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Tag: OpenAI

  • Musk clashes with OpenAI CEO Sam Altman over Trump-supported Stargate AI data center project

    Musk clashes with OpenAI CEO Sam Altman over Trump-supported Stargate AI data center project

    Elon Musk is clashing with OpenAI CEO Sam Altman over the Stargate artificial intelligence infrastructure project touted by President Donald Trump, the latest in a feud between the two billionaires that started on OpenAI’s board and is now testing Musk’s influence with the new presidential administration.

    Trump on Tuesday had talked up a joint venture investing up to $500 billion through a new partnership formed by OpenAI, the maker of ChatGPT, alongside Oracle and SoftBank.

    The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House.

    Trump declared it “a resounding declaration of confidence in America’s potential” under his new administration, with an initial private investment of $100 billion that could reach five times that sum.

    But Musk, a close Trump adviser who helped bankroll his campaign and now leads a government cost-cutting initiative, questioned the value of the investment hours later.

    “They don’t actually have the money,” Musk wrote on his social media platform X. “SoftBank has well under $10B secured. I have that on good authority.”

    Altman responded Wednesday to say Musk was “wrong, as you surely know” and inviting Musk to come visit the first site that is already under construction.

    “(T)his is great for the country. i realize what is great for the country isn’t always what’s optimal for your companies, but in your new role i hope you’ll mostly put (America) first,” Altman wrote, using a U.S. flag emoji to represent America.

    The public clash over Stargate is part of a years-long dispute between Musk and Altman that began with a boardroom rivalry over who should run OpenAI, which both men helped found.

    Musk, an early OpenAI investor and board member, sued the artificial intelligence company last year alleging it had betrayed its founding aims as a nonprofit research lab benefiting the public good rather than pursuing profits.

    Musk has since escalated the dispute, adding new claims and asking for a court order that would stop OpenAI’s plans to convert itself into a for-profit business more fully. A hearing is set for early February in a California federal court.

    The world’s richest man, whose companies include Tesla, SpaceX and X, last year started his own rival AI company, xAI, that is building its own big data center in Memphis, Tennessee. Musk says it faces unfair competition from OpenAI and its close business partner Microsoft, which has supplied the huge computing resources needed to build AI systems such as ChatGPT.

    Tech news outlet The Information first reported on an OpenAI data center project called Stargate in March 2024, indicating that it’s been in the works long before Trump announced it.

    Another company — Crusoe Energy Systems — announced in July it was building a large and “specially designed AI data center” outside Abilene, Texas at a site run by energy technology company Lancium. Crusoe and Lancium said in a joint statement at the time that the project was “supported by a multibillion-dollar investment” but didn’t disclose its backers.

    Both companies also said the energy-hungry project would be powered with renewable sources of electricity such as nearby solar farms, in a way that Lancium CEO Michael McNamara said would “deliver the maximum amount of green energy at the lowest possible cost.” Crusoe said it would own and develop the facility.

    It’s not clear how and when that project became the first phase of the Stargate investment revealed by Trump. Oracle co-founder Larry Ellison said Tuesday that the Abilene project is the first of about 10 data center buildings currently being built and that number could expand to 20.

    Missing from Trump’s press conference Tuesday was Microsoft, which has long supported OpenAI with billions of dollars in investments and enabling its data centers to be used to build the models behind ChatGPT and other generative AI tools.

    Microsoft said this week it is also investing in the Stargate project but put out a statement noting that its OpenAI partnership will “evolve” in a way that enables OpenAI “to build additional capacity, primarily for research and training of models.”

    Asked about Musk’s comments about the Stargate deal Wednesday during a CNBC interview at the World Economic Forum in Davos, Switzerland, Microsoft CEO Satya Nadella pivoted to his company’s own $80 billion plan to build out its global AI infrastructure, of which $50 billion is being spent in the U.S.

    “Look, all I know is, I’m good for my $80 billion,” said Nadella, laughing.

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  • Canadian news publishers sue OpenAI over alleged copyright infringement

    Canadian news publishers sue OpenAI over alleged copyright infringement

    OTTAWA, Ontario — A coalition of Canadian news publishers, including The Canadian Press, Torstar, Globe and Mail, Postmedia and CBC/Radio-Canada, has filed a lawsuit against OpenAI for using news content to train its ChatGPT generative artificial intelligence system.

    The outlets said in a joint statement on Friday that OpenAI regularly breaches copyright by scraping large amounts of content from Canadian media.

    “OpenAI is capitalizing and profiting from the use of this content, without getting permission or compensating content owners,” the statement said.

    The publishers argue that OpenAI practices undermine the hundreds of millions of dollars invested in journalism, and that content is protected by copyright.

    “News media companies welcome technological innovations. However, all participants must follow the law, and any use of intellectual property must be on fair terms,” the statement said.

    Generative AI can create text, images, videos and computer code based on a simple prompt, but the systems must first study vast amounts of existing content.

    OpenAI said in a statement that its models are trained on publicly available data. It said they are “grounded in fair use and related international copyright principles that are fair for creators and support innovation.”

    The company said it collaborates “closely with news publishers, including in the display, attribution and links to their content in ChatGPT search” and offers outlets “easy ways to opt-out should they so desire.”

    This is the first such case in Canada, though numerous lawsuits are underway in the United States, including a case by the New York Times against OpenAI and Microsoft.

    Some news organizations have chosen to collaborate rather than fight with OpenAI by signing deals to get compensated for sharing news content that can be used to train its AI systems.

    The Associated Press is among the news organizations that have made licensing deals over the past year with OpenAI. Others include The Wall Street Journal and New York Post publisher News Corp., The Atlantic, Axel Springer in Germany and Prisa Media in Spain, France’s Le Monde newspaper and the London-based Financial Times.

    Canada has passed a law requiring Google and Meta to compensate news publishers for the use of their content, but has previously declined to say whether the Online News Act should apply to use by AI systems.

    In response to that legislation, Meta pulled news from its platforms in Canada, while Google has reached a deal to pay $100 million Canadian (US$ 71 million) to Canadian news outlets.

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  • ChatGPT maker OpenAI raises $6.6 billion in fresh funding as it moves away from its nonprofit roots

    ChatGPT maker OpenAI raises $6.6 billion in fresh funding as it moves away from its nonprofit roots

    OpenAI said Wednesday it has raised $6.6 billion in venture capital investments as part of a broader shift by the ChatGPT maker away from its nonprofit roots.

    Led by venture capital firm Thrive Capital, the funding round was backed by tech giants Microsoft, Nvidia and SoftBank, according to a source familiar with the funding who was not authorized to speak about it publicly.

    The investment represents one of the biggest fundraising rounds in U.S. history, and ranks as the largest in the past 17 years that doesn’t include money coming from a single deep-pocketed company, according to PitchBook, which tracks venture capital investments.

    Microsoft pumped up OpenAI last year with a $10 billion investment in exchange for a large stake in the company’s future growth, mirroring a strategy that tobacco giant Altria Group deployed in 2018 when it invested $12.8 billion into the now-beleaguered vaping startup Juul.

    OpenAI said the new funding “will allow us to double down on our leadership in frontier AI research, increase compute capacity, and continue building tools that help people solve hard problems.” The company said the funding gives it a market value of $157 billion and will “accelerate progress on our mission.”

    The influx of money comes as OpenAI has been looking to more fully convert itself from a nonprofit research institute into a for-profit corporation accountable to shareholders.

    While San Francisco-based OpenAI already has a rapidly growing for-profit division, where most of its staff works, it is controlled by a nonprofit board of directors whose mission is to help humanity by safely building futuristic forms of artificial intelligence that can perform tasks better than humans.

    That sets certain limits on how much profit it makes and how much shareholders get in return for costly investments into the computing power, specialized AI chips and computer scientists it takes to build generative AI tools. But the governance structure would change if the board follows through with a plan to convert itself to a public-benefit corporation, which is a type of corporate entity that is supposed to help society as well as turn a profit.

    Along with Thrive Capital, the funding backers include Khosla Ventures, Altimeter Capital, Fidelity Management and Research Company, MGX, ARK Invest and Tiger Global Management.

    Not included in the round is Apple, despite speculation it might take a stronger interest in OpenAI’s future after recently teaming up with the company to integrate ChatGPT into its products.

    Brendan Burke, an analyst for PitchBook, said that while OpenAI’s existing close partnership with Microsoft has given it broad access to computing power, it still “needs follow-on funding to expand model training efforts and build proprietary products.”

    Burke said it will also help it keep up with rivals such as Elon Musk’s startup xAI, which recently raised $6 billion and has been working to build custom data centers such as one in Memphis, Tennessee. Musk, who helped bankroll OpenAI’s early years as a nonprofit, has become a sharp critic of the company’s commercialization.

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    Associated Press writers Michael Liedtke in San Francisco and Kelvin Chan in London contributed to this report.

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    The Associated Press and OpenAI have a licensing and technology agreement that allows OpenAI access to part of AP’s text archives.

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  • OpenAI looks to shift away from nonprofit roots and convert itself to for-profit company

    OpenAI looks to shift away from nonprofit roots and convert itself to for-profit company

    OpenAI’s history as a nonprofit research institute that also sells commercial products like ChatGPT may be coming to an end as the San Francisco company looks to more fully convert itself into a for-profit corporation accountable to shareholders.

    The company’s board is considering a decision that would change the company into a public benefit corporation, according to a source familiar with the discussions who wasn’t authorized to speak publicly about them.

    While OpenAI already has a for-profit division, where most of its staff works, it is controlled by a nonprofit board of directors whose mission is to help humanity. That would change if the company converts the core of its structure to a public benefit corporation, which is a type of corporate entity that is supposed to help society as well as turn a profit.

    No final decision has been made by the board and the timing of the shift hasn’t been determined, the source said.

    OpenAI’s CEO Sam Altman acknowledged in public remarks Thursday that the company is thinking about restructuring but said the departures of key executives the day before weren’t related.

    Speaking at a tech conference in Italy, Sam Altman mentioned that OpenAI has been considering an overhaul to get to the “next stage.” But he said it was not connected to the Wednesday resignations of Chief Technology Officer Mira Murati and two other top leaders.

    “OpenAI will be stronger for it as we are for all of our transitions,” Altman told the Italian Tech Week event in Turin. “I saw some stuff that this was, like, related to a restructure. That’s totally not true. Most of the stuff I saw was also just totally wrong,” he said without any more specificity.

    “But we have been thinking about (a restructuring),” he added. OpenAI’s board has been considering a revamp for a year as it tries to figure out what’s needed to “get to our next stage.”

    OpenAI said Thursday that it will still retain a nonprofit arm.

    “We remain focused on building AI that benefits everyone and as we’ve previously shared we’re working with our board to ensure that we’re best positioned to succeed in our mission,” it said in a written statement. “The nonprofit is core to our mission and will continue to exist.”

    The resignations of Murati, Chief Research Officer Bob McGrew and another research leader, Barret Zoph, were “just about people being ready for new chapters of their lives and a new generation of leadership,” Altman said.

    The exits were the latest in a string of recent high-profile departures that also include the resignations of OpenAI co-founder Ilya Sutskever and safety team leader Jan Leike in May. In a statement, Leike had leveled criticism at OpenAI for letting safety “take a backseat to shiny products.”

    Much of the conflict at OpenAI has been rooted in its unusual governance structure. Founded in 2015 as a nonprofit with a mission to safely build futuristic AI to help humanity, it is now a fast-growing big business still controlled by a nonprofit board bound to its original mission.

    This unique structure made it possible for four OpenAI board members — Sutskever, two outside tech entrepreneurs and an academic — to briefly oust Altman last November in what was later described as a dispute over a “significant breakdown in trust” between the board and top executives. But with help from a powerful backer, Microsoft, Altman was brought back to the CEO role days later and a new board replaced the old one. OpenAI also put Altman back on the board of directors in May.

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    The Associated Press and OpenAI have a licensing and technology agreement that allows OpenAI access to part of AP’s text archives.

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