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OpenAI alleges New York Times ‘hacked’ ChatGPT for lawsuit evidence

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OpenAI asked a judge to dismiss parts of The New York Times‘ lawsuit against it, alleging that the media company “paid someone to hack OpenAI’s products,” such as ChatGPT, to generate 100 examples of copyright infringement for its case.

In a filing Monday in Manhattan federal court, OpenAI alleged it took the Times “tens of thousands of attempts to generate the highly anomalous results,” and that the company did so using “deceptive prompts that blatantly violate OpenAI’s terms of use.”

“Normal people do not use OpenAI’s products in this way,” OpenAI wrote in the filing.

The “hacking” that OpenAI alleges in the filing could also be called prompt engineering or “red-teaming,” a common way for artificial intelligence trust and safety teams, ethicists, academics and tech companies to “stress-test” AI systems for vulnerabilities. It’s a common practice in the AI industry and a popular way to alert companies to issues within their systems, similar to how cybersecurity professionals stress-test companies’ websites for weaknesses.

The New York Times did not immediately respond to CNBC’s request for comment.

The filing comes as a broader battle heats up between OpenAI and publishers, authors and artists over using copyrighted material for AI training data, including the high-profile Times lawsuit, which some see as a watershed moment for the industry. The news outlet’s lawsuit, filed in December, seeks to hold Microsoft and OpenAI accountable for billions of dollars in damages.

In the past, OpenAI has said it’s “impossible” to train top AI models without copyrighted works.

“Because copyright today covers virtually every sort of human expression—including blog posts, photographs, forum posts, scraps of software code, and government documents—it would be impossible to train today’s leading AI models without using copyrighted materials,” OpenAI wrote in a filing last month in the U.K., in response to an inquiry from the U.K. House of Lords.

“Limiting training data to public domain books and drawings created more than a century ago might yield an interesting experiment, but would not provide AI systems that meet the needs of today’s citizens,” OpenAI continued in the filing.

As recently as last month, in Davos, Switzerland, OpenAI CEO Sam Altman said he was “surprised” by the Times’ lawsuit, saying OpenAI’s models didn’t need to train on the publisher’s data.

“We actually don’t need to train on their data,” Altman said at an event organized by Bloomberg in Davos. “I think this is something that people don’t understand. Any one particular training source, it doesn’t move the needle for us that much.”

Although one publisher may not make a difference in ChatGPT’s operating abilities, OpenAI’s filing suggests that a decision by many publishers to opt out may have an effect. In recent months, the company began courting publishers to allow content to be used for training data.

The company has already struck deals with Axel Springer, the German media conglomerate that owns Business Insider, Morning Brew and other outlets, and is also reportedly in talks with CNN, Fox Corp. and Time to license their work.

“We expect our ongoing negotiations with others to yield additional partnerships soon,” OpenAI wrote in the filing.

In the filing and its blog posts, OpenAI has highlighted its opt-out process for publishers, which allows outlets to prohibit the company’s web crawler from accessing their websites. But in the filing, OpenAI says the content is vital to training today’s AI models.

“While we look forward to continuing to develop additional mechanisms to empower rightsholders to opt-out of training, we are actively engaged with them to find mutually beneficial arrangements to gain access to materials that are otherwise inaccessible, and also to display content in ways that go beyond what copyright law otherwise allows,” the company wrote.

— CNBC’s Ryan Browne contributed to this report.

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China’s EV makers are having more trouble paying their bills and now take 2 to 3 times longer than Tesla does

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The time it’s taking for some of China’s electric-car makers to pay suppliers is ballooning — a further sign of stress in the nation’s increasingly cutthroat auto market.

Nio Inc. was taking around 295 days to clear its receipts payable, the vast majority of which are owed to suppliers, at the end of 2023 versus 197 days in 2021, according to the most recent available data compiled by Bloomberg. Xpeng Inc., another US-listed Chinese EV maker, was taking 221 days to honor its obligations to vendors and related parties, up from 179 days, the data show.

Elon Musk’s Tesla Inc., by comparison, only took around 101 days, and that period has remained largely stable in the past three years.

The extended payment cycles are indicative of the pressure many automakers are under in China, where economic growth remains sluggish and consumer sentiment is subdued. That’s translated into reduced demand for electric cars, and the once fast-growing market is now beset with intense price wars and crunched profit margins.

Since Beijing phased out a national subsidy program for EV purchases in 2022, some smaller manufacturers have been pushed to the brink. WM Motors filed for restructuring in October, and Human Horizons Group Inc., the owner of premium EV brand HiPhi, suspended operations for at least six months in February.

“Everybody’s suffering,” said Jochen Siebert, managing director at consultancy JSC Automotive. “For manufacturers, price reductions mean less money coming in. So the money they owe to their suppliers may be necessary for them to remain liquid.”

Representatives for Nio and Xpeng didn’t respond to requests for comment.

Delayed payments are starting to have a knock-on effects at auto-parts suppliers, Siebert said.

“Tier-three or four suppliers really get bitten, because they can’t pass it on,” he said, adding the EV sector may see a “messy consolidation” as suppliers go bankrupt, quickly causing production issues for automakers down the line.

Indeed Jiaxing, Zhejiang-based Minth Group Ltd., a supplier of exterior body parts, saw its accounts and notes receivables surge more than 40% to 4.74 billion yuan ($656 million) as of December from the end of 2020, while its cash and equivalents shrank by almost one-third to 4.2 billion yuan over the same period, according to data compiled by Bloomberg.

Hunan Yuneng New Energy Battery Material Co., which is a major supplier to BYD Co., according to data compiled by Bloomberg, saw its accounts and notes receivables more than triple to 10.43 billion yuan at the end of 2022 from a year earlier, while cash reserves fell to 435.2 million yuan.

“The price war won’t end soon and the stress eventually will be delivered to suppliers,” said Zhu Lin, a Shanghai-based managing director with turnaround management firm Alvarez & Marsal.

“We’ve seen more car components producers approaching us to improve their performance and some of them are thinking about offloading unprofitable businesses,” Zhu said. “The weak ones in the supply chain will face a high risk of being kicked out of the game.”

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Russian strikes on Ukraine’s Kharkiv region kill at least 11

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A view shows a crater that appeared after a Russian missile strike on a structure at a resort, amid Russia’s attack on Ukraine, in Kharkiv, Ukraine May 19, 2024. REUTERS/Valentyn Ogirenko

Valentyn Ogirenko | Reuters

Russia struck a busy lakeside resort on the edge of Ukraine’s second largest city on Sunday and also attacked villages in the surrounding region, killing at least 11 people and wounding scores.

The missile strikes were the latest in what have been constant Russian attacks in recent weeks on the Kharkiv region of northeastern Ukraine, where Russian troops have launched an offensive.

Valentyna, 69, had blood running down her face at the lakeside resort area where her home had been destroyed and a busy restaurant nearby been obliterated. Her husband was killed down by the water, she said, gesturing to the area near the shore where there was now a crater, rubble and corpses.

“To lose my husband, to lose my house, to lose everything in the world, it hurts, it hurts me,” she shouted through tears “They (the Russians) are animals, why do they need to kill people?”

Prosecutors said six people were killed there, one was still missing and 27 wounded. Rescuers said the initial strike was followed by a second strike around 20 minutes later, targeting emergency crews at the scene in a so-called “double tap”.

“There were never any soldiers here,” said Yaroslav Trofimko, a police inspector who arrived after the first strike and was then caught up in the second. “It was a Sunday, people were supposed to be here to rest, children were supposed to he here, pregnant women, resting, enjoying a normal way of life.”

Another five people were killed and 9 injured later in the day in two villages in Kupiansk district. Local governor Oleh Syniehubov said Russian forces shelled two villages of the district with a self-propelled multiple rocket launcher.

President Volodymyr Zelenskyy again called on Western allies to supply Kyiv with additional air defence systems to protect Kharkiv and other cities.

“The world can stop Russian terror – and to do so, the lack of political will among leaders must be overcome,” Zelenskyy said on Telegram.

“Two Patriots for Kharkiv will make a fundamental difference,” he said, referring to Patriot missile defence systems. Air defence systems for other cities and sufficient support for soldiers on the front line would ensure Russia’s defeat, the president added



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Leading business figure Sir Anthony O'Reilly dies

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He built an international media business which at one stage owned more than 100 newspapers.



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