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  • OpenAI Says It Will Stay Under Nonprofit Control

    OpenAI Says It Will Stay Under Nonprofit Control


    Months after publicly stating its intention to shake up its corporate structure, OpenAI has reversed course and decided that its nonprofit arm will keep controlling its for-profit business.

    According to an OpenAI blog post published Monday, the company’s board of directors decided that OpenAI will continue to rely on the oversight and control of its nonprofit division moving forward.

    “OpenAI was founded as a nonprofit, and is today overseen and controlled by that nonprofit,” OpenAI board chairman Bret Taylor wrote in the blog post. “Going forward, it will continue to be overseen and controlled by that nonprofit.”

    The company’s for-profit LLC, which has lived under the nonprofit since 2019 and will continue doing so, will become a public benefit corporation (PBC). A PBC is a for-profit business that must consider the public good in addition to profit in its decisions. The nonprofit division of OpenAI will control and be the biggest shareholder in the PBC.

    “Our mission remains the same,” Taylor noted. OpenAI’s mission is “to ensure that artificial general intelligence benefits all of humanity.”

    Related: Everyone Wants to Buy Google’s Chrome Browser — Including OpenAI, According to a Top ChatGPT Executive

    In December, OpenAI publicly indicated in a blog post that it was thinking about making its for-profit section a PBC, but one that had complete control over OpenAI’s operations and business. The non-profit side would not oversee the for-profit, but would instead be in charge of charitable initiatives.

    Taylor wrote on Monday that OpenAI chose to reverse course and have the nonprofit retain control over the for-profit business after talking to civic leaders and with the offices of the Attorney General of Delaware and the Attorney General of California.

    More than 30 civic leaders, former OpenAI staffers, and Nobel laureates delivered letters to the offices of the attorneys general last month to ask that they stop OpenAI’s effort to break from its non-profit governance.

    OpenAI CEO Sam Altman. Photographer: Nathan Laine/Bloomberg via Getty Images

    OpenAI has recently been embroiled in a legal battle with Elon Musk, who helped co-found the company and left in early 2018 following a failed bid to take it over. Musk has since filed lawsuits against OpenAI and its CEO, Sam Altman, accusing them of breaking OpenAI’s founding agreement and working to maximize profits for Microsoft instead of humanity as a whole. Microsoft has invested close to $14 billion in OpenAI.

    Musk even led an unsolicited offer to buy OpenAI for $97.4 billion in February, which Altman quickly shot down on X. As of press time, Musk had yet to comment.

    Related: OpenAI Is Creating AI to Do ‘All the Things That Software Engineers Hate to Do’

    OpenAI started as a nonprofit in 2015 and transitioned to a “capped profit” company in 2019, meaning that the company’s profits were limited to a certain amount, with excess profits given to the nonprofit parent organization. The for-profit arm raised $1 billion from Microsoft in 2019, alongside a $100 million initial fundraising round.

    In November 2022, OpenAI launched its AI chatbot ChatGPT, which was used by 500 million global weekly users as of March, up from 400 million in February.

    OpenAI closed a $40 billion funding round in March, the biggest private tech deal ever, which valued the company at $300 billion.



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  • Google Plans to Roll Out Gemini A.I. Chatbot to Children Under 13

    Google Plans to Roll Out Gemini A.I. Chatbot to Children Under 13


    Google plans to roll out its Gemini artificial intelligence chatbot next week for children under 13 who have parent-managed Google accounts, as tech companies vie to attract young users with A.I. products.

    “Gemini Apps will soon be available for your child,” the company said in an email this week to the parent of an 8-year-old. “That means your child will be able to use Gemini” to ask questions, get homework help and make up stories.

    The chatbot will be available to children whose parents use Family Link, a Google service that enables families to set up Gmail and opt into services like YouTube for their child. To sign up for a child account, parents provide the tech company with personal data like their child’s name and birth date.

    Gemini has specific guardrails for younger users to hinder the chatbot from producing certain unsafe content, said Karl Ryan, a Google spokesman. When a child with a Family Link account uses Gemini, he added, the company will not use that data to train its A.I.

    Introducing Gemini for children could accelerate the use of chatbots among a vulnerable population as schools, colleges, companies and others grapple with the effects of popular generative A.I. technologies. Trained on huge amounts of data, these systems can produce humanlike text and realistic-looking images and videos.

    Google and other A.I. chatbot developers are locked in a fierce competition to capture young users. President Trump recently urged schools to adopt the tools for teaching and learning. Millions of teenagers are already using chatbots as study aids, writing coaches and virtual companions. Children’s groups warn the chatbots could pose serious risks to child safety. The bots also sometimes make stuff up.

    UNICEF, the United Nation’s children’s agency, and other children’s groups have noted that the A.I. systems could confuse, misinform and manipulate young children who may have difficulty understanding that the chatbots are not human.

    “Generative A.I. has produced dangerous content,” UNICEF’s global research office said in a post on A.I. risks and opportunities for children.

    Google acknowledged some risks in its email to families this week, alerting parents that “Gemini can make mistakes” and suggesting they “help your child think critically” about the chatbot.

    The email also recommended parents teach their child how to fact-check Gemini’s answers. And the company suggested parents remind their child that “Gemini isn’t human” and “not to enter sensitive or personal info in Gemini.”

    Despite the company’s efforts to filter inappropriate material, the email added, children “may encounter content you don’t want them to see.”

    A Google email to parents this week warned about the risks of Gemini for children.

    Over the years, tech giants have developed a variety of products, features and safeguards for teens and children. In 2015, Google introduced YouTube Kids, a stand-alone video app for children that is popular among families with toddlers.

    Other efforts to attract children online have prompted concerns from government officials and children’s advocates. In 2021, Meta halted plans to introduce an Instagram Kids service — a version of its Instagram app intended for those under the age of 13 — after the attorneys general of several dozen states sent a letter to the company saying the firm had “historically failed to protect the welfare of children on its platforms.”

    Some prominent tech companies — including Google, Amazon and Microsoft — have also paid multimillion-dollar fines to settle government complaints that they violated the Children’s Online Privacy Protection Act. That federal law requires online services aimed at children to obtain a parent’s permission before collecting personal information, like a home address or a selfie, from a child under 13.

    Under the Gemini rollout, children with family-managed Google accounts would initially be able to access the chatbot on their own. But the company said it would alert parents and that parents could then manage their child’s chatbot settings, “including turning access off.”

    “Your child will be able to access Gemini Apps soon,” the company’s email to parents said. “We’ll also let you know when your child accesses Gemini for the first time.”

    Mr. Ryan, the Google spokesman, said the approach to providing Gemini for young users complied with the federal children’s online privacy law.



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