million in civil penalties and create a $2 million compensation fund to settle allegations that its unit discriminated against US workers, Bloomberg reported Tuesday, citing a statement from the US Justice Department.

"While we disagree with the DOJ's findings, we reached this agreement to resolve the matter and move forward with our PERM program, which is critical for employees and candidates requiring immigration support," an OpenAI spokesperson toldvia email.

"It is illegal to discriminate against U.S. workers by preferring temporary visa holders for jobs," said Assistant Attorney General Harmeet K. Dhillon of the Justice Department's Civil Rights Division in a statement. "This substantial settlement ensures that OpenAI redresses harm and changes its recruitment practices so that U.S. workers receive a fair opportunity for highly sought-after technology positions."

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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