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.