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The Prompt: OpenAI’s Legal Battle With Musk Heats Up

Dec 17, 2024 - forbes.com
OpenAI is facing significant challenges as it plans to restructure into a for-profit public benefit corporation. Elon Musk, a cofounder who left OpenAI in 2018, has filed a lawsuit against the company over this transition, despite having previously suggested a for-profit model. OpenAI responded by emphasizing competition in the marketplace rather than legal battles. Additionally, Meta has opposed the restructuring, arguing it could disadvantage other startups. Meanwhile, OpenAI is dealing with the aftermath of a former researcher, Suchir Balaji, who died by suicide after whistleblowing on the company’s web scraping practices.

In other AI news, Google is integrating AI into smart glasses, and UnitedHealthcare is using AI to manage claims, facing criticism for high denial rates. Databricks is finalizing a $10 billion funding round, valuing the company at $62 billion. A significant legal case in Pennsylvania involves AI-generated deepfake pornography of minors, marking the largest-known instance in the U.S. SoftBank has pledged $100 billion for U.S. investments, despite its market cap being lower. Apple faces backlash for AI inaccuracies in summarizing news articles.

Key takeaways:

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  • OpenAI is restructuring to become a for-profit public benefit corporation, facing legal challenges from Elon Musk and opposition from Meta.
  • Former OpenAI researcher Suchir Balaji, who was a whistleblower against OpenAI's web scraping practices, was found dead in his apartment.
  • Databricks is finalizing a $10 billion funding round, valuing the company at $62 billion, with Thrive Capital leading the investment.
  • A large-scale incident of AI-generated deepfake pornography involving minors was uncovered in Lancaster, Pennsylvania, leading to criminal charges against two teenage boys.
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