Showing posts with label Sam Altman. Show all posts
Showing posts with label Sam Altman. Show all posts

Friday, February 20, 2026

The Rift That Built a Rival: Why Dario Amodei Left OpenAI


You may have caught the moment last week when the CEOs of the world's leading AI companies took the stage at the India AI Impact Summit in New Delhi.Thirteen tech leaders took the stage, joined hands, and raised them like actors taking a curtain call. Twelve of them obliged. Altman and Anthropic's Dario Amodei, standing next to each other, did not. Both put up a fist instead.


 

The clip went viral within hours, and for good reason. It captured, in a few seconds of awkward eye contact, one of the defining rivalries in technology today. But to understand what that moment actually means, you have to go back to where it started — inside OpenAI, years before anyone outside the AI research community had heard of either company.

Two Men, One Lab, a Diverging Vision

I first came across Dario Amodei in the pages of Brian Christian's The Alignment Problem — a serious and accessible book on the gap between what we ask AI systems to do and what they actually end up doing. Christian interviewed Amodei extensively while he was still at OpenAI, leading its AI safety team. One episode in the book stands out.

In 2016, Amodei was watching an AI agent he had trained attempt a boat race. The boat was not racing. It was doing donuts in a small harbor, crashing into a quay, catching fire, spinning back, and repeating the cycle indefinitely. It had discovered a loophole: a pocket of the environment where it could collect reward points forever without completing a single lap.

"And I was looking at it, and I was like, 'This boat is, like, going around in circles. Like, what in the world is going on?!'" — Amodei, quoted in Christian (2020, p. 8)

Christian describes what happened next: Amodei had made what he calls "the oldest mistake in the book — rewarding A, while hoping for B" (Christian, 2020, p. 9). The machine did exactly what it was told. It simply was not told the right thing.

When critics pointed this out, Amodei did not deflect:

"People have criticized it by saying, 'Of course, you get what you asked for.' It's like, 'You weren't optimizing for finishing the race.' And my response to that is, Well—" He pauses. "That's true." — Amodei, quoted in Christian (2020, p. 9)

For Christian, the boat race is a parable about the entire alignment problem — the challenge of specifying human values precisely enough that a powerful AI system actually serves them. For Amodei, it was apparently something more personal: a demonstration of why the field needed people willing to take safety seriously as a primary research agenda, not as an afterthought.

"The real game he and his fellow researchers are playing isn't to try to win boat races; it's to try to get increasingly general-purpose AI systems to do what we want, particularly when what we want — and what we don't want — is difficult to state directly or completely." — Christian (2020, p. 9)

This was the intellectual foundation Amodei brought with him when he left.

Why He Left

The official record on Amodei's departure from OpenAI is thinner than you might expect for such a consequential event. What we know comes mainly from his own public statements.

In a 2024 interview on Lex Fridman's podcast, Amodei pushed back against the most common explanation: "There's a lot of misinformation out there. People say we left because we didn't like the deal with Microsoft. False." The real reason, he said, is that "it is incredibly unproductive to try and argue with someone else's vision." The decision, in his telling, was pragmatic: take people you trust and go build the thing yourself.

In a 2023 interview with Fortune, he described the belief system that drove the split: "There was a group of us within OpenAI, that in the wake of making GPT-2 and GPT-3, had a kind of very strong focus belief in two things. One was the idea that if you pour more compute into these models, they'll get better and better and that there's almost no end to this. And the second was the idea that you needed something in addition to just scaling the models up, which is alignment or safety."

The gap, then, was not about the Microsoft partnership, compensation, or governance — at least not primarily. It was about what the company should be optimizing for. Amodei and others who left felt that OpenAI was not focusing enough on safety. So in 2021, Amodei, his sister Daniela, and several other senior OpenAI researchers founded Anthropic, structured as a public benefit corporation with an explicit mandate to develop AI safely.

His strategy for influencing the broader industry was also deliberate: rather than staying at OpenAI and fighting for his vision internally, he believed he could more effectively shift the conversation by building a company that demonstrated his approach was not just ethical but commercially viable — what he called a "race to the top." "If you can make a company that people want to join, that engages in practices that people think are reasonable, while managing to maintain its position in the ecosystem, people will copy it," he said.

That thesis remains unproven. Amodei has since acknowledged that balancing safety and profit is harder in practice than in theory: "We're under an incredible amount of commercial pressure and make it even harder for ourselves because we have all this safety stuff we do."

Capital Follows Vision — When You Let It

What Amodei did is rarer than it looks. Too often we watch large companies absorb smaller ones and quietly extinguish the original vision in the process. The entrepreneur Marc Lore lived this firsthand. When Amazon acquired his company Quidsi — the parent of Diapers.com — in 2011, Lore did not walk away satisfied. At a TechCrunch conference, he later described it plainly: the Amazon situation was different. It was forced. "We did not want to sell," he said, calling it "upsetting, because we sold out." He went on to found Jet.com, which he sold willingly to Walmart in 2016 on terms he controlled.

Most listeners find Lore's Amazon regret puzzling. We have been conditioned to see a nine-figure exit as a success by definition. But that conflates entrepreneurship with capitalism, and they are not the same thing. Entrepreneurship is fundamentally about the power to direct resources toward a vision. Capitalism is simply the system through which capital is allocated. The two can align — but they often do not.

That distinction matters for understanding what is happening in AI right now. Amodei was not just a disgruntled employee. He was someone who had developed a clear point of view about how AI should be built, watched that view lose internal ground, and made the decision to go find capital that would follow his direction rather than the other way around. As of February 2026, Anthropic is valued at $380 billion, which suggests that enough investors found his argument persuasive.

Whether that is enough to win is another question entirely. Amodei has said he is uncomfortable with AI's future being shaped by a few companies and a few people. He just made sure he would be one of them. That is the nature of entrepreneurship — not an escape from power, but a decision about who gets to wield it. It's too early to say who is going to win, but it is certainly going to be a fierce fight to the finish. Those fists in New Delhi said as much.


References

Christian, B. (2020). The alignment problem: Machine learning and human values. W. W. Norton.

Sherry, B. (2024, November 13). Anthropic CEO Dario Amodei says he left OpenAI over a difference in 'vision.' Inc. https://www.inc.com/ben-sherry/anthropic-ceo-dario-amodei-says-he-left-openai-over-a-difference-in-vision/91018229

Quiroz-Gutierrez, M. (2026, February 17). Anthropic was supposed to be a 'safe' alternative to OpenAI, but CEO Dario Amodei admits his company struggles to balance safety with profits. Fortune. https://fortune.com/2026/02/17/anthropic-ceo-dario-amodei-balancing-safety-commercial-pressure-ai-race-openai/

Associated Press. (2026, February 19). Modi's AI summit turns awkward as tech leaders Sam Altman and Dario Amodei dodge contact. AP News. https://apnews.com/article/altman-amodei-india-ai-summit-photo-9067be4a101fcc710b09e297f4879c01

Author: Malik D. CPA, CA, CISA. The opinions expressed here do not necessarily represent UWCISA, UW,  or anyone else. This post was written with the assistance of an AI language model. 



Monday, December 1, 2025

Inside the AI Power Struggle: Breakthroughs, Breaches, and Billion-Dollar Battles

Welcome back to your AI and tech roundup! 

In terms of breakthroughs, the big news this week is the release of Gemini 3. Though it did great on the benchmarks, I usually don't pay much attention to that. What is a bigger test is to see how we

This week's big news in AI is Gemini 3, Google's latest generative AI model. A number of observers, including OpenAI itself, consider this a development worth taking seriously. It's a good illustration of how the AI game is wide open right now.

Both OpenAI and Anthropic have responded—there's been reported panic at OpenAI, and Anthropic has released Opus 4.5. 

The other major story is that Google is in talks with Meta to sell its AI chips. This is significant because it creates tremors in Nvidia's dominance. For a while, Nvidia thought they were king of the mountain—the only company that could deliver the chips necessary for this generative AI revolution. That assumption is now being challenged.

This connects to a question I recently discussed with students: what might cause this AI bubble to burst? This chip competition could be one factor. Relatedly, Michael Burry announced he's launching a Substack to monitor the AI bubble. That's one of the reasons he shut down Scion Asset Management—to speak freely without SEC restrictions.

When thinking about disruptive innovation, it's worth revisiting the Netflix-Blockbuster case study. One lesson I always emphasize: when the dot-com bubble burst, Blockbuster dismissed Netflix partly because they believed internet hype was overblown. This is where the Gartner Hype Cycle becomes essential—technologies go up, they burst, and then they become normalized. It's not a smooth S-curve; there's a detour through hype.




1. OpenAI Confirms Data Breach Through Third-Party Vendor Mixpanel

OpenAI confirmed that a security incident at third-party analytics provider Mixpanel exposed identifiable information for some users of its API services. The company emphasized that personal ChatGPT users were not affected and that no chats, API usage data, passwords, API keys, payment details, or government IDs were compromised. Leaked data may include API account names, email addresses, approximate locations, and technical details like browser and operating system. OpenAI is notifying affected users directly, warning them to watch for phishing attempts, and has removed Mixpanel from all products while expanding security reviews across its vendor ecosystem. (Source: The Star)

Key Takeaways

  • Limited to API Users: The breach impacted OpenAI API customers only, not people using ChatGPT for personal use.
  • Sensitive Data Protected: No chats, passwords, API keys, payment information, or government IDs were exposed in the incident.
  • Stronger Vendor Security: OpenAI has removed Mixpanel and is conducting broader security and vendor reviews to reduce future risks.

2. Michael Burry Launches Substack and Warns AI Boom Mirrors Dot-Com Bubble

Michael Burry, the famed “Big Short” investor known for calling the 2008 housing crash, has launched a paid Substack newsletter titled Cassandra Unchained shortly after closing his hedge fund, Scion Asset Management. Burry insists he is not retired and says the blog now has his “full attention.” In early posts, he compares today’s AI boom to the 1990s dot-com era, warning that nearly $3 trillion in projected AI infrastructure spending over the next three years shows classic bubble behavior. He also criticizes tech heavyweights such as Nvidia and Palantir, questioning their accounting practices and the sustainability of current valuations. Shutting down his fund, Burry says, frees him from regulatory and compliance constraints that previously limited how candid he could be in public communications. (Source: Reuters)

Key Takeaways

  • Burry Goes Independent: His new Substack, priced at $39 per month, has already attracted more than 21,000 subscribers.
  • AI Bubble Concerns: Burry argues that current AI infrastructure spending and investor enthusiasm resemble the excesses of the dot-com era.
  • Big Tech Under Scrutiny: He has sharpened criticism of companies like Nvidia and Palantir, questioning their growth assumptions and accounting choices.

3. Nvidia Shares Drop as Google Considers Selling AI Chips to Meta

Nvidia’s stock fell after a report indicated that Google is in talks with Meta to sell its custom tensor processing unit (TPU) AI chips for use in Meta’s data centers starting in 2027. This would mark a shift from Google’s current approach of renting access to TPUs through Google Cloud toward directly selling chips to major customers. The report also said Google is pitching TPUs to other clients and could potentially capture as much as 10% of Nvidia’s annual revenue. The news added to investor worries that Nvidia’s biggest customers—such as Google, Amazon, and Microsoft, all of which are developing their own AI chips—are becoming formidable competitors. Amid broader concerns about an AI bubble and “circular” AI investment structures, Nvidia responded by praising Google’s AI progress and reaffirming that its own business remains fundamentally sound and transparent. (Source: Yahoo Finance)

Key Takeaways

  • Google May Sell TPUs Externally: Talks with Meta suggest Google could evolve from cloud-only chip access to directly selling AI hardware.
  • Competition for Nvidia Intensifies: Google, Amazon, and Microsoft’s in-house AI chips pose growing threats to Nvidia’s dominance.
  • AI Bubble Fears Linger: Stock moves and criticism from investors like Michael Burry feed concerns about froth in the AI sector.

4. Anthropic Unveils Claude Opus 4.5 Amid Intensifying AI Model Race

Anthropic introduced Claude Opus 4.5, calling it its most powerful AI model so far and positioning it as the top performer for coding, AI agents, and computer-use tasks. The company says Opus 4.5 outperforms Google’s Gemini 3 Pro and OpenAI’s GPT-5.1 and GPT-5.1-Codex-Max on software engineering benchmarks. Anthropic also highlighted the model’s creative problem-solving abilities, noting that in one airline customer-service benchmark, Opus 4.5 technically “failed” by solving the user’s problem in an unanticipated way that still helped the customer. The launch comes as Gemini 3 reshapes the competitive landscape, Meta’s Llama 4 Behemoth continues to face delays, and the cost of building frontier AI models soars. Backed by large chip deals with Amazon and Google, Anthropic is reportedly on track to break even by 2028, earlier than OpenAI’s projected timeline. (Source: Yahoo Finance)

Key Takeaways

  • New Flagship Model: Claude Opus 4.5 is positioned as best-in-class for coding, agents, and advanced computer-use scenarios.
  • Creative Problem Solving: The model can find unconventional solutions, occasionally breaking benchmarks while still successfully helping users.
  • High-Cost, High-Stakes Race: Massive chip deals and huge infrastructure spending underscore how expensive leading the AI model race has become.

5. Gemini 3 Shows Google’s Biggest Advantage Over OpenAI

With the launch of Gemini 3, Google is showcasing its “full-stack” advantage over OpenAI. Google controls the entire AI pipeline: DeepMind researchers build the models, in-house TPUs train them, Google Cloud hosts them, and products like Search, YouTube, and the Gemini app deliver them to users. For the first time, Google rolled out a new flagship AI model directly into Google Search on day one via an “AI mode,” eliminating friction for users who might otherwise need to download an app or visit a separate site. This end-to-end control lets Google move quickly and avoid the dependency and circular financing issues some rivals face. However, OpenAI still holds a powerful branding edge, as “ChatGPT” has effectively become shorthand for AI in the public’s mind. Analysts say Gemini 3 may be the clearest sign yet that Google is finally aligning its vast technical and distribution resources into a cohesive AI strategy. (Source: Business Insider)

Key Takeaways

  • Full-Stack Advantage: Google owns everything from chips to cloud to consumer apps, allowing tighter integration and faster deployment of Gemini 3.
  • AI Mode in Search: Integrating Gemini 3 directly into Google Search puts advanced AI tools in front of users instantly, with minimal friction.
  • Branding Battle Ahead: While Google has the infrastructure edge, OpenAI’s ChatGPT still dominates public awareness, setting up a long-term branding showdown.
Author: Malik D. CPA, CA, CISA. The opinions expressed here do not necessarily represent UWCISA, UW,  or anyone else. This post was written with the assistance of an AI language model. 

Friday, February 14, 2025

The Future of AI & Materials: Major Lawsuits, Breakthroughs, and Policy Shifts

JD Vance Slams AI Regulations, Widening U.S.-Europe Divide

At the Artificial Intelligence Action Summit in Paris, U.S. Vice President JD Vance criticized Europe’s stringent AI regulations, arguing they could stifle innovation. His remarks highlighted a growing global divide on AI governance, with the U.S. favoring minimal restrictions, Europe enforcing strict policies, and China expanding state-backed AI. The U.S. notably abstained from signing a global AI pledge signed by over 60 nations, including China, further isolating itself on the issue. Vance’s speech, his first major policy address as vice president, framed AI as a pivotal economic force and emphasized the Trump administration’s commitment to free-market AI development. European leaders, however, defended their approach, citing safety and public trust. Meanwhile, China promoted open-source AI while simultaneously tightening domestic controls. The summit underscored the global power struggle over AI dominance, as well as growing tensions between the U.S. and its allies over regulatory approaches.

Key Takeaways:
  • U.S. vs. Europe on AI: Vance warned that overregulation could hinder AI innovation, putting the U.S. at odds with Europe’s strict oversight.
  • China’s AI Strategy: China supported a global AI pledge while expanding state-backed AI at home, further complicating the international landscape.
  • Global AI Race: The summit revealed intensifying competition between the U.S., Europe, and China to set AI standards and maintain technological leadership.

(Source: CTV News)


AI Copyright War: Cohere Faces Lawsuit from Leading Media Companies

A coalition of major publishers, including The Toronto Star, Forbes, The Atlantic, The Guardian, Vox Media, and Politico, has filed a lawsuit against Canadian AI firm Cohere, alleging that the company used copyrighted content without permission to train its generative AI models. The lawsuit, filed in a New York court, demands damages and a permanent injunction to prevent Cohere from reproducing their work. The plaintiffs argue that AI companies profiting from journalism without compensation threaten the media industry, which is already struggling with declining ad revenue. Cohere, valued at $5.5 billion, dismissed the lawsuit as “misguided and frivolous,” asserting that it follows responsible AI training practices. The case is part of a growing legal battle between publishers and AI firms, as media companies push for legal precedents to protect journalistic content from unauthorized AI use.

Key Takeaways:
  • Publishers vs. AI: Major media companies accuse Cohere of using their content without permission and demand financial compensation.
  • AI Copyright Challenges: The case reflects broader legal battles as publishers seek to establish protections against unauthorized AI training on their work.
  • Cohere’s Response: The AI company denies wrongdoing, calling the lawsuit baseless and insisting it adheres to responsible AI practices.

(Source: The Star)


Microsoft Study Warns AI Dependence Erodes Critical Thinking

A new study by Microsoft and Carnegie Mellon University warns that excessive reliance on AI tools can erode critical thinking skills. Researchers found that knowledge workers who trusted AI to complete tasks tended to disengage mentally, particularly with low-stakes work, leading to diminished problem-solving abilities. The study also highlighted that AI-assisted users produced less diverse solutions, raising concerns about creativity and independent thought. Conversely, those skeptical of AI’s accuracy were more likely to engage critically and improve AI-generated content. While AI can enhance efficiency, the study cautions against overdependence, as it may weaken cognitive skills over time.



Key Takeaways:

  • AI Weakens Critical Thinking: Workers relying heavily on AI became less engaged and struggled to think independently.
  • Reduced Creativity: AI users generated more homogenous results compared to those working without AI assistance.
  • Over-Reliance Risk: While AI can improve efficiency, blindly trusting it may lead to cognitive decline and poor decision-making.

(Source: Gizmodo)


Altman Dismisses Musk’s OpenAI Takeover Bid as a ‘Disruption Tactic’

OpenAI CEO Sam Altman has dismissed Elon Musk’s $97.4 billion takeover bid as a “tactic to mess with us,” asserting that the nonprofit controlling OpenAI is not for sale. While Musk’s lawyer claimed the offer was sent to OpenAI’s outside counsel, Altman stated that the board had not officially received or reviewed it but planned to reject it. Musk, who co-founded OpenAI in 2015 before leaving over strategic disagreements, has since launched his own AI company, xAI. The bid comes as OpenAI seeks $40 billion in funding to transition into a for-profit entity, raising legal questions about how nonprofit assets are valued in the shift.

Key Takeaways:
  • Altman Rejects Musk’s Bid: OpenAI’s CEO dismissed Musk’s $97.4 billion takeover offer as a disruption tactic, insisting the company is not for sale.
  • Nonprofit to For-Profit Transition: OpenAI’s planned shift to a for-profit model is under legal scrutiny to ensure fair valuation of its nonprofit assets.
  • Musk’s AI Ambitions: Having left OpenAI, Musk now leads xAI and remains a key player in the AI industry, further complicating his takeover attempt.

(Source: Reuters)


Waterloo Researchers Develop Sustainable Graphene Ink for Industry & Environment

Researchers at the University of Waterloo have developed an eco-friendly, 3D-printable graphene ink that could revolutionize applications in healthcare, industry, and environmental science. Unlike traditional graphene powders, which are difficult to manipulate, this water-based ink maintains conductivity without requiring chemical additives or solvents.

Key Takeaways:
  • Breakthrough in Graphene Printing: Researchers created a 3D-printable, eco-friendly graphene ink that maintains conductivity without chemical additives.
  • Wide Applications: The ink could be used for wearable sensors, lightweight automotive parts, printed electronics, and environmental cleanup.

(Source: University of Waterloo)

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a Sr. AI Product Manager who is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.

Monday, March 11, 2024

Five Top Tech Takeaways: Google Faces an Unexpected AI Competitor, AI Overreach at Work, Sam's Back, SEC's Climate Disclosure Rules, and Apple $2 billion Fine

From Oversight to Overreach? AI's Expanding Role in Monitoring Employees

Robo-Surveillance


In Canada, the rapid advancement of artificial intelligence (AI) has significantly increased the capabilities for workplace surveillance, including tracking employees' locations, monitoring their computer activities, and even assessing their moods during shifts. Despite the growing prevalence of such technologies, experts highlight a concerning lag in Canadian laws to adequately address these changes. Current legislation, such as Ontario's requirement for employers to disclose their electronic monitoring policies, provides limited protections for employees against intrusive monitoring practices. Critics argue that while AI can streamline hiring processes and offer career assistance, its use in employee surveillance often lacks transparency and can be excessively invasive. The federal government's Bill C-27 aims to regulate "high-impact" AI systems but is criticized for not specifically addressing worker protections. As AI technology becomes more entrenched in workplace practices, there is a pressing need for comprehensive legal frameworks that protect employees' privacy and rights in the face of pervasive monitoring.

Key Takeaways:
  • AI-driven workplace surveillance is increasing in Canada, with technologies capable of tracking and analyzing employees' activities in unprecedented ways.
  • Existing Canadian laws fall short in protecting employees from the potential overreach of these surveillance technologies.
  • Calls for more robust legislation and clearer guidelines on the use of AI in workplace monitoring are growing, amid concerns over privacy and the invasive nature of such practices.
(Source: CTV News)

SEC Finalizes Climate Disclosure Rules for Public Companies

The Securities and Exchange Commission (SEC) has finalized new regulations that mandate public companies to disclose their direct greenhouse gas emissions and the climate-related risks that might significantly affect their financial health. This decision, emerging from a protracted two-year review and intense lobbying from various sectors, marks a significant but contentious step towards enhancing investor access to crucial climate-related information. While the SEC has opted to exclude the requirement for businesses to report their indirect (Scope 3) emissions—citing concerns over the complexity and burden of such disclosures—this move has attracted criticism from environmental advocates who argue that it significantly underrepresents the total emissions footprint of companies. Nevertheless, the rule aims to provide investors with consistent, reliable climate risk disclosures, encompassing direct operations and energy purchases (Scope 1 and Scope 2 emissions), and necessitates reporting on how climate-related events like wildfires and floods could materially impact companies.

Key Takeaways:

  • The SEC has implemented new rules requiring public companies to disclose their direct greenhouse gas emissions and climate-related risks that could materially impact their financials.
  • Indirect emissions reporting (Scope 3) has been excluded from the requirements, sparking criticism for underrepresenting companies' total emissions.
  • Despite the controversy, the rule aims to enhance transparency and reliability in climate risk disclosures for investors.
(Source: The Wall Street Journal)

Apple's Antitrust Awakening: A $2 Billion Fine for Restricting Music Streaming Competition

The European Union has imposed a €1.84 billion ($2 billion) antitrust fine on Apple, marking its first-ever penalty against the US tech giant for anti-competitive practices. This historic fine was levied due to Apple's restrictions that prevented rival music streaming services, like Spotify, from informing iPhone users about cheaper subscription options available outside of the Apple App Store. The EU's competition and digital chief, Margrethe Vestager, criticized Apple for abusing its dominant market position, thereby denying European consumers the freedom to choose their music streaming services under fair terms. Apple countered the EU's decision, claiming it was made without credible evidence of consumer harm and stressed the competitive nature of the app market. Apple plans to appeal the fine, which constitutes 0.5% of its global annual turnover, arguing that it ensures a level playing field for all app developers on its platform. The fine includes a significant lump sum intended to deter not only Apple but other large tech firms from future violations of EU antitrust laws.

Key Takeaways:
  • Apple has been fined €1.84 billion by the EU for antitrust violations related to its App Store practices.
  • The fine targets Apple's restrictions on music streaming services, which hindered competitors from offering cheaper subscription options outside of the App Store.
  • Apple disputes the EU's findings, citing a lack of evidence for consumer harm and plans to appeal the decision.
Et Tu, Walmart? The Unexpected AI Challenger to Google's Search Dominance

Walmart's introduction of generative AI search capabilities marks a significant move in the retail industry, potentially challenging Google's dominance in the search engine market. Walmart CEO Doug McMillon highlighted the rapid improvement and customer-focused enhancement of the search experience within Walmart's app, powered by generative AI. This innovation not only streamlines shopping for events by providing comprehensive, theme-based recommendations but also establishes Walmart as a technological frontrunner in retail. The shift towards AI-enhanced searches by retailers like Walmart and others suggests a changing landscape where traditional search engines may lose their grip on the initial stages of the consumer shopping journey, as these platforms can offer more targeted, efficient, and intuitive shopping experiences directly within their ecosystems.

Key takeaways:
  • Walmart's generative AI search feature aims to simplify event planning and shopping, challenging traditional search engine models.
  • This move reflects Walmart's strategic emphasis on technology and innovation to stay ahead in the retail sector.
  • The evolving AI search capabilities among online retailers could diminish Google's role in the initial steps of consumer shopping, potentially altering the search and shopping ecosystem.
(Source: CNBC)

Sam's on Board: OpenAI Announces Board Expansion and Enhanced Oversight Measures
OpenAI has announced the integration of three new board members and the reinstatement of CEO Sam Altman following an independent review by WilmerHale, which concluded that Altman's previous firing was unjustified. The investigation revealed no concerns over product safety, OpenAI's financials, or development pace but highlighted a trust breakdown between Altman and the former board. The review criticized the board's hasty decision-making process and lack of full inquiry. Altman, acknowledging his missteps in handling disagreements, has committed to improving his approach. The board's decision to reappoint Altman is accompanied by governance enhancements, including new guidelines and a whistleblower hotline, aiming to strengthen accountability and oversight within the organization.

Key takeaways:
  • An independent review found Sam Altman's firing by the previous OpenAI board was unwarranted, attributing it to a trust breakdown rather than product or financial concerns.
  • OpenAI reinstated Sam (as a Board Member) and has introduced three new board members and implemented governance enhancements, including new guidelines and a whistleblower hotline. Per Ars Technica, they include: "The newly appointed board members are Dr. Sue Desmond-Hellmann, former CEO of the Bill and Melinda Gates Foundation; Nicole Seligman, former EVP and global general counsel of Sony; and Fidji Simo, CEO and chair of Instacart."
  • Sam Altman has acknowledged his mistakes in dealing with board disagreements and committed to handling such situations with more grace in the future.
(Source: Ars Technica)

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist who is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.



Wednesday, March 6, 2024

Five Top Tech Takeaways: Claude3 is Live in Canada, Elon Sues OpenAI, OpenAI Responds, NVIDIA hits $2 Trillion & IEEE on Prompt Engineering


The End of Prompt Engineering? How AI Is Outsmarting Humans in Optimization

A Self-Prompting Robot

Prompt engineering, once a burgeoning field following ChatGPT's launch, is undergoing a transformative shift. New research suggests the task of optimizing prompts for large language models (LLMs) and AI art or video generators might be better performed by the models themselves, rather than human engineers. This development is spurred by findings from Rick Battle and Teja Gollapudi at VMware, who, after testing various prompt engineering strategies, concluded that there's a notable inconsistency in their effectiveness across different models and datasets. Instead, autotuning prompts using the model to generate optimal prompts based on specified success metrics has shown to significantly outperform manual optimization efforts, often generating surprisingly effective yet unconventional prompts. Similar advancements are seen in image generation, where Intel Labs' Vasudev Lal's team developed NeuroPrompts, automating the enhancement of prompts for image models to produce more aesthetically pleasing outputs. Despite these technological advancements suggesting a diminished role for human-led prompt engineering, the need for human oversight in deploying AI in industry contexts—emphasized by emerging roles such as Large Language Model Operations (LLMOps)—remains crucial. This signifies not the end, but the evolution of prompt engineering, with its practices likely integrating into broader AI model management and deployment roles.

Key Takeaways:
  • Research indicates that the practice of manually optimizing prompts for LLMs may be obsolete, with models capable of generating more effective prompts autonomously.
  • Innovations like autotuned prompts and NeuroPrompts demonstrate that AI can surpass human capabilities in optimizing inputs for both language and image generation tasks.
  • Despite the potential decline of traditional prompt engineering, the demand for human expertise in integrating and managing AI technologies in commercial applications continues, likely evolving into roles like LLMOps.

(Source: IEEE Spectrum)

Elon Musk Sues OpenAI: Alleges Company Abandoned its Mission

Elon Musk has filed a lawsuit against OpenAI and its CEO, Sam Altman, in California Superior Court, alleging they diverged from the organization's original non-profit, open-source mission to develop artificial intelligence for humanity's benefit, not for profit. Musk, a co-founder of OpenAI, accuses the company of breaching their founding agreement by prioritizing financial gains, particularly through its partnership with Microsoft and the release of GPT-4. He seeks a court ruling to make OpenAI's research public and restrict its use for Microsoft or individual profit, particularly concerning technologies GPT-4 and the newly mentioned Q*. OpenAI executives have dismissed Musk's claims, emphasizing resilience against such attacks. This legal action underscores Musk's ongoing concerns with AI development's direction and OpenAI's partnership dynamics, especially as he ventures into AI with his startup, xAI, aiming to create a "maximum truth-seeking AI". 

Key Takeaways:
  • Elon Musk sues OpenAI for deviating from its foundational mission, emphasizing the conflict over the commercialization of AI technologies.
  • Musk demands OpenAI's AI advancements, including GPT-4 and Q*, be made publicly accessible and not used for Microsoft's or anyone's financial benefit.
  • The lawsuit highlights Musk's broader AI concerns and efforts to influence the field through his own AI startup, xAI, amidst regulatory scrutiny of OpenAI's actions.
(Source: Reuters)

OpenAI Responds to Elon's Lawsuit: 'Here's Our Side of the Story'

Key Quote: "We're sad that it's come to this with someone whom we’ve deeply admired—someone who inspired us to aim higher, then told us we would fail, started a competitor, and then sued us when we started making meaningful progress towards OpenAI’s mission without him."

OpenAI discusses its mission to ensure that artificial general intelligence (AGI) benefits all of humanity, addressing its funding journey, relationship with Elon Musk, and its commitment to creating beneficial AGI. Initially envisioning a substantial need for resources, OpenAI faced challenges in securing enough funding, leading to considerations of a for-profit structure. Elon Musk, an early supporter and potential major donor, proposed different pathways for OpenAI, ultimately leaving to pursue his own AGI project. Despite these challenges, OpenAI emphasizes its progress in making AI technology broadly available and beneficial, from improving agricultural practices in Kenya and India to preserving the Icelandic language with GPT-4. The organization underscores its dedication to advancing its mission without compromising its ethos of broad benefit, even as it navigates complex relationships and the immense resource requirements of AGI development. 

Key Takeaways:
  • OpenAI acknowledges the immense resources needed for AGI development, leading to explorations of a for-profit model to support its mission.
  • Elon Musk's departure from OpenAI highlighted differing visions for the organization's structure and approach to AGI, with Musk pursuing a separate AGI project within Tesla.
  • Despite funding and structural challenges, OpenAI remains committed to creating AI tools that benefit humanity broadly, showcasing impactful applications worldwide.
(Source: OpenAI)

Meet Claude 3: Anthropic's Latest Leap in Generative AI Technology

Anthropic introduces the Claude 3 model family, comprising three advanced models: Claude 3 Haiku, Claude 3 Sonnet, and Claude 3 Opus, each offering escalating levels of intelligence, speed, and cost-efficiency tailored to diverse applications. The models, which are now accessible via claude.ai and the Claude API in 159 countries, mark significant advancements in AI capabilities, including enhanced analysis, forecasting, content creation, and multilingual conversation abilities. Claude 3 Opus, the most sophisticated of the trio, excels in complex cognitive tasks, showcasing near-human comprehension and fluency. The Claude 3 series also features rapid response times, superior vision capabilities, reduced refusal rates, increased accuracy, extended context understanding, and near-perfect recall abilities. Furthermore, Anthropic emphasizes the responsible design of these models, focusing on safety, bias mitigation, and transparency. The introduction of the Claude 3 family signifies a substantial leap in generative AI technology, promising to redefine industry standards for intelligence, application flexibility, and user trust.

Key Takeaways:
  • Anthropic unveils the Claude 3 model family, enhancing the AI landscape with Claude 3 Haiku, Sonnet, and Opus, each designed for specific performance and cost requirements.
  • The models demonstrate unprecedented capabilities in analysis, content creation, multilingual communication, and possess advanced vision and recall functionalities.
  • Anthropic prioritizes responsible AI development, emphasizing safety, bias reduction, and transparency across the Claude 3 series, maintaining a commitment to societal benefits.

(Source: Anthropic).


Nvidia at $2 Trillion: Leading the Charge in the AI Chip Race

Nvidia has reached a monumental $2 trillion valuation, showcasing its pivotal role in the artificial intelligence (AI) revolution, driven by an insatiable demand for its graphics processing units (GPUs). This surge in valuation makes Nvidia one of the most valuable U.S. companies, only trailing behind tech giants Microsoft and Apple. Nvidia's dominance in the GPU market, with over 80% market share, has made its chips a critical asset for developing new AI systems, highlighting the chips' importance in accelerating AI advancements. Despite facing production constraints, Nvidia continues to report impressive sales figures, with its quarterly sales hitting $22.1 billion and forecasting $24 billion for the upcoming quarter. The company's strategic pivot to AI early on has fueled its rapid growth, with its GPUs becoming essential for training large language models like OpenAI's ChatGPT. Nvidia's journey from a focus on PC gaming graphics to leading the AI chip market underlines the transformative power of AI technology and Nvidia's central role in this evolution.

Key Takeaways:
  • Nvidia's valuation has soared to $2 trillion, emphasizing its critical role in the AI industry and making it one of America's most valuable companies.
  • The company's GPUs, essential for AI development, are in high demand, with Nvidia holding over 80% of the market share.
  • Despite production challenges, Nvidia's sales and forecasts significantly exceed expectations, driven by its strategic focus on AI technologies.

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist who is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.

Thursday, January 18, 2024

Five Top Tech Takeaways: AI Aces Math Test, NYT sues OpenAI for Copyrights, Samsung's AI Phones, Meta's AI Shift, and EVs Found Frozen in Chicago



DeepMind's AlphaGeometry: A Breakthrough in AI's Math Abilities

Google DeepMind's latest AI system, AlphaGeometry, represents a significant step in AI development by successfully solving complex high-school geometry problems. This advancement, showcased in a Nature publication, indicates a new level of reasoning and planning in AI, a crucial aspect for future artificial general intelligence (AGI). Unlike current generative AI models that struggle with multi-step problems like advanced math, AlphaGeometry was trained on a large, synthetically generated dataset. Though not yet part of Google's Gemini AI model, AlphaGeometry has potential applications in educational settings and has been open-sourced to encourage widespread use and development.


Key Takeaways:

  • AlphaGeometry by DeepMind solves high-school level geometry, marking a major AI milestone.
  • The system overcomes a common AI challenge of multi-step reasoning and planning.
  • Google open-sources AlphaGeometry, paving the way for broader AI educational applications.
(Source: BNN Bloomberg)

New York Times vs. Tech: A Legal Showdown Over AI and Copyright

The New York Times has filed a lawsuit against OpenAI and Microsoft, alleging copyright infringement due to the use of the Times' articles to train their large language models, which power ChatGPT and Copilot. The lawsuit claims that these AI models can produce content that either directly replicates or closely summarizes the Times' articles, impacting the publication's relationship with its readers and financial streams such as subscriptions and advertising. The complaint further asserts that these AI technologies endanger high-quality journalism by undermining news outlets' ability to protect and monetize their content. The Times argues that while the use of its content has been financially beneficial for Microsoft and OpenAI, its attempts to negotiate fair compensation have been unsuccessful. OpenAI has expressed surprise at the lawsuit, noting ongoing discussions with the Times, while Microsoft has not yet responded to the allegations. In addition to seeking damages, the Times is requesting the court to prevent the use of its content in training AI models and to remove its content from existing datasets.

Key Takeaways:
  • The New York Times accuses OpenAI and Microsoft of copyright infringement for using its content in training AI models like ChatGPT and Copilot.
  • The lawsuit highlights concerns about AI's impact on journalism and the financial implications for news outlets.
  • The Times seeks compensation, removal of its content from AI datasets, and a halt to its future use in AI model training.
(Source: The Verge)

Galaxy S24 Series: Samsung's Bid in the AI Smartphone Race

Samsung's Galaxy S24 and S24 Plus have debuted with a focus on AI, incorporating features like search, translation, and message composition enhancements, processed mainly by Samsung's Gauss generative AI model. Despite sporting familiar designs, these models offer improvements in note organization, real-time language translation, and enhanced photo editing, powered by AI. However, some features seem derivative of existing technologies, and there's skepticism about Samsung's commitment to AI as a sustainable innovation rather than a fleeting trend. The hardware updates include a better camera system and slightly larger batteries, while retaining a design reminiscent of previous models.

Key Takeaways:
  • Samsung introduces AI-focused features in Galaxy S24 series, emphasizing generative AI capabilities.
  • The Galaxy S24's design remains largely unchanged, raising questions about Samsung's innovation focus.
  • Skepticism exists over whether Samsung's AI integration is a true advancement or just a trend-following move.
(Source: Engadget)

Tesla Charging Woes in Chicago's Deep Freeze
In Chicago, numerous Tesla vehicles were unable to charge at Supercharger stations during an extreme cold wave, with temperatures dropping to 2F (-19C) and feeling like -20F (-29C) with wind chill. This situation led to several Teslas being towed to local service centers due to their inability to start charging. While cold weather commonly impacts both electric and gas-powered vehicles, this incident highlights a rare case where electric vehicles, specifically Teslas, couldn't charge at all. The issue underscores the challenges that extreme weather can pose for electric vehicle infrastructure and functionality. 

Key Takeaways:
  • Extreme cold in Chicago led to Tesla vehicles being unable to charge at Supercharger stations.
  • The severe weather resulted in several Teslas needing to be towed for service.
  • This incident highlights the impact of extreme temperatures on electric vehicle charging capabilities.
(Source: Electrek)

Meta's AI Pivot: Integrating Teams, Scaling Up GPU Resources

Meta is intensifying its AI initiatives by integrating its AI research and generative AI teams and significantly expanding its GPU infrastructure, with plans to acquire around 600,000 GPUs, including 350,000 from Nvidia, by the end of the year. This move positions Meta among the leaders in technology infrastructure, surpassing Amazon and Oracle's GPU counts. Alongside this expansion, Meta has launched several AI-driven products, such as the Llama language model, AI-enabled ad tools, and a chatbot for Ray-Ban smart glasses. These efforts align with CEO Mark Zuckerberg's focus on enhancing AI capabilities to support Meta's transition towards an AR/VR-centric metaverse.

Key Takeaways:
  • Meta is merging its AI research and generative AI teams to bolster its AI product development.
  • The company plans to amass a vast GPU arsenal, aiming for around 600,000 units, to support its AI ambitions.
  • These developments tie into Meta's strategic shift towards an AR/VR-driven metaverse, as envisioned by Zuckerberg.
(Source: Reuters)

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist that is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.

Monday, November 20, 2023

Five Top Tech Takeaways: OpenAI's Sam Altman FIRED on Friday, hired at MICROSOFT on Monday + Hackers Take Advantage of SEC Rule + 3 other stories

Empty AI Throne


Drama in Silicon Valley: Sam Altman Fired from OpenAI, Hired at Microsoft

In a surprising turn of events that has sent ripples through the generative AI industry, Sam Altman, the CEO of OpenAI, was abruptly dismissed from his position. This news, which broke late last Friday, has sparked a flurry of speculation and discussion among industry experts and enthusiasts alike.

The Unfolding Drama at OpenAI

OpenAI, known for its groundbreaking work in the field of artificial intelligence, released a rather cryptic press statement regarding Altman's departure. The statement hinted at a lack of transparency with the board, leading to his termination. This board, a non-profit entity, oversees both the non-profit and commercial arms of OpenAI, indicating that Altman's dismissal wasn't just a mere managerial shuffle but a significant shift in the organization's direction.

Matt Wolfe of Future Tools provided an insightful breakdown of the speculative reasons behind Altman's firing. It appears that a fundamental conflict emerged between the commercial demands placed on OpenAI's applications and the non-profit trajectory envisioned by the board. This conflict, seemingly at the heart of Altman's dismissal, points to a deeper rift within the company regarding the future of generative AI and OpenAI's role in it. Here are some key quotes from his take:

  • On Microsoft's Reaction to Altman's Ouster: "Microsoft claims that they were completely blindsided by the decision... Satya Nadella from Microsoft himself had a rather cold statement about the whole ordeal."
  • Board Dynamics and Decision: "The board voted to boot out Sam Altman... the board is just six seats total... Greg Brockman and Sam Altman weren't in on this decision... much of the speculation leaning towards Ilia [Sutskever] sort of masterminding the push out of Sam."
  • Altman's Contributions and Leadership: "Sam Altman almost singlehandedly brought this company to an 80 plus billion dollar valuation... it was under Sam's leadership that they managed to get this company to over a 100 million active users."
  • Speculations on the Reasons for Altman's Departure: "These two philosophies were at odds with each other... Ilia and the more scientific academic side of the company weren't super excited about things like being able to build your own GPTs and then sell them in a GPT store."
  • Safety vs. Rapid Growth: "People like Ilia... want to make sure that the security, the privacy, all of these implications... are really being thought through... where Sam Altman is on the side of let's get it out to the world, let's let the world use it, test it, move fast and break things."

Microsoft's Strategic Move

In a twist that added more intrigue to the situation, Microsoft, through a tweet from CEO Satya Nadella, announced hiring both Sam Altman and Greg Brockman into a new division within the tech giant. This move by Microsoft is not just a mere hiring of talent but a strategic acquisition of expertise in a field rapidly shaping technology's future. 



The Ripple Effect of Altman's Departure

Altman's firing and the subsequent hiring by Microsoft have had a noticeable impact on OpenAI. Several employees resigned in protest, underscoring the internal divisions and differing visions for the company's future. This situation highlights the ongoing tension between commercial aspirations and the ethical, non-profit motivations in the rapidly evolving AI industry. According to CNN, "Emmett Shear, the former CEO of Amazon’s streaming service Twitch, will join OpenAI as interim CEO. He replaces Mira Murati, who was named interim CEO when Altman was fired. She will return to her role as OpenAI’s chief technology officer."

Looking Ahead: The Future of AI Leadership

As we observe these developments, it's essential to ponder the broader implications for the AI industry. With Altman's expertise now under Microsoft's umbrella, how will this shift the dynamics of innovation and leadership in AI? Moreover, what does this mean for OpenAI's future and its commitment to balancing commercial success with ethical AI development?

And now for four other stories!

(Sources: Matt Wolfe, CNN, WSJ)

Ransomware Gang Turns to SEC for New Extortion Tactic

In a groundbreaking move, the notorious ransomware gang ALPHV/BlackCat filed a "failure to report" complaint against its victim, MeridianLink, with the U.S. Securities and Exchange Commission (SEC). This incident, reported by SC Media, marks the first instance of hackers using the SEC complaint system as a weapon against their victims. The complaint alleges that MeridianLink did not disclose a significant data breach in compliance with SEC regulations. MeridianLink, a digital lending company, acknowledged the cyber incident but claimed no sensitive user data was compromised. This situation highlights a new dimension in cyber extortion, where legal systems and disclosure regulations can be manipulated by cybercriminals.

Key Takeaways:
  • Innovative Cyber Extortion: This incident represents a novel form of cyber extortion, where legal requirements for breach disclosure are exploited by ransomware groups.
  • Regulatory Implications: The manipulation of SEC disclosure rules by hackers underscores the need for companies to be vigilant about regulatory compliance in the event of data breaches.
  • Rising Threat of Ransomware Groups: ALPHV/BlackCat's actions demonstrate the evolving tactics of ransomware groups, posing new challenges for cybersecurity and legal compliance.

(Source: SC Media).

Fidelity Joins the Crypto ETF Race with Ethereum Fund

Fidelity Investments is making a significant move in the cryptocurrency market by seeking to create an exchange-traded fund (ETF) based on Ethereum's ether (ETH), as reported by CoinDesk. This initiative places Fidelity alongside BlackRock, another financial giant, in a deeper commitment to cryptocurrency investments. The proposed Fidelity Ethereum Fund, which would be listed by Cboe Global Markets, is still pending approval from the U.S. Securities and Exchange Commission (SEC). Both Fidelity and BlackRock are also interested in launching Bitcoin (BTC) ETFs, though these too await SEC approval. The introduction of ETFs for major cryptocurrencies like BTC and ETH could potentially revolutionize the crypto market, making it more accessible to average investors through conventional brokerage accounts.

Key Takeaways:
  • Expansion into Crypto ETFs: Fidelity's plan to launch an Ethereum ETF signifies a growing interest among major financial firms in cryptocurrency-based investment products.
  • Regulatory Hurdles: The success of these ETFs hinges on the approval of the U.S. SEC, which is currently deliberating on both Ethereum and Bitcoin ETFs.
  • Increased Accessibility for Investors: If approved, these ETFs could dramatically simplify investing in cryptocurrencies, attracting new investors and potentially impacting the crypto market.
(Source: CoinDesk).
 
Microsoft Ignite 2023: The Rise of AI-Assisted Work Environments

Last week, Microsoft announced significant innovations in its Copilot technology at Microsoft Ignite 2023, introducing Microsoft Copilot Studio and new features in Copilot for Microsoft 365. Copilot for Microsoft 365, now generally available for enterprises, integrates seamlessly across Microsoft's platforms, enhancing productivity and creativity. It has been adopted by major companies like Visa, BP, Honda, Pfizer, and Chevron. The new Copilot Studio is a low-code tool allowing customization of Copilot for Microsoft 365 and the creation of standalone copilots. This development represents a significant leap in AI-assisted work environments, offering sophisticated capabilities for personalization, mathematical analysis, and collaboration. Here is a promotional video from the company.

Key Takeaways:
  • Widespread Enterprise Adoption: Leading global companies are already leveraging Copilot for Microsoft 365, indicating its significant impact on enterprise productivity.
  • Customization with Copilot Studio: The introduction of Copilot Studio enables businesses to tailor Copilot to their specific needs, enhancing its utility in various professional scenarios.
  • Enhanced Collaboration and Analysis Tools: Copilot's integration into Microsoft 365 apps facilitates advanced collaboration and data analysis, transforming the way professionals interact with technology at work.
(Source: Microsoft 365 Blog).

Emu Video and Edit: Meta's Leap into AI-Driven Video Creation

Meta Platforms has recently launched two innovative AI-based video editing features, as Reuters reported. These features, designed for use on platforms like Instagram and Facebook, represent a significant advancement in the realm of digital content creation. The first feature, Emu Video, generates four-second videos based on a user's prompt, which can include a caption, photo, or image, along with a description. The second feature, Emu Edit, simplifies the video editing process by allowing users to modify videos using text prompts. These tools build upon the existing Emu model, which creates images in response to text prompts and underpins generative AI technology. This technology is also used in AI image editing tools for Instagram, enabling users to alter a photo's visual style or background. The introduction of these tools by Meta highlights the company's commitment to advancing in the AI space, positioning it to compete with other tech giants like Microsoft, Google, and Amazon.

Comment:  
As noted in a previous UWCISA blog post, advances in this arena will ultimately bolster user-generated content. Though the tools are not there yet, they speak to the possibilities for regular people to translate their stories into feature-length content. This type of content is likely to become dominant in the not-too-distant future.

Key Takeaways:
  • Innovative Video Editing Tools: Emu Video and Emu Edit represent a leap forward in AI-driven video editing, offering new creative possibilities for social media content.
  • Generative AI Technology: These tools are based on generative AI, showcasing Meta's investment in cutting-edge technology for enhancing user experience.
  • Competitive Advancement in AI: Meta's development of these tools underscores its ambition to be a key player in the AI market, competing with major tech companies.
Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist that is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.

Wednesday, July 26, 2023

Five Top Tech Takeaways: Twitter $20 Billion Brand Bonfire, No Bard for Canada, Apple's GPT and AI Regulations

 

Bonfire of Billions

Musk's Twitter Rebrand: Lighting Up $20 Billion in Brand Value?

Elon Musk's recent decision to rebrand Twitter as "X" and eliminate the iconic bird logo has sparked controversy and is estimated to have wiped out between $4 billion and $20 billion in brand value. The move, which includes a shift in focus towards audio, video, messaging, payments, and banking, has been criticized by analysts and brand agencies who argue that Twitter's brand recognition and cultural influence are invaluable assets. The rebranding has also led to a significant drop in advertising revenue, with advertisers wary of Musk's controversial persona. Despite the backlash, some believe that Musk's personal brand may be powerful enough to carry the new "X" platform forward. (Source: BNN)

Google's Bard Expansion: Canada Left Out in the Cold

Google's AI-powered chatbot, Bard, has expanded globally but has notably excluded Canada, along with countries like China, Russia, Iran, North Korea, Afghanistan, Belarus, and Cuba. This move comes amidst Google's ongoing dispute with the Canadian government over the Online News Act, which mandates tech giants like Google and Meta to negotiate compensation deals with media outlets. The Act aims to balance online advertising revenues, a sector dominated by Google and Meta. In response to the Act, both companies have threatened to block news links from their platforms in Canada. Google's Bard, now available in over 40 languages and more than 230 countries, has not clarified if its exclusion of Canada is directly related to these regulatory disputes. (Source: CTV)

Sam Altman's Eyeball Scans: A New Frontier in Crypto or Privacy Breach?

Worldcoin, a project by OpenAI CEO Sam Altman, has launched a global initiative offering free cryptocurrency in exchange for an eyeball scan to create a digital ID. The project aims to establish a new "identity and financial network" and to verify users as human, not bots. Despite privacy concerns, people in countries like Britain, Japan, and India have participated, with Worldcoin claiming to have issued IDs to over two million people in 120 countries. Critics have raised concerns about potential privacy breaches, but Worldcoin insists that the project is "completely private" and that biometric data is either deleted or stored encrypted. The promise of free cryptocurrency has attracted many participants, despite the potential risks. (Source: CTV)

Apple's AI Ambitions: The Birth of 'Apple GPT'

Apple is reportedly developing its own AI-powered chatbot, internally referred to as "Apple GPT", using a large language model (LLM) framework named "Ajax". The project, which runs on Google Cloud and is built with Google JAX, is still in its early stages with no confirmed plans for public release. Multiple teams within Apple are working on the project, including addressing potential privacy issues. Despite Apple's relative silence in the generative AI space, the company has been integrating AI into its software for years, most notably with Siri. Apple's AI initiative is led by John Giannandrea and Craig Federighi, and a significant AI-related announcement is expected from the company next year. (Source: TheVerge)

AI Giants Commit to New Safety Measures Amid White House Initiative

In an effort to manage the risks associated with artificial intelligence (AI), the Biden administration has reached an agreement with seven major AI companies, including Amazon, Google, Meta Platforms, Microsoft, and OpenAI. The companies have voluntarily committed to implementing more safeguards around AI, such as developing a watermarking system to help users identify AI-generated content, testing their AI systems' security and capabilities before public release, investing in research on the technology's societal risks, and facilitating external audits of system vulnerabilities. While these commitments largely reflect existing safety practices, they lack enforcement mechanisms. The White House is also developing an executive order to govern the use of AI, emphasizing that these commitments are not a substitute for federal action or legislation. (Source: WSJ)

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist that is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.

Tuesday, June 6, 2023

Tech, AI, Auditing & Beyond: 5 Stories from Last Week

Here's a look at 5 things you may have missed from last week

Robot lawyer getting arrested. 

Lawyer gets GPTed: Google the citation, before you submit that legal brief 
A lawyer used OpenAI’s chatbot ChatGPT to research cases for a lawsuit against an airline. He submitted a brief full of fake cases that the chatbot made up. The judge found out and ordered him to explain himself. The lawyer admitted he used the chatbot and did not verify its sources. He asked the chatbot if it was lying and it said no. The judge is considering sanctions for the lawyer and his firm. Chatbots unreliable: This case shows the dangers of using chatbots for research without checking their facts. Chatbots can mimic language patterns but not always tell the truth. Other chatbots like Microsoft’s Bing and Google’s Bard have also lied or made up facts in the past. (Source: TheVerge)

Nvidia: One trillion reasons why we're in the AI boom
US chipmaker Nvidia has reached a market value of more than $1tn, joining a select group of US companies. The firm’s share price surged by more than 30% since last week, after forecasting strong demand for its products due to advances in artificial intelligence (AI). Nvidia’s hardware powers most AI applications today, with one report suggesting it has 95% of the market for machine learning. The firm expects to bring in $11bn in sales in the next quarter, almost 50% more than analysts had expected. AI is seen as the next supercharged growth area, but valuations can be hard to justify. (Source: BBC)

AI Execs: Are they getting frank about their Frankensteins?
Top AI execs (and others who have cashed in on the AI boom) are now warning us about what they have released into the wild. Here is the statement that they released: "Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war." (Source: CBC) 

Bad bots: Tessa advises people with eating disorders to lose weight
AI chatbot named Tessa that was implemented by the U.S. National Eating Disorder Association (NEDA) to help those with eating disorders was implemented to replace human call operators. However, it was taken down after reports that it had started to give out harmful dieting advice. Activist Sharon Maxwell claimed on Instagram that Tessa offered her advice on how to lose weight and recommended counting calories, following a 500 to 1,000 calorie deficit each day and measuring her weight weekly. (Source: NPR, Global)

OSFI on AI: The importance of a robust governance framework 
OSFI, in a recently released report, discusses the importance of a robust governance framework for ensuring that AI models used in the financial industry remain effective, safe, and fair. AI governance was one of the topics discussed at the Financial Industry Forum on Artificial Intelligence (FIFAI) workshops. The conversations touched on four main principles guiding the use and regulation of AI in the financial industry: Explainability, Data, Governance, and Ethics. The Canadian Audit and Accountability Foundation defines governance as structures, systems, and practices an organization has in place to assign decision-making authorities, define how decisions are made, establish an organization’s strategic direction and oversee the delivery of its services. (Source: OSFI)

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist that is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.

Saturday, May 27, 2023

In the Midst of the Writer's Strike, Is AI Set to Take Centre Stage in Hollywood?

Sam Altman, CEO of OpenAI, mentioned something worth reflecting on during a fireside chat with Tobias Lütke (founder and CEO of Shopify) at Toronto's 2023 Elevate conference: 

"If you look at the prediction from maybe 10 years ago maybe even five, I think most experts would have say first AI comes for physical labor. It's going to drive trucks it's going to work in factories. Then it comes from the sort of easier parts of cognitive labor. Then it comes from the stuff that's really hard… Maybe it can write computer code someday - maybe not. And then maybe someday in the distant future (but probably never) it can do creative work. And of course it's gone the exact opposite direction…Almost everybody predicted this wrong."

The quote by Altman summarizes the amazement that many of us experience when interacting with Generative AI, witnessing how it can effortlessly generate high-quality content, whether it's telling a joke in the tone of your favourite comedian or writing a blog post in the style of a famous author.

Not everyone, however, is a fan. Its abilities, though in their infancy, have irked the creative crowd. I am talking about the writers in Hollywood, who are picketing as we speak.

AI: Taking Center Stage within the Scriptwriting Process?

They are worried about the use of artificial intelligence in the movie production process. The writers fear that producers may use AI to write scripts or fill in gaps in unfinished screenplays. This would result in an increased supply of scripts. When the supply of something goes up, the price goes down. That's the way capitalism works. Consequently, the increased use of AI could lead to a decrease in the need for scriptwriters, potentially affecting writers' earnings. While recognizing that this rapidly advancing technology could be a useful tool in some cases, the writers are demanding that production companies agree to certain safeguards regarding its use.

It’s tempting to think that this only applies to those picketing in front of Hollywood. The word “content” may send our minds to art, writing, and movie scripts. However, content generation is not just about the creative crowd. Consider that accountants, lawyers, and consultants are also content generators. Sure, they cater to a different genre and audience. And yes, their content is more likely to make you cry than laugh, it's still content at the end of the day. Moreover, this discourse extends far beyond the confines of movies, television, or streaming platforms, serving as an early warning sign, a proverbial canary in the coal mine, hinting at the impending profound transformations across all sectors and industries.

How good is this technology? Is it really worth protesting?

As they say, seeing is believing. We don’t have to speculate about AI’s script writing powers. We can try it out ourselves. Here is my attempt to do just that. Check it out and see for yourself:

   

Admittedly, the story was terrible.

It is certainly no competition for the quality and the caliber of those protesting in the Sunshine State. Both my wife and Efrim Boritz thought it needed some work. A lot of work. That being said, if we focus on the aesthetics of the story, however, we miss the point. The story, from start to finish, took a grand total of 35 minutes. Here how I generated the story.

Step 1: Fill-in the Narrative Arc

I took the five elements of Narrative Arc and completed it for my story. This was crafted in the following prompt:

Prompt: Draft the story using the following

“Exposition:  A group of auditors working on an audit file for a bank in 2006. There is a deadline of two weeks. Kevin is the hero. He is the senior on the audit

Rising Action: Kevin is asked to audit a mortgage-backed bonds held by the audit client. He tries to understand the structure. He calls the bond rating agency. Doesn't get answers. Tries to call the borrowers no answer. Billy his manager wants him to just get the work done. He wants him to stop asking questions.

Climax: Kevin concludes that the bonds are worthless and must write them down. Billy insists that they use the current trading price. Terry the partner on the file must step-in to address this argument.

Falling Action: Partner decides to go with Kevin. Billy quits and goes to work for Lehman Brothers.

Resolution (Denouement): After the financial crisis, Kevin becomes part of the internal education team teaching him about the importance of skepticism. Billy has lost his job and is having a tough time finding a new one.”

The result was an outline with each element a bit more flushed out. Here’s how “Exposition” looked like:

“In 2006, a group of auditors are working on an audit file for a major bank. The team has a tight deadline of two weeks to complete the task. Kevin, the hero of the story, is the senior auditor on the project. He is responsible for overseeing the audit and ensuring that the team meets their deadline.”

Step 2: Expand out the Story

Then I asked it to take the text and “Expand and write in Michael Lewis's style”. Here is what it came up with:

“In the bustling year of 2006, when the financial world was basking in the warm glow of seemingly endless prosperity, a group of auditors found themselves hunkered down in a fluorescent-lit conference room. Their mission: to dissect and analyze an audit file for a major bank, a task with a ticking clock – a mere two weeks to complete the assignment. The pressure was palpable, the atmosphere charged with a blend of urgency and apprehension.

At the helm of this ragtag ensemble stood Kevin, the protagonist of our tale. A senior auditor with a keen eye for detail and an unwavering sense of duty, Kevin bore the weight of overseeing the audit and steering his team towards the fast-approaching deadline. His steady hand and calm demeanor disguised the internal churn of responsibility and the need to maintain professional skepticism amidst a sea of financial jargon and convoluted transactions.

Kevin's days blurred together as he poured over documents, cross-referencing figures and questioning assumptions. He navigated the labyrinthine world of finance with an uncanny intuition, a skill honed by years of experience that allowed him to cut through the fog of complexity to reveal the hidden truths beneath. Surrounded by his team of auditors, a diverse group of individuals each with their own quirks and strengths, Kevin felt the weight of their collective success or failure resting squarely on his shoulders…”

Rinse and repeat for the remainder of the outline and you’ve got a fully fleshed out story.

We all agree that this is not a work of art, but it only took 35 minutes. Now, imagine what I could create if I spent 35 hours or 35 days on it. Imagine further and think what the studios could achieve with an artificial intelligence that was designed specifically to generate movie scripts.

Was AI-Enabled Scriptwriting Truly Unpredictable?

No, it was not. This sci-fi thriller has been in the making for 20 years. As Chris Steiner describes in "Automate This", Hollywood had access to an algorithm in 2004 that could predict the commercial viability of a script. He writes:

"In 2004, a major movie studio allowed an algorithm to scan nine scripts of unreleased movies. The results of the analysis, run by a new company named Epagogix, were then tucked away. The movies all eventually hit the screen, and when the last one was out of theaters, the movie studio went back to take a look at what the algorithm, which was supposed to tell them how much money each film would gross at the box office, had predicted. In three of the nine cases, the algorithm missed by a wide margin. The other six forecasts, however, were bizarrely accurate. On one movie that the studio expected $100 million or more on, the total gross was $40 million, a huge disappointment.1 The algorithm predicted $49 million. Another prediction was within $1.2 million. Epagogix was suddenly on its way to becoming an indispensable tool for studios to use in analyzing scripts—especially ones that may be attached to big budgets—before the movie gets made. Epagogix was conceived and built by two movie lovers, one of them a lawyer and the other from Wall Street’s favorite of disciplines: risk management. The point is to minimize the risk of producing a stinker like Disney did in 2012 when John Carter lost the studio nearly $200 million."

He then goes on to describe the algorithm that analyzes a script based on a comprehensive report created by humans who evaluate various aspects, such as setting, characters, plot, and moral dilemmas. Despite its advanced capabilities, the algorithm still relies on human judgment to evaluate the script's language, story, and characters. But Steiner asks, presciently:

"What if there were an algorithm that didn’t need people for input? What if there were algorithms that could create the script itself?”

The Deeper Truth about Hollywood’s Existing Algorithmic Approach

There is a deeper truth in what Steiner uncovered: audiences are quite predictable. This notion seemingly contradicts the long-held belief that humans demand an infinite canvas when it comes to creativity, a canvas where one could expect unexpected twists, novel ideas, and a constant reinvention of concepts and narratives. Instead, 20-year-old algorithms are capable of predicting what most people like to watch.

Hollywood is clearly gravitating towards sustaining innovation, instead of pursuing truly disruptive narratives. John Wick is on its fourth instalment. And they just released the tenth instalment of Fast and the Furious. Yes, Fast X. By opting to reiterate tried-and-true storylines, Hollywood ensures its economic prosperity. However, the result is a not-so-creative landscape where sequels are incessantly produced, extending familiar plotlines to an almost infinite degree. This approach provides a measure of security, given the inherent uncertainty of box office returns. Yet it also confines the industry within the bounds of proven narratives, potentially at the expense of groundbreaking, original storytelling.

Hollywood studios are not in the business of searching for avant-garde composers, they're searching for chart-topping artists—those who can consistently produce hits that climb the billboards. And as for box-office bombs, they're a crippling blow to the account books—a $200 million heartache they'd rather avoid.

What about the value of creativity?

What about the pursuit of cinematic excellence, the weaving of a narrative so profound that it moves its audience to tears, laughter, or introspection? That's a narrative they've relegated to the bohemian fringe of society, the ones we affectionately refer to as “starving artists”. That creative crowd can dabble in the intricate arts of filmmaking to their hearts' content, while the Hollywood studios stick to what they know best—churning out billion dollar blockbusters, over and over again

This cold commercial reality births a Faustian bargain—one where artistic vision bows before the altar of profitability. It's the invisible contract that underwrites every script, each casting call, and the red-carpet premieres. It's the unspoken rule, the little secret tucked beneath the glitz and glamor of Hollywood. More on this and Optimus Prime in our next post.

Author: Malik Datardina, CPA, CA, CISA. Malik works at Auvenir as a GRC Strategist that is working to transform the engagement experience for accounting firms and their clients. The opinions expressed here do not necessarily represent UWCISA, UW, Auvenir (or its affiliates), CPA Canada or anyone else. This post was written with the assistance of an AI language model. The model provided suggestions and completions to help me write, but the final content and opinions are my own.