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OpenAI is reinstating CEO Sam Altman to its board of directors and said it has “full confidence” in his leadership after the conclusion of an outside investigation into the company's turmoil. After months of investigation, it found that Altman's ouster was a “consequence of a breakdown in the relationship and loss of trust” between him and the prior board, OpenAI said in a summary of the findings Friday. The investigation found the prior board acted within its discretion. “The review concluded there was a significant breakdown in trust between the prior board, and Sam and Greg,” Bret Taylor, the board’s chair, told reporters Friday. After it retained the law firm in December, OpenAI said WilmerHale conducted dozens of interviews with the company’s prior board, current executives, advisers and other witnesses.
Persons: Sam Altman, Altman, OpenAI, Sue Desmond, Hellman, Melinda Gates, Nicole Seligman, Fidji Simo, “ I’m, ” Altman, he’s, , Helen Toner, Tasha McCauley, , Greg Brockman, ” OpenAI, Brockman, Greg, ” Bret Taylor, Taylor, Microsoft —, Toner, McCauley, Ilya Sutskever, Sutskever, Ilya, Elon Musk, Larry Summers, Adam D’Angelo, WilmerHale, WilmerHale didn't, Musk, ” Taylor Organizations: Sony, San, OpenAI, Microsoft, Georgetown University, RAND Corporation, Facebook, Elon, U.S ., Associated Press Locations: San Francisco, U.S
Sam Altman, CEO of OpenAI, attends the 54th annual meeting of the World Economic Forum, in Davos, Switzerland, on Jan. 18, 2024. OpenAI on Friday announced its new board and the wrap-up of an internal investigation by U.S. law firm WilmerHale into the events leading up to OpenAI CEO Sam Altman's ouster. Sam Altman will also rejoin OpenAI's board. "We have unanimously concluded that Sam and Greg are the right leaders for OpenAI," Bret Taylor, chair of OpenAI's board, said in a release. Since then, OpenAI has announced new board members, including former Salesforce co-CEO Bret Taylor and former Treasury Secretary Larry Summers.
Persons: Sam Altman, OpenAI, WilmerHale, Sam Altman's, OpenAI's, Sue Desmond, Hellmann, Melinda Gates, Nicole Seligman, Fidji Simo, Adam D'Angelo, Larry Summers, Bret Taylor, Greg, Sam, Taylor, Altman, Bret, Larry, Mira Murati, Mira, Helen Toner, Tasha McCauley, Ilya Sutskever, Ilya, Elon Musk, Greg Brockman, Musk, , Toner, McCauley, Altman's Organizations: Economic, Friday, Melinda Gates Foundation, Pfizer, Advisors, Science, Technology, Global, Sony, Sony Entertainment, Paramount Global, Meira, Inc, Shopify, OpenAI, Microsoft, Fortune, Lawyers, CNBC, SpaceX, Nvidia Locations: Davos, Switzerland, President's, OpenAI's San Francisco, U.S, Saudi Aramco
The AI tool now also blocks requests to generate images of teenagers or kids playing assassins with assault rifles — a marked change from earlier this week — stating, "I'm sorry but I cannot generate such an image. There is also a warning about multiple policy violations leading to suspension from the tool, which CNBC had not encountered before Friday. Microsoft has started to make changes to its Copilot artificial intelligence tool after a staff AI engineer wrote to the Federal Trade Commission Wednesday regarding his concerns about Copilot's image-generation AI. Shane Jones, the AI engineering lead at Microsoft who initially raised concerns about the AI, has spent months testing Copilot Designer, the AI image generator that Microsoft debuted in March 2023, powered by OpenAI's technology. All of those scenes, generated in the past three months, were recreated by CNBC this week using the Copilot tool, originally called Bing Image Creator.
Persons: Shane Jones, OpenAI's DALL, Jones, lacy, Elsa, Lina Khan Organizations: CNBC, Microsoft, Federal Trade, Disney, Palestinian, Israeli Defense Forces, Commerce, Science, Transportation, FTC Locations: Gaza
CEO Sam Altman will be reinstated to OpenAI's board of directors. Bret Taylor, chair of OpenAI's board, said members "unanimously concluded" Altman is right to lead the company. The AI startup will also bring on three additional new board members, the company announced. AdvertisementOpenAI CEO Sam Altman is set to return to OpenAI's board of directors, the company announced Friday. "We have unanimously concluded that Sam and Greg are the right leaders for OpenAI," Bret Taylor, chair of the OpenAI board, said in a statement released Friday.
Persons: Sam Altman, Bret Taylor, Altman, , Ilya Sutskever, Adam D'Angelo, Tasha McCauley, Helen Toner, Sam, Greg, Toner, McCauly, Sutskever, Elon Musk, OpenAI, Melinda Gates, Sue Desmond, Hellman, Nicole Seligman, Fidji Simo Organizations: Service, OpenAI, Elon, Melinda Gates Foundation, Sony Entertainment, Business Locations: OpenAI, xAI
In today's big story, we're looking at Sam Altman's sprawling AI empire amid his beef with Elon Musk . AdvertisementBut first, the sun never sets on Sam Altman's AI empire. OpenAI CEO Sam Altman was thrust into the mainstream consciousness with the release of ChatGPT in 2022. Elon Musk and Sam Altman Michael M. Santiago/Getty, Nordin Catic/Getty, Tyler Le/BIThere is another tech billionaire whose vision exceeds a singular company. But unlike Musk, Altman has, somewhat incredibly, mostly skirted controversy (save for his ouster-then-return saga ).
Persons: , There's, Sam Altman's, Elon Musk, Alastair Grant, Rebecca Zisser, Sam Altman, Altman, Darius Rafieyan, Sam Altman Michael M, Nordin Catic, Tyler Le, Elon, Musk, OpenAI, execs, Altman isn't, Robert Downey Jr, Tony Stark, Goldman Sachs, Jenny Chang, Rodriguez, Neema Raphael, Goldman's, Jerome Powell, Powell, Li Qiang's, Xi Jinping, Fernando Gutierrez, leapfrog, Ridley Scott's, Napoleon, BI's Peter Kafka, Elon Musk's, Joe Biden, Dan DeFrancesco, Hallam Bullock, Jordan Parker Erb, George Glover Organizations: Service, Elon, Business, OpenAI, Microsoft, Goldman, Beijing, Nvidia, leapfrog Apple, Apple, Google, FTC, Facebook, Variety, Tesla, Costco, Kroger, Digital Locations: China, Delaware, New York, London
Tech insiders are cashing out during the AI-fueled stock rally
  + stars: | 2024-03-06 | by ( Yun Li | ) www.cnbc.com   time to read: +4 min
Nvidia Nvidia is the leader of the pack with shares surging more than 70% year to date, following a nearly 240% advance last year. A number of directors at the company sold shares in late February amid the fierce rally. NVDA 1Y mountain Nvidia Nvidia has been the primary beneficiary of the recent technology industry obsession with large artificial intelligence models, which are developed on the company's pricey graphics processors for servers. Meta Platforms Meta CEO Mark Zuckerberg trimmed his stake in separate sales over the past week. Satya Nadella (CEO) sold 1,300 shares on March 1 Bradford L. Smith (vice chair and president) sold 48,300 shares in early February.
Persons: Mark Stevens, Michael McCaffery, Mark Perry, Harvey Jones, Mark Zuckerberg, Zuckerberg, Meta's, Sherman Tuan, George Kao, Don Clegg, Lisa Su, Darla M, Smith, Mark Papermaster, Satya Nadella Organizations: Nvidia, Nvidia Nvidia, Microsoft, Whirlpool, AMD, Microsoft Microsoft, Bradford, Amazon Web Services
The problem: Conventional scorekeeping for chip companies may miss the scale of Nvidia's opportunity ahead. NVDA 1Y mountain Nvidia's stock performance over the past 12 months. "Health care will be the largest technology industry in the coming years," Powell predicted at the TD Cowen conference. However, Powell said Nvidia's previous work on autonomous driving help the company's push into new corners of that market. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Persons: Morgan Stanley's, Colette Kress, Kress, Kimberly Powell, Powell, Cowen, haven't, Nvidia's, it's, Jim Cramer's, Jim Cramer, Jim, Justin Sullivan Organizations: Nvidia, Management, CNBC Locations: U.S
"The chances of someone abusing this technology today is likely already happening," said Jay Madheswaran, CEO and co-founder of AI legal case assistant Eve. This is a threat to the judicial system around the world. The risk of alteration in the judicial processIn addition to the risk of altered evidence, streamlining court reporting with AI opens up the doors to alteration. Traditional court reports take an oath of accuracy and impartiality, something that could be lost with AI without appropriate legislation. According to the National Artificial Intelligence Act of 2020, AI can "make predictions, recommendations or decisions influencing real or virtual environments."
Persons: Sora, Jay Madheswaran, Sarah Thompson, Thompson, Kristin Anderson, Melissa Buchman, Madheswaran, deepfakes Organizations: National Court Reporters Association, Los Angeles San, Los Angeles San Francisco Daily Journal, Stanford University, Federal, MIT, Northwestern, National Artificial Intelligence, deepfakes, Pew Research Center Locations: Judicial, Denton County , Texas, California, Los Angeles San Francisco, American
Meta's hefty investment in artificial intelligence includes development of an AI system designed to power Facebook's entire video recommendation engine across all its platforms, a company executive said Wednesday. Tom Alison, the head of Facebook, said part of Meta's "technology roadmap that goes to 2026" involves developing an AI-recommendation model that can power both the company's TikTok-like Reels short video service and more traditional, longer videos. To date, Meta has typically used a separate model for each of its products, like Reels, Groups and the core Facebook Feed, Alison said onstage at Morgan Stanley's tech conference in San Francisco. As part of Meta's ambitious foray into AI, the company has been spending billions of dollars on Nvidia graphics processing units, or GPUs. They've become the primary chips used by AI researchers for training the types of large language models (LLMs) used to power OpenAI's popular ChatGPT chatbot and other generative AI models.
Persons: Tom Alison, Alison, Morgan Stanley's, They've, Meta Organizations: Facebook, Meta Locations: San Francisco, LLMs
Ilya Sutskever, chief scientist at OpenAI, signed the company's response to a lawsuit brought by Elon Musk. After Altman's return, Sutskever was removed from OpenAI's board, with his future at the company uncertain. AdvertisementAfter OpenAI's board fired Altman, Musk defended Sutskever on X , writing, "Ilya has a good moral compass and does not seek power. Sutskever figures prominently in OpenAI's response to the Musk lawsuit, which includes several email exchanges between Musk, Sutskever, Altman, and Greg Brockman, another OpenAI cofounder. Given Sutskever's role in drafting OpenAI's response to the lawsuit, it is unlikely that Musk's offer of employment still stands.
Persons: Ilya Sutskever, Elon Musk, Sutskever, Sam Altman's, , Elon, Sam Altman, Altman, Ilya, Altman's, OpenAI, Musk, Greg Brockman Organizations: Service, Microsoft Locations: OpenAI
AdvertisementJones claimed in the letter that Microsoft's AI image generator can add "harmful content" to images that can be created using "benign" prompts. Jones, Microsoft, and the FTC didn't immediately respond to Business Insider's request for comment before publication. AdvertisementThis isn't the first time Shane publicly vocalized his concerns about Microsoft's AI image generator. Microsoft isn't the only major tech company that's been slammed for its AI image generator. "In a competitive race to be the most trustworthy AI company, Microsoft needs to lead, not follow or fall behind," he wrote.
Persons: , Shane Jones, Jones, Vader, FTC didn't, Shane, OpenAI's ChatGPT, Demis Organizations: Service, Microsoft, Federal Trade Commission, Copilot, Business, LinkedIn, Star, CNBC, FTC, Google, Gemini
In the AI company's bombshell blog posted Tuesday night, OpenAI claimed Musk, who helped found OpenAI, "wanted the company to merge with Tesla or wanted full control." The blog post was a response to Musk's suit, which argues that OpenAI has jeopardized its nonprofit mission by partnering with Microsoft. In an attempt to set the record straight, OpenAI posted a series of emails from Musk that appear to show Musk supported OpenAI's pivot toward creating a for-profit entity. According to OpenAI's post, Musk wanted majority equity, board control, and to be CEO. AdvertisementMusk has been speaking out against OpenAI for a while, but recently ramped up his criticism of its mission.
Persons: , OpenAI, Musk, Ilya Sutskever, Tesla, we've Organizations: Service, Elon, Tesla, Business, Microsoft, Apple, Google, xAI Corp, Musk, OpenAI
Read previewWhen it comes to OpenAI, Elon Musk is not afraid to go for the jugular. He addressed his personal relationship with Musk directly in a memo sent to employees shortly after the lawsuit was filed. Though he said he'd considered Musk a personal hero, he expressed disappointment that Musk wasn't on OpenAI's side. AdvertisementThe Journal reported cited people close to Musk, who said Musk was jealous of OpenAI's success in the AI race. Representatives for Musk and Altman did not immediately respond to a request for comment from Business Insider, made outside normal working hours.
Persons: , Elon Musk, Sam Altman, Altman, Greg Brockman, Ilya Sutskever, OpenAI, execs, we've, Lex Fridman, Musk, Kara Swisher, he'd Organizations: Service, OpenAI, Business, Microsoft, Elon, Street Journal, Musk Locations: Elon
The emails could undermine Musk's lawsuit against the AI venture, experts told BI. The AI company on Tuesday released a slew of emails that it claims were sent between Musk and its other founders. Meanwhile, OpenAI might still pay a price for Musk's lawsuit in the form of lost time and resources. Advertisement"I think Musk's lawsuit is already doing what he intended," Hoffman said. "Change your name to ClosedAI and I will drop the lawsuit," Musk wrote on X.Musk's lawsuit comes after the billionaire launched his own AI company last year.
Persons: OpenAI, Elon Musk, , Elon, Musk, hadn't, Samuel Brunson, Brunson, David Hoffman, Hoffman, Kyle Lawrence, Falcon Rappaport, Berkman, Lawrence, he'd, Tesla Organizations: Elon, Service, Business, Loyola University, University of Pennsylvania, OpenAI Locations: OpenAI
By contrast, Musk appeared to discourage OpenAI co-founders from taking a too-lean approach to fundraising, according to emails the company reproduced from December 2018. The startup also said in its blog post that Musk sought to become OpenAI's CEO in 2017 as it was changing its structure. In emails from January 2018 reproduced by OpenAI, Musk agrees with an unnamed sender who encouraged the startup's co-founders to rely on Tesla as their "cash cow." CNBC has not independently verified the authenticity of the emails included in OpenAI's response on Tuesday, some of which contained partial redactions. Attorneys for Elon Musk were not available to comment on Tuesday night after OpenAI published its response.
Persons: Elon Musk, Musk, OpenAI, Sam Altman, Greg Brockman, , Google's, Sutskever, Brockman, Altman, Tesla, xAI, Elon, OpenAI isn't, — CNBC's Jordan Novet Organizations: SpaceX, Microsoft, The New York Times, X Corp, CNBC, Elon Locations: OpenAI
The tool is derived from another AI image-generator, DALL-E 3, made by Microsoft's close business partner OpenAI. His letter to Microsoft urges the company to take it off the market until it is safer. “Many of the issues with Copilot Designer are already addressed with ChatGPT's own safeguards,” he said via text. A number of impressive AI image-generators first came on the scene in 2022, including the second generation of OpenAI's DALL-E 2. Google has temporarily suspended its Gemini chatbot's ability to generate images of people following outrage over how it was depicting race and ethnicity, such as by putting people of color in Nazi-era military uniforms.
Persons: Shane Jones, Jones, Microsoft's, OpenAI, , Lina Khan, , OpenAI's DALL, ChatGPT — Organizations: Microsoft, Associated Press, U.S, Senate, Federal Trade Commission, CNBC, Senate's, Google Locations: , Washington
download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. The company has been defending itself against fierce backlash sparked by its AI chatbot's image-generating feature. The product has landed Google at the center of what was described in some circles as a "woke" culture war. AdvertisementGoogle's 'Gemini era' is all about GPT-4Pichai claimed late last year Google was entering its "Gemini era." The model is widely seen as the company's answer to OpenAI's GPT-4, a product heavily backed by Microsoft and already powering many of the company's AI products.
Persons: , execs, Critics, Andrés, Sergey Brin, Sundar Pichai, Brin, Alex Heath, Heath, Pichai, OpenAI's, Google's Bard, Bing, Gvirtz, Sandra Wachter, Wachter Organizations: Service, Google, Business, Big Tech, King's Business School, Engineers, Gemini, Microsoft, chatbots, Financial, Oxford Internet Institute
OpenAI cofounder Wojciech Zaremba called Elon Musk and Sam Altman's ongoing feud "unnecessary." Several OpenAI cofounders fired back against Musk in a blog post on the company's website. AdvertisementOpenAI cofounder Wojciech Zaremba said it's been "sad" to witness Elon Musk and Sam Altman engage in an "unnecessary fight." Elon wanted majority equity, initial board control, and to be CEO. "Elon wanted majority equity, initial board control, and to be CEO.
Persons: Wojciech Zaremba, Elon Musk, Sam Altman's, Sam Altman, cofounders, , it's, Musk, OpenAI, Zaremba, we've, Musk's, Elon, OpenAI didn't Organizations: Elon, OpenAI, Service, Microsoft
"Customers trust Microsoft more than OpenAI since they already buy Microsoft's ecosystem," a Microsoft AI researcher told BI. "Almost everyone I know is working on Copilot to a certain extent," the Microsoft AI researcher told BI. "It's too premature to assume this is going to be a race to the bottom on price," another Microsoft executive said. Some Microsoft employees work so closely with OpenAI that they have badges to get into OpenAI's offices, and some OpenAI employees can badge into Microsoft locations. Mistral models will be offered to Microsoft customers along with about 1,600 other models including Cohere and Meta's Llama.
Persons: there's, Morgan Stanley, Satya Nadella, they've, they're, Frank Shaw, Shaw, That's, OpenAI, JPMorgan Chase, It's, Dentsu, Shiva Vannavada, Vannavada, Eric Boyd, Scott, John Montgomery, Asha Sharma, Ashley Stewart Organizations: Microsoft, Business, Enterprise, Walmart, JPMorgan, BI, Google, Dentsu, Product, Technology, Employees, Nvidia, DA Davidson, AI Services, AI Bot, OpenAI Locations: OpenAI, Mistral
Read previewOpenAI publicly fired back at Elon Musk's lawsuit on Tuesday in a blog post that revealed new details about Musk's relationship with the company. Lawyers for Musk and representatives for OpenAI did not immediately respond to requests for comment from Business Insider. In his lawsuit filed Friday, Musk accused OpenAI and its leaders of abandoning their open-source principles by partnering with Microsoft. "Elon soon chose to leave OpenAI, saying that our probability of success was 0, and that he planned to build an AGI competitor within Tesla," the blog post reads. The Tuesday blog post, which says OpenAI intends to move to dismiss all of Musk's claims, ends with assurances that, despite Musk's accusations, OpenAI is "focused on advancing our mission" and has "a long way to go."
Persons: , we've, Musk, OpenAI, Sam Altman, Greg Brockman, Altman, Brockman, Elon, Reid Hoffman, Ilya Sutskever, Tesla, et Organizations: Service, Elon, Business, Musk, OpenAI, Microsoft, Google
Jones was noodling with Copilot Designer, the AI image generator that Microsoft debuted in March 2023, powered by OpenAI's technology. "It was an eye-opening moment," Jones, who continues to test the image generator, told CNBC in an interview. watch nowMicrosoft's legal department told Jones to remove his post immediately, he said, and he complied. Jones said the risk "has been known by Microsoft and OpenAI prior to the public release of the AI model last October." "I am certainly convinced that this is not just a copyright character guardrail that's failing, but there's a more substantial guardrail that's failing," Jones told CNBC.
Persons: Jakub Porzycki, Shane Jones, Jones, OpenAI's DALL, Lina Khan, Khan, deepfakes, he's, Satya Nadella, Sam Altman, Justin Sullivan, Darth Vader, Elsa, Mickey Mouse, guardrail that's Organizations: Microsoft, Nurphoto, Copilot, CNBC, Commerce, Science, Transportation, Federal Trade, Google, Getty, pitchfork, Disney, Wars, Palestinian, Israel Defense Forces Locations: Krakow, Poland, Redmond , Washington, San Francisco, hoodies, Gaza
"The Perks of Being a Wallflower," "The Fault in Our Stars," "New Moon" — none are safe from copyright infringement by leading artificial intelligence models, according to research released Wednesday by Patronus AI. The company, founded by ex-Meta researchers, specializes in evaluation and testing for large language models — the technology behind generative AI products. Alongside the release of its new tool, CopyrightCatcher, Patronus AI released results of an adversarial test meant to showcase how often four leading AI models respond to user queries using copyrighted text. The four models it tested were OpenAI's GPT-4, Anthropic's Claude 2, Meta's Llama 2 and Mistral AI's Mixtral. Patronus only tested the models using books under copyright protection in the U.S., choosing popular titles from cataloging website Goodreads.
Persons: OpenAI, Anthropic's Claude, AI's, Rebecca Qian, Patronus, Qian, Meta, Gillian Flynn, Bella, Michelle Obama's Organizations: Patronus, Meta, CNBC Locations: Frankfurt, Germany, U.S
SINGAPORE – Asia-Pacific's tech sector has been growing on the back of the semiconductor boom even as other industries struggle amid global macro uncertainty, according to investment bank JPMorgan. "Tech has been recovering, that's why Asia has done reasonably well in the second half of last year. China industry benefited, North Asia obviously benefited more from it," Bruce Kasman, chief economist at JPMorgan said in a media briefing on Tuesday. Global tech spending weakened in 2023 while layoffs rose, said Deloitte in a report on tech industry's 2024 outlook. The recovery in tech is significant as other industries are still struggling.
Persons: Bruce Kasman, Deloitte, Ong Sin Beng Organizations: JPMorgan, Tech, Global, Deloitte, Nvidia Locations: SINGAPORE – Asia, that's, Asia, China, North Asia, U.S
Last week, Musk sued OpenAI and co-founders Sam Altman and Greg Brockman for breach of contract and fiduciary duty. "It's certainly a good advertisement for the benefit of Elon Musk," Kevin O'Brien, partner at Ford O'Brien Landy LLP and former assistant U.S. attorney, told CNBC. In the suit, Musk's lawyers say they want OpenAI to return to its work as a research lab and no longer exist for the "financial benefit" of Microsoft. Musk's attorneys didn't respond to a request for comment. Musk has an AI company of his own, X.AI, which introduced a competing chatbot called Grok in November after two months of training.
Persons: Elon Musk, Tesla, Beata Zawrzel, Elon, Musk, OpenAI, Sam Altman, Greg Brockman, It's, Kevin O'Brien, Ford O'Brien Landy, I'm, O'Brien, isn't, Shannon Capone Kirk, Ropes & Gray, Chris Ratliffe, Kirk, , X.AI, He's, bigwigs, Andrej Karpathy, Kyle Kosic, OpenAI's, Jason Kwon, Kwon Organizations: Nurphoto, Microsoft, Elon, CNBC, Ropes &, Ropes & Gray LLP, Bloomberg House, Economic, Bloomberg, Getty, The New York Times, SEC, Tesla, X.AI, OpenAI Locations: Krakow, Poland, Davos, Switzerland, OpenAI
Microsoft is accusing The New York Times of "unsubstantiated" claims in the publisher's lawsuit filed in December against OpenAI, a case that could have major implications for the future of generative artificial intelligence. In a motion to dismiss part of the suit on Monday, Microsoft said the Times presented a false narrative of "doomsday futurology" in which OpenAI's ChatGPT chatbot will decimate the news business. "In this case, The New York Times uses its might and its megaphone to challenge the latest profound technological advance: the Large Language Model," attorneys for Microsoft wrote. In its lawsuit, the Times accused OpenAI and Microsoft of copyright infringement and abusing the newspaper's intellectual property in training LLMs. A New York Times spokesperson didn't immediately respond to a request for comment.
Persons: Microsoft Corporation Satya Nadella, OpenAI, didn't Organizations: Microsoft Corporation, Economic, Microsoft, New York Times, OpenAI, Times, The New York Times Locations: Davos, Switzerland, OpenAI
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