Suchir Balaji, who previously worked at OpenAI, has voiced concerns about how the company uses copyrighted material to build its AI systems, including ChatGPT. In an interview with The New York Times, Balaji claimed that OpenAI’s methods could destabilize the economy for content creators who generate the data these systems rely on. He warned that OpenAI’s use of copyrighted content threatens the sustainability of digital platforms.
While OpenAI continues to assert that it follows legal standards, relying on publicly available data and fair use, critics, including Balaji, believe these practices could be legally questionable. OpenAI maintains that it operates within well-established legal frameworks, but questions surrounding how AI companies gather data have continued to spark debate across the industry. Coinciding with those accusations is the drop-out of Miles Brundage, a key figure in OpenAI’s AI policy research, who leaves the company after six years.
Copyright Claims and Lawsuits Against OpenAI
Earlier this year, The New York Times filed a lawsuit against OpenAI, accusing the company of scraping articles without permission to train its AI models. OpenAI continues to defend its practices as falling under fair use, though this remains a contested issue in court. Legal experts warn that the outcomes of such lawsuits could reshape how AI companies approach data usage.
OpenAI’s troubles are part of a broader wave of legal disputes over AI’s use of copyrighted material. In January 2024, a study conducted by the IEEE found that image-generation models like OpenAI’s DALL-E 3 and Midjourney may have violated copyright laws by producing visuals similar to scenes from films and video games. The findings have raised concerns about the legality of using copyrighted material to train AI systems.
In response to such legal challenges, OpenAI has already signed major licensing deals with content creators, including a $250 million agreement with News Corp. This deal grants OpenAI access to News Corp’s archives, allowing the AI company to legally use its content for training purposes. These types of partnerships are becoming more common as AI companies seek to avoid further legal complications.
The most recent lawsuit against an AI startup came just a day ago, when News Corp sued Perplexity AI, accusing the company of using its copyrighted content without authorization. News Corp’s lawsuit against Perplexity highlights the growing tensions between media companies and AI firms that rely on vast amounts of online data. The case has drawn attention to how AI companies like Perplexity and OpenAI use information from content creators without directly compensating them.
With Miles Brundage OpenAI Loses a Key Policy Figure
Miles Brundage’s departure from OpenAI is significant, as he had been with the company since 2018, shaping its AI policy research and readiness for AGI. Brundage had led efforts on safety and governance at OpenAI, including launching the company’s external red-teaming program and contributing to its influential research on AI regulation and societal impacts.
Brundage cited his reasons for leaving as a desire for greater freedom in his work, explaining that he hopes to focus more broadly on AI policy and governance across the entire industry. He plans to establish a nonprofit or join an existing organization to pursue these goals. Brundage indicated that working outside of the company would give him the ability to address issues beyond OpenAI’s scope.
His departure comes at a critical time for OpenAI, as the company’s expansion into new AI products has created tension between teams focused on safety and those pushing for faster commercialization. The leadership changes at OpenAI, combined with its financial and legal challenges, underscore the uncertainty facing the company as it continues to grow rapidly.
Leadership Shifts and Hiring of Chief Economist Aaron Chatterji
OpenAI’s financial and legal troubles come at a time with significant internal changes. Today, the company announced it has appointed Aaron Chatterji, a former White House economist, as its first Chief Economist. Chatterji, who previously worked in both the Obama and Biden administrations, will lead OpenAI’s research on how AI will shape the economy and job market. His arrival marks a strategic move by OpenAI to better navigate the economic impact of AI technology.
Chatterji’s hiring follows the departure of several key figures from OpenAI’s leadership team. Former Chief Technology Officer Mira Murati left the company in September to start her own AI-focused venture, seeking $100 million in funding. Other high-profile exits include Bob McGrew, Chief Research Officer, and Barret Zoph, VP of Research. These departures have fueled concerns about internal stability as OpenAI continues its rapid expansion.
As OpenAI rolls out new products, balancing safety and innovation has become a point of contention within the company.
Microsoft’s Investment and OpenAI’s Financial Woes
OpenAI’s legal struggles are surfacing at a time when the company is grappling with severe financial difficulties. Despite securing a $13 billion investment from Microsoft, OpenAI faces a projected $5 billion loss for 2024, with total losses expected to reach $44 billion by 2028. The increasing costs associated with AI development have prompted Microsoft to reconsider its partnership with OpenAI.
Employees at OpenAI have reportedly expressed frustration over insufficient computing resources, as the company relies heavily on Microsoft’s Azure platform. As OpenAI expands its capabilities, these limitations are seen as potential roadblocks to further AI development. To reduce its dependency on Microsoft, OpenAI has turned to other investors, with Thrive Capital leading a $6.6 billion funding round.
However, Microsoft is said to be exploring other AI partnerships, such as with Inflection AI, co-founded by Mustafa Suleyman. This shift comes amid Microsoft’s concerns over OpenAI’s rising costs and potential instability, following last year’s internal conflict when CEO Sam Altman was briefly ousted before regaining his position.
Adding further uncertainty to OpenAI’s future is a little-known clause in its agreement with Microsoft regarding artificial general intelligence (AGI). If OpenAI develops AGI, the contract allows it to cut Microsoft off from its technology. This clause, designed to prevent monopolistic control over AGI, gives OpenAI a powerful tool in future negotiations. However, the timeline for AGI development remains unclear, as the decision to declare AGI readiness lies with OpenAI.
Last Updated on November 7, 2024 2:22 pm CET
