Monday’s top story: Sam Altman is back on the OpenAI board, alongside three new female members.

🌀️ This Morning on AI Tool Report

  1. πŸ† Altman is back on the board (with 3 new additions)

  2. βš–οΈ NVIDIA sued for AI copyright infringement

  3. πŸ›Ÿ Microsoft boosts safety after internal complaint

  4. πŸ” OpenAI’s Sora scrutinized by EU

  5. ⏬ NVIDIA’s shares plummet amid AI chip frenzy

Read Time: 5 minutes

FINANCE

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INTERNAL POLITICS

Our Report: Following an outside investigation into why OpenAI abruptly fired CEO Sam Altmanβ€”and promptly rehired himβ€”in November, OpenAI has reinstated Altman onto the Board of Directors and added three new female members.

πŸ”‘ Key Points:

  • The investigation concluded that Altman’s firing was caused by β€œa breakdown in the relationship” between Altman and the prior board, but Altmans β€œconduct didn’t mandate removal.”

  • The three new female board members are Sue Desmond-Hellmann (ex-CEO of the Bill Gates Foundation), Nicole Seligman (ex-Sony president), and Fidji Simo (Instacart CEO).

  • This brings the board to eight, with all members of the transitionary board (which was formed after Altman’s firing) remaining, and Bret Taylor continuing as board chair.

🀨 Why you should care: OpenAI’s new board shows investors that it’s moving past internal conflicts andβ€”following criticism of its all-male boardβ€”is now including broader, diverse perspectives to try and mitigate AI bias.

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LEGAL

  • A trio of authorsβ€”Brian Keene, Abdi Nazemian, and Steward O’Nanβ€”are suing NVIDIA for using their copyrighted books to train its generative AI model, NeMo.

  • They allege that their work was included in a dataset of 196,640 books before it was removed for infringement (which they’re seeing as an admission of guilt from NVIDIA).

  • This follows similar copyright infringement lawsuits against OpenAI, Microsoft, and Meta for using copy-protected work to train their large language models (LLMs).

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AI SAFETY
  • Following the revelation (made by engineer, Shane Jones) that Microsoft's image-generation tool (Copilot Designer) was unsafe, Microsoft has changed its AI guardrails.

  • They have blocked users from using terms found to be harmful (eg. β€œpro-choice”) and are issuing policy violation warnings, leading to account suspension if ignored.

  • They have also stated that they’re β€œmaking adjustments, and putting additional controls in place to further strengthen our safety filters and mitigate misuse.”

DATA PRIVACY
  • OpenAI’s text-to-video modelβ€”Soraβ€”is under scrutiny from Italy’s data protection watchdog (Garante) over concerns about how it processes users' personal data.

  • Garante has given OpenAI 20 days to establish how Sora informs its users about how it uses their data and establish if it’s in line with EU data privacy regulations.

  • This is the second time OpenAI has been scrutinized by the Italian regulator, which is currently investigating potential data violations made by ChatGPT.

SHARE VALUE
  • NVIDIA’s stock price fell by over 5% on Friday, which is the biggest decline it’s seen since December 2022 (15 months ago), when they dropped by 7.1%.

  • The AI chipmaker sharesβ€”which have near-quadrupled over the last yearβ€”reached an all-time high, right before they plummeted, slashing $128B from its market cap.

  • It’s believed that NVIDIAs record-breaking run is slowing due to increased competition from other AI chipmakers, more cautious enterprise spending, and its newest copyright lawsuit.

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