🔥 Open AI fires back at Musk

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Martin Crowley & Liam Lawson
March 06, 2024

Wednesday’s top story: OpenAI has hit back at Musk’s lawsuit, claiming Musk was all for a for-profit structure, as long as he had full control.

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🌤️ This Morning on AI Tool Report

  1. 🔥 Open AI fires back at Musk

  2. 📽️ Google alum launch Sora rival

  3. 🥊 Google fights against AI

  4. 📼 Microsoft uses VCR example to fight The Times

  5. 🛟 AI safety startup raises $150M, led by BlackRock

Read Time: 5 minutes

FINANCE

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LEGAL

Our Report: The OpenAI board has issued a statement dismissing all claims made by Elon Musk in his recent lawsuit (which declares they’ve breached their contractual agreement by pursuing profits instead of the original nonprofit mission, that he originally helped fund).

🔑 Key Points:

  • The board's statement maintains that since its inception in 2015, it has raised less than $45M from Musk, despite his initial commitment to provide as much as $1B in funding.

  • It argues that transitioning to a for-profit structure was essential to secure the funding and resources needed to develop superior intelligence AI systems.

  • It claims that Musk agreed with this, but wanted “absolute control” of the company, which OpenAI refuted, feeling that no one person should have full control.

  • Plus, it used examples of how its technology empowers people in places like Kenya and India to prove its commitment to developing safe AI while promoting wider access to its tools.

🤨 Why you should care: The outcome of the ongoing battle between Musk and OpenAI could have serious ramifications on the direction and pace of AI development and change the balance of power among the key players within the industry.

TEXT-TO-VIDEO

  • Google alums—Yishu Miao and Ziyu Wang—have released a video-generation tool (Haiper) that allows users to generate videos from text prompts, rivaling OpenAI’s Sora.

  • Although, at the moment, Haiper can only generate short videos (between 2 - 4 seconds), users can animate their images and repaint videos in different styles.

  • Haiper costs nothing to use, and Miao and Wang want to keep it that way, claiming it’s “too early” to think about subscription models and their focus is on building a community.

  • They plan to develop a core model, available for wider usage, which they are testing—in private—with developers, reflecting the potential for future open-source contributions.

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SEO CONTENT

  • Google has announced it's changing its search ranking system to downrank spammy, AI-generated content, and only serve authentic, high-quality results.

  • It has publically committed to directly addressing “low-quality AI-generated content that’s designed to attract clicks, but that doesn’t add much original value.”

  • Its end goal is to reduce the amount of pages that “feel unsatisfying and lack original content” and is giving sites 60 days before it makes changes to its algorithms.

  • This raises questions over how Google—which is competing against AI search browsers, like Arc—will bring AI to everyone, but also stop AI from overruling the web.

LEGAL

  • Microsoft lawyers are comparing generative AI models (like GPT-4) to video cassette recording (VCR) tech, to dismiss claims in the Times copyright infringement lawsuit.

  • The Times is suing Microsoft for using its data to mimic its style, but Microsoft is claiming that the lawsuit is similar to the movie industry's attempts to kill the VCR in the 1980s.

  • It likens the lawsuit to the 1984 Sony vs Universal City Studios case, which saw the Courts reject arguments made by movie producers to stop groundbreaking technology.

  • It argues that the VCR didn't destroy Hollywood, and AI won't destroy journalism, dubbing The Times’s actions as "doomsday futurology" that’s preventing "technological advances."

PUBLIC SAFETY

  • RapidSOS—an AI-driven public safety startup—has secured $150M in Series-C funding, led by a $75M investment from BlackRock (the world's largest asset manager).

  • The startup utilizes AI to make emergency responses faster and cost-effective by integrating connected systems that deliver vital data to over 16K first responders.

  • Over 200 US companies—including leading technology, consumer, transportation, logistics, and education companies—are now part of the RapidSOS ecosystem.

  • This recent investment marks a pivotal step in public safety innovation and reflects strong investor confidence in the use of AI within the public safety sector.

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Until next time, Martin & Liam.

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