OpenAI’s legal problems pile up

by MMC
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Musk says the AI ​​startup’s pact with Microsoft betrayed its nonprofit mission.

Its lawyers accuse OpenAI of creating artificial general intelligence to “maximize Microsoft’s profits, rather than for the benefit of humanity.”

Wednesday, The Wall Street Journal reported that the Securities and Exchange Commission was investigating whether OpenAI misled investors.

This investigation follows a shocking leadership shake-up at the company in November after Sam Altman was briefly ousted — along with the company’s board saying the CEO had not been “always frank in his communications.” (It was reinstalled about two weeks later and the board was redesigned.)

The Journal reported on the SEC investigation after OpenAI nearly tripled its valuation to around 80 billion dollars earlier this month following an agreement allowing employees to withdraw their shares.

OpenAI has also been the subject of copyright infringement complaints.

In December, the New York Times filed a complaint against OpenAI and Microsoft, alleging that Times articles were used to train chatbots. OpenAI retaliate Wednesday, claiming in court filings that the Times paid someone to “hack” its platforms and game them to generate misleading evidence.

A group of writersincluding Jonathan Franzen, John Grisham and George RR Martin, have also filed copyright suits against OpenAI.

That’s not all. British regulators are investigating the antitrust issues surrounding the relationship between OpenAI and Microsoft. In the United States, the Federal Trade Commission spear a January investigation into OpenAI and four other tech giants to determine “their impact on the competitive landscape.”

In July, the FTC also started investigating OpenAI on data and privacy issues to determine whether the company was violating consumer protection laws.

As legal issues continue to arise, any losses on fronts such as copyright, competition or user privacy could undermine OpenAI’s work and give the company’s many competitors a leg up. company in the AI ​​arms race.

OpenAI did not immediately respond to a request for comment.

Meanwhile, OpenAI continues to roll out products such as Sora – a tool that can generate eerily realistic videos from input text. A web search product competing with Google is also in the works, The Information reported.

Axel Springer, the parent company of Business Insider, has struck a global deal to allow OpenAI to train its models on reports from its media brands.

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