Should this legislation come into force, it could penetrate the defences that many in Silicon Valley have built against such detailed scrutiny of AI development and deployment processes.

Since the public release of OpenAI’s ChatGPT, backed by Microsoft 18 months ago, there has been significant growth in interest and investment in generative AI technologies. These applications, capable of writing text, creating images, and producing audio content at record speeds, have attracted considerable attention. However, the rise in AI activity accompanying these changes prompts an intriguing question: How do AI developers actually source the data needed to train their models? Is it through the use of unauthorised copyrighted material?

Implementing the AI Act

The EU’s AI Act, intended to be implemented gradually over the next two years, aims to address these issues. New laws take time to embed, and a gradual rollout allows regulators the necessary time to adapt to the new laws and for businesses to adjust to their new obligations. However, the implementation of some rules remains in doubt.

One of the more contentious sections of the Act stipulates that organisations deploying general-purpose AI models, such as ChatGPT, must provide “detailed summaries” of the content used to train them. The newly established AI Office has announced plans to release a template for organisations to follow in early 2025, following consultation with stakeholders.

AI companies have expressed strong resistance to revealing their training data, describing this information as trade secrets that would provide competitors with an unfair advantage if made public. The level of detail required in these transparency reports will have significant implications for both smaller AI startups and major tech companies like Google and Meta, which have positioned AI technology at the center of their future operations.

Over the past year, several top technology companies—Google, OpenAI, and Stability AI—have faced lawsuits from creators who claim their content was used without permission to train AI models. Under growing scrutiny, however, some tech companies have, in the past two years, pierced their own corporate veil and negotiated content-licensing deals with individual media outlets and websites. Some creators and lawmakers remain concerned that these measures are not sufficient.

European lawmakers’ divide

In Europe, differences among lawmakers are stark. Dragos Tudorache, who led the drafting of the AI Act in the European Parliament, argues that AI companies should be required to open-source their datasets. Tudorache emphasises the importance of transparency so that creators can determine whether their work has been used to train AI algorithms.

Conversely, under the leadership of President Emmanuel Macron, the French government has privately opposed introducing rules that could hinder the competitiveness of European AI startups. French Finance Minister Bruno Le Maire has emphasised the need for Europe to be a world leader in AI, not merely a consumer of American and Chinese products.

The AI Act acknowledges the need to balance the protection of trade secrets with the facilitation of rights for parties with legitimate interests, including copyright holders. However, striking this balance remains a significant challenge.

Different industries vary on this matter. Matthieu Riouf, CEO of the AI-powered image-editing firm Photoroom, compares the situation to culinary practices, claiming there’s a secret part of the recipe that the best chefs wouldn’t share. He represents just one instance on the laundry list of possible scenarios where this type of crime could be rampant. However, Thomas Wolf, co-founder of one of the world’s top AI startups, Hugging Face, argues that while there will always be an appetite for transparency, it doesn’t mean that the entire industry will adopt a transparency-first approach.

A series of recent controversies have driven home just how complicated this all is. OpenAI demonstrated the latest version of ChatGPT in a public session, where the company was roundly criticised for using a synthetic voice that sounded nearly identical to that of actress Scarlett Johansson. These examples point to the potential for AI technologies to violate personal and proprietary rights.

Throughout the development of these regulations, there has been heated debate about their potential effects on future innovation and competitiveness in the AI world. In particular, the French government has urged that innovation, not regulation, should be the starting point, given the dangers of regulating aspects that have not been fully comprehended.

The way the EU regulates AI transparency could have significant impacts on tech companies, digital creators, and the overall digital landscape. Policymakers thus face the challenge of fostering innovation in the dynamic AI industry while simultaneously guiding it towards safe, ethical decisions and preventing IP infringement.

In sum, if adopted, the EU AI Act would be a significant step toward greater transparency in AI development. However, the practical implementation of these regulations and their industry results could be far off. Moving forward, especially at the dawn of this new regulatory paradigm, the balance between innovation, ethical AI development, and the protection of intellectual property will remain a central and contested issue for stakeholders of all stripes to grapple with.

See also: Apple is reportedly getting free ChatGPT access

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According to a Bloomberg report by Mark Gurman, “Apple isn’t paying OpenAI as part of the partnership.”

Instead, the Cupertino-based company is leveraging its massive user base and device ecosystem as currency.

“Apple believes pushing OpenAI’s brand and technology to hundreds of millions of its devices is of equal or greater value than monetary payments,” Gurman’s sources explained.

Gurman notes that OpenAI could find a silver lining by encouraging Apple users to subscribe to ChatGPT Plus, priced at $20 per month. If subscribers sign up through Apple devices, the iPhone maker will likely even claim a commission.

Apple’s AI strategy extends beyond OpenAI. The company is reportedly in talks to offer Google’s Gemini chatbot as an additional option later this year, signalling its intent to provide users with diverse AI experiences without necessarily having to make such major investments itself.

The long-term vision for Apple involves capturing a slice of the revenue generated from monetising chatbot results on its operating systems. This move anticipates a shift in user behaviour, with more people relying on AI assistants rather than traditional search engines like Google.

While Apple’s AI plans are ambitious, challenges remain. The report highlights that the company has yet to secure a deal with a local Chinese provider for chatbot features, though discussions with local firms like Baidu and Alibaba are underway. Initially, Apple Intelligence will be limited to US English, with expanded language support planned for the following year.

The Apple-OpenAI deal represents a novel approach to collaboration in the AI space, where brand exposure and technological integration are valued as much as, if not more than, direct financial compensation.

See also: Musk ends OpenAI lawsuit while slamming Apple’s ChatGPT plans

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Musk had initially sued OpenAI in March 2024, alleging breach of contracts, unfair business practices, and failure in fiduciary duty. He claimed that his contributions to the company were made “in exchange for and in reliance on promises that those assets were irrevocably dedicated to building AI for public benefit, with only safety as a countervailing concern.”

The lawsuit sought remedies for “breach of contract, promissory estoppel, breach of fiduciary duty, unfair business practices, and accounting,” as well as specific performance, restitution, and damages.

However, Musk’s filings to withdraw the case provided no explanation for abandoning the lawsuit. OpenAI had previously called Musk’s claims “incoherent” and that his inability to produce a contract made his breach claims difficult to prove, stating that documents provided by Musk “contradict his allegations as to the alleged terms of the agreement.”

The withdrawal of the lawsuit comes at a time when Musk is strongly opposing Apple’s plans to integrate ChatGPT into its operating systems.

During Apple’s keynote event announcing Apple Intelligence for iOS 18, iPadOS 18, and macOS Sequoia, Musk threatened to ban Apple devices from his companies, calling the integration “an unacceptable security violation.”

Despite assurances from Apple and OpenAI that user data would only be shared with explicit consent and that interactions would be secure, Musk questioned Apple’s ability to ensure data security, stating, “Apple has no clue what’s actually going on once they hand your data over to OpenAI. They’re selling you down the river.”

Since bringing the lawsuit against OpenAI, Musk has also created his own AI company, xAI, and secured over $6 billion in funding for his plans to advance the Grok chatbot on his social network, X.

While Musk’s reasoning for dropping the OpenAI lawsuit remains unclear, his actions suggest a potential shift in focus towards advancing his own AI endeavours while continuing to vocalise his criticism of OpenAI through social media rather than the courts.

See also: DuckDuckGo releases portal giving private access to AI models

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Musk has some history in the AI space. He co-founded OpenAI in 2015 alongside the current CEO, Sam Altman, and others. However, he parted ways with the company in 2018 due to disagreements over its priorities and direction, specifically OpenAI’s move away from open-source AI models and towards proprietary, closed models that they sell access to. Musk became one of OpenAI’s most vocal critics after that.

Fast-forward to July of last year, and Musk formally re-entered the generative AI arena with the announcement of xAI. Since then, the company has been aggressively working on building advanced AI systems that it claims will be “truthful, competent, and maximally beneficial for all of humanity.”

One of xAI’s first offerings is Grok, an edgier version of OpenAI’s ChatGPT. It is currently available only to X Premium subscribers. According to benchmarks shared by xAI, Grok-1 outperformed models like Llama-2-70B and GPT-3.5 but still lagged behind Anthropic’s Claude3, OpenAI’s GPT-4, Google’s Gemini, and Meta’s open-source Llama 3.

This latest funding round saw investments from big names, including Andreessen Horowitz, Sequoia Capital, and even Saudi Arabian Prince Al Waleed bin Talal. Last year, filings showed xAI was looking to raise up to $1 billion in equity investments, and just a few months ago, reports surfaced that they had increased their target to a whopping $6 billion—a figure Musk initially denied.

Developing the hardware capable of powering AI at this sophisticated level is no small feat and certainly is costly. Just last week, a report revealed that xAI would need an astonishing 100,000 of Nvidia’s current H100 chips for a supercomputer to power an upgraded version of Grok, each costing between $30,000 to $40,000.

Musk has ambitious plans for these powerful resources. He reportedly informed investors that the goal is to launch this new data centre by fall 2025, marking a significant step forward in xAI’s technological capabilities.

Continuing this AI race for chips, talent, and technology will be expensive. Big tech firms have already invested billions into AI startups like Anthropic, on top of what companies like Google, Apple, Amazon, Microsoft, and Meta are investing in their own AI projects.

Microsoft, in particular, has struck a multi-billion-dollar partnership with OpenAI, whose CEO, Sam Altman, is reportedly pursuing trillions more to revamp the global chip industry.

Tesla will continue to hire AI engineers for self-driving cars, even though Elon Musk has previously stated a preference for not bringing most of those AI and robotics capabilities in-house, to allow greater focus on external ventures. He talks about breaking free from the traditional constraints of auto manufacturing as part of a broader agenda.

At the same time, Tesla is gearing up for its annual meeting on June 13, where shareholders will start voting on whether to reinstate Musk’s record-breaking $56 billion pay package, a significant development given Musk’s substantial influence across various tech sectors.

Over the years, Musk has made substantial contributions to AI research, and now his venture, xAI, is at the forefront of AI developments. It will be fascinating to watch how these efforts unfold and see which of xAI’s contributions will secure a place in the annals of AI history during this rapid evolution.

See also: Elon Musk’s xAI open-sources Grok

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GPT-4o, where the “o” stands for “omni,” is designed to cater to a broader spectrum of input and output modalities. “It accepts as input any combination of text, audio, and image and generates any combination of text, audio, and image outputs,” OpenAI announced.

Users can expect a response time as quick as 232 milliseconds, mirroring human conversational speed, with an impressive average response time of 320 milliseconds.

Pioneering capabilities

The introduction of GPT-4o marks a leap from its predecessors by processing all inputs and outputs through a single neural network. This approach enables the model to retain critical information and context that were previously lost in the separate model pipeline used in earlier versions.

Prior to GPT-4o, ‘Voice Mode’ could handle audio interactions with latencies of 2.8 seconds for GPT-3.5 and 5.4 seconds for GPT-4. The previous setup involved three distinct models: one for transcribing audio to text, another for textual responses, and a third for converting text back to audio. This segmentation led to loss of nuances such as tone, multiple speakers, and background noise.

As an integrated solution, GPT-4o boasts notable improvements in vision and audio understanding. It can perform more complex tasks such as harmonising songs, providing real-time translations, and even generating outputs with expressive elements like laughter and singing. Examples of its broad capabilities include preparing for interviews, translating languages on the fly, and generating customer service responses.

Nathaniel Whittemore, Founder and CEO of Superintelligent, commented: “Product announcements are going to inherently be more divisive than technology announcements because it’s harder to tell if a product is going to be truly different until you actually interact with it. And especially when it comes to a different mode of human-computer interaction, there is even more room for diverse beliefs about how useful it’s going to be.

“That said, the fact that there wasn’t a GPT-4.5 or GPT-5 announced is also distracting people from the technological advancement that this is a natively multimodal model. It’s not a text model with a voice or image addition; it is a multimodal token in, multimodal token out. This opens up a huge array of use cases that are going to take some time to filter into the consciousness.”

Performance and safety

GPT-4o matches GPT-4 Turbo performance levels in English text and coding tasks but outshines significantly in non-English languages, making it a more inclusive and versatile model. It sets a new benchmark in reasoning with a high score of 88.7% on 0-shot COT MMLU (general knowledge questions) and 87.2% on the 5-shot no-CoT MMLU.

The model also excels in audio and translation benchmarks, surpassing previous state-of-the-art models like Whisper-v3. In multilingual and vision evaluations, it demonstrates superior performance, enhancing OpenAI’s multilingual, audio, and vision capabilities.

OpenAI has incorporated robust safety measures into GPT-4o by design, incorporating techniques to filter training data and refining behaviour through post-training safeguards. The model has been assessed through a Preparedness Framework and complies with OpenAI’s voluntary commitments. Evaluations in areas like cybersecurity, persuasion, and model autonomy indicate that GPT-4o does not exceed a ‘Medium’ risk level across any category.

Further safety assessments involved extensive external red teaming with over 70 experts in various domains, including social psychology, bias, fairness, and misinformation. This comprehensive scrutiny aims to mitigate risks introduced by the new modalities of GPT-4o.

Availability and future integration

Starting today, GPT-4o’s text and image capabilities are available in ChatGPT—including a free tier and extended features for Plus users. A new Voice Mode powered by GPT-4o will enter alpha testing within ChatGPT Plus in the coming weeks.

Developers can access GPT-4o through the API for text and vision tasks, benefiting from its doubled speed, halved price, and enhanced rate limits compared to GPT-4 Turbo.

OpenAI plans to expand GPT-4o’s audio and video functionalities to a select group of trusted partners via the API, with broader rollout expected in the near future. This phased release strategy aims to ensure thorough safety and usability testing before making the full range of capabilities publicly available.

“It’s hugely significant that they’ve made this model available for free to everyone, as well as making the API 50% cheaper. That is a massive increase in accessibility,” explained Whittemore.

OpenAI invites community feedback to continuously refine GPT-4o, emphasising the importance of user input in identifying and closing gaps where GPT-4 Turbo might still outperform.

(Image Credit: OpenAI)

See also: OpenAI takes steps to boost AI-generated content transparency

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According to two sources familiar with the matter who spoke to Reuters, OpenAI is scheduled to unveil its AI-powered search tool on Monday. The introduction of this product coincides closely with the timing of Google’s annual I/O conference, which starts on Tuesday and is anticipated to feature several AI-related announcements.

While Google remains a titan in search, it too has been adapting to incorporate AI more deeply into its functionalities. Google began trialling AI-powered search summaries in the US over a year ago and expanded testing to selected, signed-in UK users last month.

The potential entry of OpenAI into the search engine market adds a new layer of competition not only for Google, but also for other entities like Perplexity. This week, Perplexity announced a partnership with SoundHound to enhance voice assistants for IoT devices with its AI-powered search capabilities.

OpenAI, heavily supported by Microsoft, seems to be banking on the intersection of AI and search engine technology to carve out its niche. Microsoft previously integrated OpenAI’s AI capabilities into its Bing search engine and Edge browser in February 2023, making these advanced features available to paid subscribers, along with integration into its Microsoft Office suite.

OpenAI’s forthcoming search product is expected to expand on its existing flagship tool, ChatGPT. Reports from Bloomberg reveal that the new feature will allow users to pose questions to ChatGPT and receive responses that pull information from the web with appropriate citations. This could include references to Wikipedia or various blogs and might even provide illustrative images or diagrams relevant to the queries.

If OpenAI successfully launches this new search product, it could signify a significant shift in how internet searches are conducted—moving away from traditional search models towards more integrated, AI-driven responses that significantly enhance user experience.

(Photo by GR Stocks)

See also: Coalition of news publishers sue Microsoft and OpenAI

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First reported by The Verge, the group of eight publications owned by Alden Global Capital (AGC) – including the Chicago Tribune, New York Daily News, and Orlando Sentinel – allege the companies have purloined “millions” of their articles without permission and without payment “to fuel the commercialisation of their generative artificial intelligence products, including ChatGPT and Copilot.”

The lawsuit is the latest legal action taken against Microsoft and OpenAI over their alleged misuse of copyrighted content to build large language models (LLMs) that power AI technologies like ChatGPT. In the complaint, the AGC publications claim the companies’ chatbots can reproduce their articles verbatim shortly after publication, without providing prominent links back to the original sources.

“This lawsuit is not a battle between new technology and old technology. It is not a battle between a thriving industry and an industry in transition. It is most surely not a battle to resolve the phalanx of social, political, moral, and economic issues that GenAI raises,” the complaint reads.

“This lawsuit is about how Microsoft and OpenAI are not entitled to use copyrighted newspaper content to build their new trillion-dollar enterprises without paying for that content.”

The plaintiffs also accuse the AI models of “hallucinations,” attributing inaccurate reporting to their publications. They reference OpenAI’s previous admission that it would be “impossible” to train today’s leading AI models without using copyrighted materials.

The allegations echo those made by The New York Times in a separate lawsuit filed last year. The Times claimed Microsoft and OpenAI used almost a century’s worth of copyrighted content to allow their AI to mimic its expressive style without a licensing agreement.

In seeking to dismiss key parts of the Times’ lawsuit, Microsoft accused the paper of “doomsday futurology” by suggesting generative AI could threaten independent journalism.

The AGC publications argue that OpenAI, now valued at $90 billion after becoming a for-profit company, and Microsoft – which has seen hundreds of billions of dollars added to its market value from ChatGPT and Copilot – are profiting from the unauthorised use of copyrighted works.

The news publishers are seeking unspecified damages and an order for Microsoft and OpenAI to destroy any GPT and LLM models utilising their copyrighted content.

Earlier this week, OpenAI signed a licensing partnership with The Financial Times to lawfully integrate the newspaper’s journalism. However, the latest lawsuit from AGC highlights the growing tensions between tech companies developing generative AI and content creators concerned about the unchecked use of their works to train profitable AI systems.

(Photo by Wesley Tingey)

See also: OpenAI faces complaint over fictional outputs

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Through the deal, ChatGPT users will be able to see selected attributed summaries, quotes, and rich links to FT journalism in response to relevant queries. Additionally, the FT became a customer of ChatGPT Enterprise earlier this year, providing access for all employees to familiarise themselves with the technology and benefit from its potential productivity gains.

“This is an important agreement in a number of respects,” said John Ridding, FT Group CEO. “It recognises the value of our award-winning journalism and will give us early insights into how content is surfaced through AI.”

In 2023, technology companies faced numerous lawsuits and widespread criticism for allegedly using copyrighted material from artists and publishers to train their AI models without proper authorisation.

OpenAI, in particular, drew significant backlash for training its GPT models on data obtained from the internet without obtaining consent from the respective content creators. This issue escalated to the point where The New York Times filed a lawsuit against OpenAI and Microsoft last year, accusing them of copyright infringement.

While emphasising the FT’s commitment to human journalism, Ridding noted the agreement would broaden the reach of its newsroom’s work while deepening the understanding of reader interests.

“Apart from the benefits to the FT, there are broader implications for the industry. It’s right, of course, that AI platforms pay publishers for the use of their material. OpenAI understands the importance of transparency, attribution, and compensation – all essential for us,” explained Ridding.

Earlier this month, The New York Times reported that OpenAI was utilising scripts from YouTube videos to train its AI models. According to the publication, this practice violates copyright laws, as content creators who upload videos to YouTube retain the copyright ownership of the material they produce.

However, OpenAI maintains that its use of online content falls under the fair use doctrine. The company, along with numerous other technology firms, argues that their large language models (LLMs) transform the information gathered from the internet into an entirely new and distinct creation.

In January, OpenAI asserted to a UK parliamentary committee that it would be “impossible” to develop today’s leading AI systems without using vast amounts of copyrighted data.

Brad Lightcap, COO of OpenAI, expressed his enthusiasm about the FT partnership: “Our partnership and ongoing dialogue with the FT is about finding creative and productive ways for AI to empower news organisations and journalists, and enrich the ChatGPT experience with real-time, world-class journalism for millions of people around the world.”

This agreement between OpenAI and the Financial Times is the most recent in a series of new collaborations that OpenAI has forged with major news publishers worldwide.

While the financial details of these contracts were not revealed, OpenAI’s recent partnerships with publishers will enable the company to continue training its algorithms on web content, but with the crucial difference being that it now has obtained the necessary permissions to do so.

Ridding said the FT values “the opportunity to be inside the development loop as people discover content in new ways.” He acknowledged the potential for significant advancements and challenges with transformative technologies like AI but emphasised, “what’s never possible is turning back time.”

“It’s important for us to represent quality journalism as these products take shape – with the appropriate safeguards in place to protect the FT’s content and brand,” Ridding added.

The FT has embraced new technologies throughout its history. “We’ll continue to operate with both curiosity and vigilance as we navigate this next wave of change,” Ridding concluded.

(Photo by Utsav Srestha)

See also: OpenAI faces complaint over fictional outputs

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According to OpenAI, ChatGPT’s memory will improve over time as users interact with it more. For example, ChatGPT could remember a user’s preferred meeting note format, tailor birthday card suggestions based on a user mentioning their child’s interests, or apply a user’s chosen tone and voice when drafting blog posts without needing to be told repeatedly.

Users remain in control of ChatGPT’s memory and can turn it off completely if desired. They can also selectively delete memories or clear all memories through ChatGPT’s settings. OpenAI states that memories evolve based on interactions and are not tied to specific conversations.

For enterprises and teams, OpenAI believes memory will lead to more efficient workflows by retaining preferences, styles, and past context. Account owners can disable memory for their entire organisation if needed.  

ChatGPT’s memory capabilities will also extend to third-party Generative Pre-trained Transformers (GPTs) built on top of the platform. Developers can choose whether to enable memory for their GPT bots.

OpenAI says they are assessing potential biases with memory and aim to avoid ChatGPT proactively remembering sensitive user details without explicit permission. Additional privacy and safety considerations are being evaluated during this early preview period.

The company plans to share more details around a broader rollout of ChatGPT’s memory capabilities soon. For now, only a small portion of free and paying ChatGPT users will have access.

(Photo by Anshita Nair on Unsplash)

See also: Google launches Gemini to replace Bard chatbot

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The bot, created by “cloning” startup Delphi, aimed to support Phillips in his political campaign. However, this move directly contradicts OpenAI’s policies, leading to the suspension of the responsible developer.

The Washington Post reported that, despite displaying a disclaimer describing the nature of the chatbot to visitors, Dean.Bot’s purpose was clear: to engage with potential supporters and spread the candidate’s message.

OpenAI, in response, confirmed the suspension of the developer—emphasising the violation of their policies. This action follows OpenAI’s recent blog post outlining preventive measures against the misuse of its technology, specifically highlighting the prohibition of “chatbots impersonating candidates” in the lead-up to the 2024 elections.

Notably, OpenAI’s policies extend beyond this particular case—explicitly stating that applications for political campaigning and lobbying are not permitted.

In a crucial election year – not just in the US, but also in other Western democracies like the UK – it’s unsurprising that OpenAI is taking a firm stance against bots that could be seen to interfere and/or spread misinformation.

In response to the inquiry, Delphi initially removed ChatGPT from the bot and continued its operation using alternative open-source tools. However, OpenAI’s intervention prompted the ultimate suspension of the chatbot on Friday night.

Visitors to the Dean.Bot website are now told the chatbot is inaccessible due to “technical difficulties,” alongside a message that reads, “Apologies, DeanBot is away campaigning right now!”

(Image Credit: Gage Skidmore under CC BY-SA 2.0 DEED license)

See also: OpenAI launches GPT Store for custom AI assistants

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