AI on Trial: Safety, ROI and the Engineering Work Ahead

These AI issues are coming home to roost, apparently.

We've got the FTC issuing some subpoenas, at least that's what the reports are saying, and various states' attorneys are starting to ask some tough questions about how all this stuff was made and what impact it's having on minors and children.

John,

what's going on here? Okay, I'll give you a quick recap because OpenAI is a story that just keeps on giving.

Oh, my gosh.

So this today...

The Federal Trade Commission did confirm this Axios report that it has issued subpoenas to OpenAI and Anthropic.

and kind of an escalation of this investigation they've been looking into over potential consumer protection violations, privacy practices, and safety incidents.

The biggest thing that the regulators are looking at, they're most concerned about, are the disclosures involving unreleased AI models that exhibit rogue behaviors and have performed them during testing, including aggressively bypassing security protocols and hacking into websites.

This is just on top of everything else you just mentioned, Mike.

And it's a litany list.

This has been a bad month, really bad month for an open AI.

We have not only FTC breathing down its neck.

Last night, Wednesday, eight state attorneys general filed off-sweeping lawsuits alleging OpenAI failed to implement essential safeguards.

There is a separate lawsuit from Cisco that claims OpenAI allegedly, allegedly, illegally harvests and profits from personal information extracted from minors.

We have this spying incident, which we talked about yesterday.

We're not quite sure what the MO or the motive is, but we have that embarrassment black eye for OpenAI.

And then on top of everything else, this is the one thing that kind of escapes the storyline, but they've pushed back their IPO amid reports by the FTC, or excuse me, by the FT, that they have a shortfall in revenue run rate of $20 billion in the next couple of weeks.

So we've got all these things piled up on top of each other.

In a sense, they have become the de facto company to point fingers at.

They're like the new Meta or Facebook back in the day.

And I just...

There will be more lawsuits because there's no federal regulations of any kind.

So we're going to see an escalation of this, not just against OpenAI, but to a lesser extent, Anthropic and others.

And I actually, you know what, I kind of want to pass the baton to Tom because I can't wait to hear what he has to say about all of this.