OpenAI and a subsidiary have agreed to pay $3.2 million to settle US Justice Department allegations that they discriminated against American workers by favouring foreign employees on temporary work visas. The settlement places the AI company’s hiring practices under scrutiny as competition for technical talent intensifies across the sector.

The Justice Department announced the agreement on Tuesday, though the supplied article text does not specify the period covered or the precise conduct alleged. The newsletter also highlights wider AI policy debates, including proposed government powers to intervene in potentially dangerous AI systems and US concerns about competition with China.