OpenAI Will Become a Delaware PBC

⚡️ Headlines

🤖 AI

DeepSeek's New AI Model Confuses Itself with ChatGPT - DeepSeek's latest AI model exhibits behavior suggesting it believes it is ChatGPT, raising questions about AI identity and training data overlap. [TechCrunch].

TSMC Commences Mass Production at First Japanese Chip Plant in Kumamoto - Taiwan Semiconductor Manufacturing Company (TSMC) has started mass production at its inaugural chip manufacturing facility in Kumamoto, Japan, marking a significant expansion in its global operations. [Kyodo News].

2024: The Year AI Tools Became Integral to Daily Life - In 2024, artificial intelligence transitioned from experimental models to practical applications, embedding tools like ChatGPT into everyday technology services and enhancing productivity across various industries. [Associated Press].

🦾 Emerging Tech

Justin Sun Aspires to Be the 'Elon Musk of Crypto' - Cryptocurrency entrepreneur Justin Sun expresses ambitions to emulate Elon Musk's success within the crypto industry, aiming to drive innovation and mainstream adoption. [The Wall Street Journal].

Solar-Powered Aircraft Research Advances - Researchers are making significant progress in developing solar-powered aircraft, which could revolutionize aviation by providing sustainable and long-endurance flight capabilities. [The Wall Street Journal].

Restaurants Turn to Robots Like Flippy, Chippy, and Autocado - Eateries such as Sweetgreen and Chipotle are experimenting with robotic automation, deploying robots named Flippy, Chippy, and Autocado to enhance efficiency and reduce labor costs. [The Wall Street Journal].

🤳 Social Media

In 2024, Fandom Conquered the World - The influence of fan communities surged globally in 2024, impacting politics, culture, and social movements, with social media amplifying their reach and effect. [Wired].

The Year Democrats Lost the Internet - In 2024, Democrats faced challenges in digital engagement, losing ground to the right's alternative media ecosystem, prompting calls for a revamped online strategy. [Wired].

Meta Experiments with Digital Avatar Experiences - Meta is testing 'Avatar Quests' as part of its efforts to build immersive digital experiences, aiming to integrate avatars more deeply into user interactions. [Social Media Today].

🔬 Research

AI-Powered Avatars Can Gesture Naturally as They Speak - New AI technology enables digital avatars to use natural gestures during speech, enhancing virtual interactions by making them more lifelike and engaging. [New Scientist].

⚖ Legal

Non-Profit Group Encode Unites with Elon Musk Against OpenAI's For-Profit Transition - The non-profit organization Encode has joined forces with Elon Musk to oppose OpenAI's shift towards a for-profit model, citing concerns over the company's original mission. [The Tech Portal].

Crypto Founder Do Kwon to Be Extradited to U.S. - Do Kwon, the founder of Terraform Labs, is set to be extradited to the United States to face charges related to the collapse of his cryptocurrency ventures. [The Information].

🎱 Random

Cancer Lab to Receive Over $1 Million in Donations After Charity Memecoin MIRA Soars - A cancer research laboratory is slated to receive over $1 million in donations following the unexpected surge in value of the charity-focused memecoin MIRA. [The Block].

New Wearable Devices Target the Brain to Bring Better Sleep - Innovative wearable devices are being developed to improve sleep quality by directly influencing brain activity, offering potential solutions for sleep disorders. [The Wall Street Journal].

🔌 Plug-Into-This

OpenAI's for-profit plan includes a public benefit corporation

OpenAI plans to convert its for-profit arm into a Delaware Public Benefit Corporation (PBC) by 2025, claiming the change will align societal good with the financial demands of advancing AI. However, this restructuring raises questions about how effectively the organization can prioritize public benefit while pursuing aggressive growth and capital.

• Profit vs. Purpose: While OpenAI frames the move as a way to balance societal and shareholder interests, critics argue that PBCs often struggle to deliver on their stated public benefit missions once profit pressures dominate, given the lack of hard rules surrounding their operation.

• Nonprofit Disempowerment: The nonprofit division, previously central to OpenAI’s governance, will no longer oversee the for-profit entity. This raises doubts about whether public interest objectives will remain a priority as commercial incentives take precedence.

• Investor Appeal Over Ethics: By removing profit caps and offering traditional equity, OpenAI's restructuring appears geared more toward appeasing large investors than ensuring public accountability, potentially sidelining ethical concerns.

• Industry Competition Pressure: The decision may be driven by the need to keep up with rivals like Anthropic and xAI, which have adopted similar structures. Critics argue this competitive dynamic could further dilute OpenAI's original altruistic goals.

• Ambiguity in Accountability: The lack of clear mechanisms to ensure OpenAI’s public benefit commitments in the new structure leaves room for skepticism, particularly as legal challenges loom from key industry stakeholders.

🤞 OpenAI’s shift to a PBC might look like an ethical balancing act, but skeptics warn it could devolve into a PR exercise — PBC’s are often more of a promise than an enforceable commitment to a certain set of norms.

Trump asks Supreme Court to delay TikTok ban until after inauguration

President-elect Donald Trump has asked the Supreme Court to delay a law banning TikTok, set to take effect on January 19, 2025. He argues his administration should address national security concerns through negotiation rather than a ban.

• The Law: Signed by President Biden, the law requires ByteDance to divest TikTok’s U.S. operations by January 19, 2025, or face a ban over security concerns.

• Free Speech Issues: TikTok claims the ban violates the First Amendment rights of its 170 million U.S. users.

• Trump’s Reversal: Trump now seeks a compromise to keep TikTok operational, despite previously pursuing a ban in his first term.

• Supreme Court Review: The Court will hear arguments on the law’s constitutionality on January 10, 2025.

• Broader Impact: A ban would disrupt millions of users, content creators, and businesses dependent on the platform.

🧑‍⚖️ The TikTok case will be widely watched as a precedent for how we choose to navigate the balance between preserving the first amendment within the context of modern social discourse, which is taking place on social media apps that operate differently than the newspapers of old in meaningful ways.

A Marketplace to Solve AI Copyright Woes?

Back in June, Trip Adler, Scribd co-founder, launched "Created by Humans," a platform aiming to resolve AI copyright disputes by facilitating licensing agreements between content creators and AI companies. The Information digs into the concept with publishers vs. AI still heavy on the mind late in 2024.

• Foundation Concept: Adler proposes a "fourth law of robotics," stating AI must compensate for using human-created content, challenging claims that AI training falls under fair use.

• Market Focus: The platform initially targets book copyright holders, offering a streamlined process for licensing deals, with plans to expand to other media like video and audio.

• Industry Tensions: Copyright lawsuits against AI firms, including high-profile cases by The New York Times and Getty Images, underline the platform's relevance amid growing legal battles.

• Economic Parallels: Adler compares his model to Spotify, aiming to legitimize content usage in AI and mitigate unauthorized exploitation.

• Investor Appeal: High-profile backers like Walter Isaacson support the venture, though its success hinges on scaling beyond the limited revenue potential of book publishing.

🧍‍♂️ By drawing lessons from industries like music, Created by Humans seeks to establish a fairer framework for AI-driven innovation, but its success will depend on bridging the wide gap between creators’ rights and the massive demands of AI training datasets.

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