🏆 Altman back? (+ 3 new additions)

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Monday’s top story: Sam Altman is back on the OpenAI board, alongside three new female members.

🌤️ This Morning on AI Tool Report

1. 🏆 Altman is back on the board (with 3 new additions)

2. ⚖️ NVIDIA sued for AI copyright infringement

3. 🛟 Microsoft boosts safety after internal complaint

4. 🔍 OpenAI’s Sora scrutinized by EU

5. ⏬ NVIDIA’s shares plummet amid AI chip frenzy

Read Time: 5 minutes

FINANCE

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INTERNAL POLITICS

🏆 Altman is back on the board (with 3 new additions) 

Our Report: Following an outside investigation into why OpenAI abruptly fired CEO Sam Altman—and promptly rehired him—in November, OpenAI has reinstated Altman onto the Board of Directors and added three new female members.

🔑 Key Points:

• The investigation concluded that Altman’s firing was caused by “a breakdown in the relationship” between Altman and the prior board, but Altmans “conduct didn’t mandate removal.”

• The three new female board members are Sue Desmond-Hellmann (ex-CEO of the Bill Gates Foundation), Nicole Seligman (ex-Sony president), and Fidji Simo (Instacart CEO).

• This brings the board to eight, with all members of the transitionary board (which was formed after Altman’s firing) remaining, and Bret Taylor continuing as board chair.

🤨 Why you should care: OpenAI’s new board shows investors that it’s moving past internal conflicts and—following criticism of its all-male board—is now including broader, diverse perspectives to try and mitigate AI bias.

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LEGAL

⚖️ NVIDIA sued for AI copyright infringement

• A trio of authors—Brian Keene, Abdi Nazemian, and Steward O’Nan—are suing NVIDIA for using their copyrighted books to train its generative AI model, NeMo.

• They allege that their work was included in a dataset of 196,640 books before it was removed for infringement (which they’re seeing as an admission of guilt from NVIDIA).

• This follows similar copyright infringement lawsuits against OpenAI, Microsoft, and Meta for using copy-protected work to train their large language models (LLMs).

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AI SAFETY

🛟 Microsoft boosts safety after internal complaint 

• Following the revelation (made by engineer, Shane Jones) that Microsoft's image-generation tool (Copilot Designer) was unsafe, Microsoft has changed its AI guardrails.

• They have blocked users from using terms found to be harmful (eg. “pro-choice”) and are issuing policy violation warnings, leading to account suspension if ignored. 

• They have also stated that they’re “making adjustments, and putting additional controls in place to further strengthen our safety filters and mitigate misuse.”

DATA PRIVACY

🔍 OpenAI’s Sora scrutinized by EU

• OpenAI’s text-to-video model—Sora—is under scrutiny from Italy’s data protection watchdog (Garante) over concerns about how it processes users' personal data.

• Garante has given OpenAI 20 days to establish how Sora informs its users about how it uses their data and establish if it’s in line with EU data privacy regulations.

• This is the second time OpenAI has been scrutinized by the Italian regulator, which is currently investigating potential data violations made by ChatGPT.

SHARE VALUE

⏬ NVIDIA’s shares plummet amid AI chip frenzy 

• NVIDIA’s stock price fell by over 5% on Friday, which is the biggest decline it’s seen since December 2022 (15 months ago), when they dropped by 7.1%.

• The AI chipmaker shares—which have near-quadrupled over the last year—reached an all-time high, right before they plummeted, slashing $128B from its market cap.

• It’s believed that NVIDIAs record-breaking run is slowing due to increased competition from other AI chipmakers, more cautious enterprise spending, and its newest copyright lawsuit. 

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🥓 Text-to-video model Pika releases sound effects 

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