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SEC Investigating Whether OpenAI Investors Were Misled
- almog 3y agohttps://archive.ph/2024.02.29-043027/https://www.wsj.com/tech/sec-investigating-whether-openai-investors-were-misled-9d90b411 https://archive.ph/2024.02.29-043027/https://www.wsj.com/tec...
- outside1234 3y agohttps://archive.is/YorQm https://archive.is/YorQm
- dmix 3y agoRelevant bits: > The SEC enforces laws that forbid people from misleading investors, regardless of whether fundraisers seek capital in public or private markets. The SEC often closes investigations without making formal accusations of wrongdoing. > Some of the people familiar with the investigation described it as a predictable response to the former OpenAI board’s claim in its November statement. One of the people said that the SEC hasn’t pointed to any specific statement or communication by Altman that it has deemed misleading. > The SEC’s civil investigation has been percolating in the background as OpenAI officials pitched investors as part of its recently closed tender offer, which valued the AI juggernaut behind viral chatbot ChatGPT at more than $80 billion. > OpenAI is governed by a nonprofit. Investors in its for-profit arm include employees, venture capitalists, and Microsoft MSFT 0.06%increase; green up pointing triangle, which has committed $13 billion to the company in exchange for what is essentially a 49% stake in the earnings of its for-profit arm. > At that time of the leadership turmoil, OpenAI executives started getting questions from regulators and law-enforcement entities such as the Manhattan U.S. Attorney’s Office about the board’s accusation of Altman’s lack of candor, The Wall Street Journal reported in November.
- 55555 3y agogreen up pointing triangle lol
- zarathustreal 3y ago(GP farming internet points with GPT-generated summaries)
- c22 3y agoNot a summary or GPT-generated... That's a quote from the article. WSJ puts ticker data after company references. Green up pointing triangle is the accessible tag for the image and was simply copy and pasted from the source content.
- thomasjudge 3y agoSing it with me, kids, "Everything is Securities Fraud" - OpenAI edition, coming Feb 29 to Matt Levine's Money Stuff near you
- jdgee76 3y agoThere is a better song to teach the kids - dont work for financial engineers. If you have a purely creative, engineering or technical background you will end up under, or dependent on financial engineers soon enough. To get out of that trap, either develop your own business and finance skills. Or work for people who dont have a pure business or finance background. A good mix is best. And you can then live a life where you dont have to pay attention to content creators on wall st and build things you actually care about.
- hef19898 3y agoNot everyone in finance, or running a public company, is a financial engineer skirting or breaking the rules. Agree on developing some financial basics so, this only helps!
- vanattab 3y agoThat's true the big fish are too busy rewriting the rules in their favor.
- jamespo 3y ago"Don't take advice from 1 hour old accounts" is another tune I like
- __loam 3y agoCan't wait for the Andrew Ross Sorkin interview!
- thomasjudge 3y agoSecond story https://archive.is/igIqF https://archive.is/igIqF "I sometimes write “everything is securities fraud” as a shorthand for a particular weird argument about how modern US legal dynamics transmute every bad action taken by a public company into securities fraud.."
- LudwigNagasena 3y agoA bunch of companies pledged $1bln to a non-profit. A non-profit was turned into a de facto for-profit company. That’s what they should have been investigating since 2019.
- tbone5560 3y agoThe nonprofit structure makes it very tax advantageous. Proceeds from the sale of PPUs are tax free!
- throwaway11460 3y agoHuh? The US doesn't have income tax?
- jbverschoor 3y agoToo busy blocking btc etfs
- bagels 3y agoIs this the answer to the question of the proximate cause of Altman's firing?
- smolder 3y agoI haven't personally seen any credible evidence to explain that, which is a bit spooky.
- __loam 3y agoI think Occam's Razor applies here, which is to say an inexperienced and idealistic board got cold feet and tried to remove Altman on principle. They failed because Altman is not only a political animal, but also one with friends in high places. Can't remove the helmsman at peak hype cycle and expect no consequences.
- lotsofpulp 3y agoAre the OpenAI employees involved in this at all? Perhaps due to wanting a payday, and seeing higher chances of it with Altman?
- theGnuMe 3y agoYeah they threatened to walk.. it was all over twitter.
- baking 3y agoI don't understand why people refuse to see it. They had a nine-member board with three insiders but three independent directors resigned so they were split 3-3. The board was split on choosing new directors so they were at an impasse for months. Then Altman cooked up an excuse to attempt to remove one of the independent directors and lied to other board members about it and that convinced Ilya Sutskever to vote to remove Altman from the board to restore its independence. Firing Altman was just fallout from that. Edit: It occurs to me that Ilya could have resolved the situation by resigning from the board, but I suppose that was a non-obvious solution.
- happytiger 3y agoI can’t stop chuckling at how many people have talked me up about how innovative their structure was. It’s funny how trendy things are even when they make no sense.
- blitzar 3y agoThis old pro, a copywriter, a Greek named Teddy, told me the most important thing in advertising is 'new'. It creates an itch. You simply put your product in there as a kind of calamine lotion.
- ohduran 3y agoDidn't he also told you about nostalgia? ;)
- JumpCrisscross 3y ago> how many people have talked me up about how innovative their structure was If this crap flies I'm going to deploy the first non-Euclidean capital structure.
- bick_nyers 3y agoWhen you do your IPO, make sure to file it as "positive-definite" so your stock price keeps going up!
- happytiger 3y agoI will invest immediately.
- ben_w 3y agoI made the mistake of trying to work out what a non-Euclidean capital structure might mean, and got stuck on thinking "ah, a pyramid scheme".
- 1vuio0pswjnm7 3y agoNo Javascript: https://cc.bingj.com/cache.aspx?d=4416390193669&w=T-7EMYqCcEF_Gr-EmUpavXGlC2Rcqne2 https://cc.bingj.com/cache.aspx?d=4416390193669&w=T-7EMYqCcE...
- tarasglek 3y agoWhat is this site I have not seen it before.
- tech234a 3y agoIt’s just Bing’s cache
- 1vuio0pswjnm7 3y agoMSN, cached by Bing.
- tarasglek 3y agonow aspx makes sense. will try to use this in future, thanks
- AlwaysRock 3y agoIs there a way to run articles through this? I dread WSJ articles because I dont have a way to pass the paywall.
- nickcotter 3y agoAnother report, non-paywalled: https://www.theguardian.com/business/2024/feb/29/us-regulators-investigate-whether-openai-investors-were-misled https://www.theguardian.com/business/2024/feb/29/us-regulato...
- deleted 3y ago[deleted]
- aeurielesn 3y agoI truly wonder whether anyone will ultimately go to prison for all the copyrights infringements surrounding OpenAI. Unless being a CEO in the US gives you a free get-out-of-jail card.
- seanmcdirmid 3y agoCopyright infringement is mostly civil matter in the USA, not a criminal one, there is a very high bar to pass for criminal charges that doesn’t exist for civil ones. Also, I’m not convinced that organizations like the New York Times didn’t accidentally just discover entrapment via prompt injection when making their claims. The courts will sort that out quickly, however.
- DoesntMatter22 3y agoWhat is entrapment via prompt injection?
- seanmcdirmid 3y agoYou give pieces of the article during your chat session giving enough context for the LLM to put it together when you ask for it. The other one is just being confused when Bing, who has some sort of deal with the publishers, includes the article in the prompt when you casually use the system to ask for its first ten lines, and get it. It isn’t baked into the model, the attention aspect is just really leaned into. Mostly it’s just people not understanding how LLMs work, and assuming everything is coming from the model when they don’t realize it’s all coming from information in the prompt, and the model is just really good at getting things from the prompt. Again, courts will sort those claims out quickly.
- __loam 3y agoCopyright infringement.
- gamblor956 3y agoThere's no such thing as "entrapment via prompt injection" since it still requires the LLM to have the underlying article in its training set. And that is precisely the problem: that the underlying article is in the training set and in the body of reproducible output without permission. This requires an act of copying, and was done without permission, so it's a copyright violation unless a fair use exception applies. (Courts haven't yet ruled on that; it's likely that the NYT case is the case that will ultimately lead to a SCOTUS ruling resolving the issue one way or the other.)
- noncoml 3y agoI think it’s clear now that behind all this and past drama of OpenAI is Musk. Mask Off (pun unindented)