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OpenAI CEO Sam Altman responded to a request by the Federal Trade Commission as part of an investigation to determine if the company “engaged in unfair or deceptive” practices relating to privacy, data security, and risks of consumer harm, particularly related to reputation.

it is very disappointing to see the FTC’s request start with a leak and does not help build trust.

that said, it’s super important to us that out technology is safe and pro-consumer, and we are confident we follow the law. of course we will work with the FTC.

— Sam Altman (@sama) July 13, 2023

The FTC has requested information from OpenAI dating back to June 2023, as revealed in a leaked document obtained by the Washington Post.

The subject of investigation: did OpenAI violate Section 5 of the FTC Act?

The documentation OpenAI must provide should include details about large language model (LLM) training, refinement, reinforcement through human feedback, response reliability, and policies and practices surrounding consumer privacy, security, and risk mitigation.

we’re transparent about the limitations of our technology, especially when we fall short. and our capped-profits structure means we aren’t incentivized to make unlimited returns.

— Sam Altman (@sama) July 13, 2023

The FTC’s Growing Concern Over Generative AI

The investigation into a major AI company’s practices comes as no surprise. The FTC’s interest in generative AI risks has been growing since ChatGPT skyrocketed into popularity.

Attention To Automated Decision-Making Technology

In April 2023, the FTC published guidance on artificial intelligence (AI) and algorithms, warning companies to ensure their AI systems comply with consumer protection laws.

It noted Section 5 of the FTC Act, the Fair Credit Reporting Act, and the Equal Credit Opportunity Act as laws important to AI developers and users.

FTC cautioned that algorithms built on biased data or flawed logic could lead to discriminatory outcomes, even if unintended.

The FTC outlined best practices for ethical AI development based on its experience enforcing laws against unfair practices, deception, and discrimination.

Recommendations include testing systems for bias, enabling independent audits, limiting overstated marketing claims, and weighing societal harm versus benefits.

“If your algorithm results in credit discrimination against a protected class, you could find yourself facing a complaint alleging violations of the FTC Act and ECOA,” the guidance warns.

AI In Check

The FTC reminded AI companies about its AI guidance from 2023 in regards to making exaggerated or unsubstantiated marketing claims regarding AI capabilities.

In the post from February 2023, the organization warned marketers against getting swept up in AI hype and making promises their products cannot deliver.

Common issues cited: claiming that AI can do more than current technology allows, making unsupported comparisons to non-AI products, and failing to test for risks and biases.

The FTC stressed that false or deceptive marketing constitutes illegal conduct regardless of the complexity of the technology.

The reminder came a few weeks after OpenAI’s ChatGPT reached 100 million users.

Deepfakes And Deception

About a month later, in March, the FTC warned that generative AI tools like chatbots and deepfakes could facilitate widespread fraud if deployed irresponsibly.

It cautioned developers and companies using synthetic media and generative AI to consider the inherent risks of misuse.

The agency said bad actors can leverage the realistic but fake content from these AI systems for phishing scams, identity theft, extortion, and other harm.

While some uses may be beneficial, the FTC urged firms to weigh making or selling such AI tools given foreseeable criminal exploitation.

It also warned against using synthetic media in misleading marketing and failing to disclose when consumers interact with AI chatbots versus real people.

If infected, users should update security tools and operating systems, then follow steps to remove malware or recover compromised accounts.

Federal Agencies Unite To Tackle AI Regulation

Near the end of April, four federal agencies – the Consumer Financial Protection Bureau (CFPB), the Department of Justice’s Civil Rights Division (DOJ), the Equal Employment Opportunity Commission (EEOC), and the FTC – released a statement on how they would monitor AI development and enforce laws against discrimination and bias in automated systems.

The agencies asserted authority over AI under existing laws on civil rights, fair lending, equal opportunity, and consumer protection.

Together, they warned AI systems could perpetuate unlawful bias due to flawed data, opaque models, and improper design choices.

The partnership aimed to promote responsible AI innovation that increases consumer access, quality, and efficiency without violating longstanding protections.

AI And Consumer Trust

In May, the FTC warned companies against using new generative AI tools like chatbots to manipulate consumer decisions unfairly.

After describing events from the movie Ex Machina, the FTC claimed that human-like persuasion of AI chatbots could steer people into harmful choices about finances, health, education, housing, and jobs.

Though not necessarily intentional, the FTC said design elements that exploit human trust in machines to trick consumers constitute unfair and deceptive practices under FTC law.

With generative AI adoption surging, the FTC alert puts companies on notice to proactively assess downstream societal impacts.

Those rushing tools to market without proper ethics review or protections would risk FTC action on resulting consumer harm.

An Opinion On The Risks Of AI

FTC Chair Lina Khan argued that generative AI poses risks of entrenching significant tech dominance, turbocharging fraud, and automating discrimination if unchecked.

In a New York Times op-ed published a few days after the consumer trust warning, Khan said the FTC aims to promote competition and protect consumers as AI expands.

Khan warned a few powerful companies controlled key AI inputs like data and computing, which could further their dominance absent antitrust vigilance.

She cautioned realistic fake content from generative AI could facilitate widespread scams. Additionally, biased data risks algorithms that unlawfully lock out people from opportunities.

While novel, Khan asserted AI systems are not exempt from FTC consumer protection and antitrust authorities. With responsible oversight, Khan noted that generative AI could grow equitably and competitively, avoiding the pitfalls of other tech giants.

AI And Data Privacy

In June, the FTC warned companies that consumer privacy protections apply equally to AI systems reliant on personal data.

In complaints against Amazon and Ring, the FTC alleged unfair and deceptive practices using voice and video data to train algorithms.

FTC Chair Khan said AI’s benefits don’t outweigh the privacy costs of invasive data collection.

The agency asserted consumers retain control over their information even if a company possesses it. Strict safeguards and access controls are expected when employees review sensitive biometric data.

For kids’ data, the FTC said it would fully enforce the children’s privacy law, COPPA. The complaints ordered the deletion ill-gotten biometric data and any AI models derived from it.

The message for tech firms was clear – while AI’s potential is vast, legal obligations around consumer privacy remain paramount.

Generative AI Competition

Near the end of June, the FTC issued guidance cautioning that the rapid growth of generative AI could raise competition concerns if key inputs come under the control of a few dominant technology firms.

The agency said essential inputs like data, talent, and computing resources are needed to develop cutting-edge generative AI models. The agency warned that if a handful of big tech companies gain too much control over these inputs, they could use that power to distort competition in generative AI markets.

The FTC cautioned that anti-competitive tactics like bundling, tying, exclusive deals, or buying up competitors could allow incumbents to box out emerging rivals and consolidate their lead.

The FTC said it will monitor competition issues surrounding generative AI and take action against unfair practices.

The aim was to enable entrepreneurs to innovate with transformative AI technologies, like chatbots, that could reshape consumer experiences across industries. With the right policies, the FTC believed emerging generative AI can yield its full economic potential.

Suspicious Marketing Claims

In early July, the FTC warned of AI tools that can generate deepfakes, cloned voices, and artificial text increase, so too have emerged tools claiming to detect such AI-generated content.

However, experts warned that the marketing claims made by some detection tools may overstate their capabilities.

The FTC cautioned companies against exaggerating their detection tools’ accuracy and reliability. Given the limitations of current technology, businesses should ensure marketing reflects realistic assessments of what these tools can and cannot do.

Furthermore, the FTC noted that users should be wary of claims that a tool can catch all AI fakes without errors. Imperfect detection could lead to unfairly accusing innocent people like job applicants of creating fake content.

What Will The FTC Discover?

The FTC’s investigation into OpenAI comes amid growing regulatory scrutiny of generative AI systems.

As these powerful technologies enable new capabilities like chatbots and deepfakes, they raise novel risks around bias, privacy, security, competition, and deception.

OpenAI must answer questions about whether it took adequate precautions in developing and releasing models like GPT-3 and DALL-E that have shaped the trajectory of the AI field.

The FTC appears focused on ensuring OpenAI’s practices align with consumer protection laws, especially regarding marketing claims, data practices, and mitigating societal harms.

For now, the FTC’s investigation underscores that the hype surrounding AI should not outpace responsible oversight.

Robust AI systems hold great promise but pose risks if deployed without sufficient safeguards.

Major AI companies must ensure new technologies comply with longstanding laws protecting consumers and markets.

Featured image: Ascannio/Shutterstock

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Antitrust Investigation Nothing To Worry About, Say Experts, As Aapl Drops $6B

Investors were clearly a little worried about yesterday’s announcement of a ‘broad’ antitrust investigation into Apple and other tech giants. AAPL stock dropped 1%, wiping $6.8B from its market cap, with similar falls for Alphabet, Amazon, and Facebook.

Altogether, the lost value totaled $33B, but experts say that there’s little to worry about — and indeed, the announcement could even be considered good news for the companies …

The Justice Department didn’t name names, stating that at this stage it is a broad look at tech giants “to understand whether there are antitrust problems that need addressing.” However, given that the terms of the antitrust investigation are to look at the behaviors of “dominant tech firms,” it is clear that Apple is among those companies in the spotlight.

The Justice Department is opening a broad antitrust review into whether dominant technology firms are unlawfully stifling competition […]

The review is geared toward examining the practices of online platforms that dominate internet search, social media and retail services, the department said.

Many are seeing this as a threat to Apple, including Apple Card partner bank Goldman Sachs, which this month warned investors to avoid tech stocks which become subject to antitrust lawsuits.

However, experts cited by Business Insider disagree. An academic and antitrust lawyer were both of the view that this was a political announcement, the government keen to be seen to be doing something, even if it’s unlikely to lead to much.

“There is enormous political pressure on the agencies in Washington to be seen as doing something about big tech,” said Daniel Crane, a professor at the University of Michigan’s law school who focuses on antitrust issues. He continued: “This is their way of responding to the political pressure” […]

The announcement was an unusually public performance by a federal regulator which typically prizes confidentiality in such matters. That’s because it was basically a notice, intended particularly to a key figure in Congress, that the Justice Department will now be spearheading the antitrust investigations into the big tech companies, said David Balto, an antitrust lawyer in Washington D.C. with decades of experience working for and with competition regulators officials there.

For tech companies, the DOJs’ announcement was if anything, a subtle indication that the government may not come down as hard on them as it might seem, he said.

Indeed, Balto went further.

This is good news for the companies.

That’s because it’s the Justice Department, not the FTC, laying claim to the issue.

Having the Justice Department take point on antitrust review is actually a good thing for the tech companies, Balto said. The Department of Justice hasn’t filed a major suit under the Sherman Antitrust Act since the Microsoft case two decades ago. And the agency actually has fewer legal options when it comes to policing competition than does the FTC, he said.

“I don’t think anybody’s going to lose any more sleep that this is all with the Justice Department,” Balto said. “If anything, they’ll feel more comfortable in their legal position.”

For his part, Professor Crane says it doesn’t much matter which agency takes the lead — nothing much is likely to come of any antitrust investigation.

The courts have made it difficult for regulators to win antitrust cases, and even when such cases are successful, they tend to take many years to play out. Because of that, there’s little chance the big tech companies will be broken up anytime soon, despite the political pressure on them, he said.

“The kind of blockbuster, ‘let’s break them up’ case that is being trumpeted politically, I just don’t see that being in the offing,” Crane said.

Apple recently testified to Congress on the issue. The DOJ investigation isn’t the only antitrust battle facing Apple: iOS developers have filed a class-action suit over App Store practices; the Supreme Court gave the go-ahead for another one by customers; and the European Union is investigating an antitrust complaint made by Spotify.

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Google Responds To Us Doj’s Antitrust Lawsuit

A lawsuit was filed in a federal court in Washington, D.C., on Tuesday. Google is being accused of maintaining a monopoly through several exclusive business contracts and agreements that lock out competition.

— Justice Department (@TheJusticeDept) October 20, 2023

This is the most significant action the federal government has taken against a tech company in the past 20 years.

Google has issued an official response to the lawsuit calling it “deeply flawed,” and claiming it does “nothing to help consumers.”

“Today’s lawsuit by the Department of Justice is deeply flawed. People use Google because they choose to, not because they’re forced to, or because they can’t find alternatives.”

Google goes on to say that, rather than helping consumers, the lawsuit will artificially promote “lower-quality” alternative search engines.

In addition, Google hypothesizes the lawsuit will also raise phone prices and make it harder for people to get the search services they want to use.

Here’s a complete rundown of the DOJ’s accusations and Google’s response to each of them.

Department of Justice Accusations / Google’s Response

Accusation: Google has agreements and contracts with businesses to promote its services.

Google’s response:

“Yes, like countless other businesses, we pay to promote our services, just like a cereal brand might pay a supermarket to stock its products at the end of a row or on a shelf at eye level.”

On Android devices, Google has promotional agreements with carriers and device makers to feature its services.

This helps keep the operating system free, Google says, as well as reduce the price people pay for Android phones.

Rival apps are often preloaded onto Android devices as well.

Google notes that it doesn’t come preloaded on Windows devices, where Bing is the default search engine.

Accusation: Google pays Apple billions of dollars to be the default search engine on iPhones.

Google’s response:

“Apple features Google Search in its Safari browser because they say Google is “the best.” This arrangement is not exclusive—our competitors Bing and Yahoo! pay to prominently feature, and other rival services also appear.”

Google’s response:

“The bigger point is that people don’t use Google because they have to, they use it because they choose to.

This isn’t the dial-up 1990s, when changing services was slow and difficult, and often required you to buy and install software with a CD-ROM.

Today, you can easily download your choice of apps or change your default settings in a matter of seconds—faster than you can walk to another aisle in the grocery store.”

The lawsuit also alleges that Americans aren’t proficient enough with technology to install and use Google alternatives.

Google says that’s not true while pointing out many of the world’s most popular apps aren’t preloaded – such as Spotify, Instagram, Snapchat, Amazon, and Facebook.

What Happens Now?

The historic lawsuit could stretch on for several years, according to technology policy experts at The New York Times.

For comparison, a similar lawsuit against Microsoft took over a decade to settle.

The investigation process which lead to this lawsuit took over a year on its own.

So we’re unlikely to get a satisfying conclusion any time soon, which makes this a particularly interesting story to follow.

It’s worth noting that Attorney General William P. Barr put immense pressure on the Justice Department to file this lawsuit before Election Day.

However, given how long the lawsuit may stretch on, reporters at the New York Times suggest it’s not politically motivated.

Sources: Google, The New York Times

Investors Flock To Inqubeta As Ai Cryptos Grow In Popularity

AI technology has been making headlines around the world, and its influence has extended into the realm of cryptocurrencies. InQubeta, a crypto crowdfunding NFT platform, has emerged as a major beneficiary of this growing trend, attracting substantial investment during its ongoing presale. With over $100,000 raised so far, InQubeta has garnered attention comparable to other prominent AI tokens like SingularityNet and Fetch.ai.

Analysts have already begun predicting a significant price spike for QUBE tokens in the coming weeks, with some estimates reaching up to 20 times their initial value. But before delving into these projections, let’s take a step back and explore the factors fueling the excitement surrounding InQubeta.

InQubeta Leverages The Power Of AI and Blockchain Technology

InQubeta operates as a platform that allows users to invest in AI startup projects using QUBE tokens. Its NFT marketplace provides a means for startups to raise funds and engage with their community by offering reward and equity-based NFTs. This unique investment opportunity has captured the interest of investors looking to support AI technology innovation and participate in the growth of the next generation of AI startups.

One crucial aspect that instills confidence in InQubeta is the verification and certification of its smart contracts. Top smart contract auditing firms such as Hacken, Block Audit, and Consult have thoroughly reviewed and certified InQubeta’s smart contracts. This validation assures investors that their funds are secure, mitigating concerns about potential security breaches or loss of funds in the smart contract system.

Investing in InQubeta’s QUBE token offers several compelling benefits. Firstly, investors gain exposure to the potential long-term growth and value appreciation of AI technology startups. As the AI industry continues to expand and evolve, investors stand to reap significant returns over time. Moreover, by staking QUBE tokens on the InQubeta platform, investors have the opportunity to earn rewards from the dedicated reward pool, providing an additional source of income and incentivizing long-term investment in the QUBE token.

QUBE tokens, being deflationary ERC20 tokens, offer a unique investment opportunity for crypto investors seeking to diversify their portfolios. The token’s buy and sell transactions incur a 2% tax, which is directed toward a burn wallet, reducing the circulating supply and potentially increasing the token’s scarcity. Additionally, a 5% buy and sell tax contributes to the dedicated reward pool, which further enhances the token’s value proposition.

As a QUBE token holder, investors also play a crucial role in the governance of the InQubeta platform. They have the ability to propose, discuss, and vote on key decisions, ensuring that InQubeta remains responsive to the needs and priorities of its community.

Visit InQubeta Presale

InQubeta Presale Offers A Great Opportunity For Investors

Currently, nQubeta is in its presale stage and investors can get the tokens at the best possible price and interested investors can purchase QUBE tokens from the presale platform using supported cryptocurrencies like ETH, USDT and BTC.

In addition, any remaining QUBE tokens unsold will be burnt from circulation ensuring scarcity and providing long term value for chúng tôi minimum investment amount for QUBE tokens is set at $50 making it accessible to a wide range of investors.

To further engage investors, InQubeta offers a staking dapp, accessible through supported wallets, where QUBE token holders can stake their tokens. By staking QUBE tokens, investors can earn rewards from the 2% and 5% buy and sell tax that flows into the dedicated reward pool. If the presale target is met then the starting market capitalization will soar to impressive levels, instantly solidifying its position as the next big AI project.

Bottom Line

InQubeta has an ambitious roadmap for its development and future plans. The platform aims to expand its NFT marketplace and introduce new features and partnerships to support the growth of the platform and the AI technology startup community. With its secure smart contracts, unique investment ecosystem, and staking rewards, InQubeta offers a promising avenue for investors looking to capitalize on the growth of AI technology.

Is Openai Free Or Remain Forever?

OpenAI is a non-profit research company whose main objective is to produce and direct AI in various courses of action that can help humanity as a whole. It contains long-term fundamental refinements in AI and its abilities.

The company intended to benefit humanity by working with safe artificial general intelligence. By reflecting its motive to collaborate with individuals and other research organizations.

All the capabilities and refinements provided by OpenAI boost the question for the user of whether OpenAI is free or paid.

Therefore, in this article, we are going to take a look at everything connected to OpenAI including Can you access OpenAI for free? Is OpenAI free? Is Chat GPT Safe? What is OpenAI Playground’s pricing?

Is OpenAI Free?

No, OpenAI Playground is mostly free with a time limit but The ChatGPT API and the ChatGPT Plus subscription are two separate products with their own pricing. To view the cost of using the API, please visit chúng tôi For access to chúng tôi a subscription to ChatGPT Plus is necessary and costs $20 per month. Additionally, if an Open Source SDK is available for ChatGPT, it could help developers integrate the AI model more efficiently into their projects.

Can I Use OpenAI for Free?

Yes, OpenAI provides a free credit of $5 which can be accessed by new users. However, these free credits are only limited to three months and they will eventually expire once you’ve completed three months.

You can simply choose a plan based on your requirement and resources as OpenAI keeps things flexible and simple for its users.

How to get OpenAI Free Trial Credits?

You can Start experimenting with $5 in OpenAI free credit that can be used during your first 3 months. Also note, you only get free credits for the first account associated with your phone number. Subsequent accounts are not granted free credits.

Also Read – Find out how to maintain your privacy by interacting with Chat GPT without phone verification.

OpenAI API Pricing Overview

OpenAI contains four main GPT-3 models which are Davinci, Curie, Ada, and Babbage. The prices of each model vary based on the number of tokens processed.

Tokens are the number of words used for the natural language process. For the English language, one token equals 4 characters or 0.75 words. 1000 words equal around 750 words.

Here are the pricing of all four models for 1000 tokens or 750 words:

Davinci – $0.02

Curie – $0.002

Babbage – $0.0005

Ada – $0.0004

As the requirement for words increases, the cost will also increase. This way users will only have to pay for how much they are using the tool.

Here is the pricing for 2,500 tokens, which is 1,875 words:

Davinci – $0.05

Curie – $0.005

Babbage – $0.0013

Ada – $0.0010

Twitter Ceo Vows To Tackle The Trolls

Twitter CEO vows to tackle the Trolls

For all the amazing things the internet has to offer, there is one pervasive and extremely pesky problem that millions of internet users have to deal with on a daily basis, namely Trolls! Often taking the liberty of free speech to the extreme, these individuals are a continual hassle all over the internet – especially on social media sites like Twitter. There have been numerous reports of harassment and abuse on Twitter over the years, but now their CEO has admitted that these Trolls are driving away users, and that Twitter sucks at dealing with such abuse. He has now sworn to take more drastic actions to make the Twitter experience more enjoyable in the future.

Such an admittance from the CEO carries a lot of weight for the company, and came as a response to a recent case involving Lindy West, who is an American writer for GQ, an editor, and performer. She is also the founder of a popular Blog for teens called: It’s Not Your Fault. Due to her online persona, she became a target for some pervasive Twitter trolls, who in their enmity, created an account using her recently deceased father’s name, to torment her. Free speech or not, that’s just unnecessarily cruel!

Even though Twitter already has some security and blocking features, many people feel this is not enough. This recent case helped to spark a debate about a company’s responsibilities to their users, and what these companies can do to protect people from this kind of abuse in the future. Responding to some people’s questions whether anything could be done, Dick Costolo, the current CEO of Twitter had this to say:

“On Tue, Feb 3, 2023 at 12:45 PM, Dick Costolo wrote:

Let me be very very clear about my response here. I take PERSONAL responsibility for our failure to deal with this as a company. I thought i did that in my note, so let me reiterate what I said, which is that I take personal responsibility for this. I specifically said “It’s nobody’s fault but mine”

We HAVE to be able to tell each other the truth, and the truth that everybody in the world knows is that we have not effectively dealt with this problem even remotely to the degree we should have by now, and that’s on me and nobody else. So now we’re going to fix it, and I’m going to take full responsibility for making sure that the people working night and day on this have the resources they need to address the issue, that there are clear lines of responsibility and accountability, and that we don’t equivocate in our decisions and choices.”

Trolling is certainly a problem all over the net, that nobody is safe from. Famous people such as movie stars or millionaires aren’t any safer than the average person from unsolicited attacks on twitter or other social media sites. Remember the disturbing images Zelda Williams was sent last year, just after her iconic father’s death? Does that speak volumes about the company’s service, or about the inherent lack of empathy in some people’s minds? Is it really the company’s responsibility to make your online experience safe from harassment by other people? Is it even possible to provide a completely safe social media experience?

Well, Mr. Costolo certainly seems to think so and will undoubtedly push for more security tools to become available for the 232 Million users worldwide. Let’s hope he is successful in this endeavour, and that other social media sites will follow suit to Tackle the Trolls.

VIA: THE VERGE

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