Palantir CEO Alex Karp is a little quirky but, on this issue, I tend to agree with him.
According to Karp in the interview below the request by OpenAI and Anthropic AI labs for government regulation is related to a legal issue within their business model. Right now, massive multinational corporations are working with AI groups under contract. As part of those contracts the leaders of the corporations are discovering their individual business plans, what they call their intellectual property (IP) has been uploaded into the dataset of the AI models themselves.
These corporations have spent billions of dollars on their detailed business plans, marketing plans, logistics and revenue systems that are now part of the AI dataset. These CEOs are not happy and talking about lawsuits against the AI developers for stealing their corporate intellectual property. However, at the same time the CEOs are furious at the loss of proprietary information, they are simultaneously bound to the AI developers for forward revenue. This is creating a problem.
Example: By some analyst’s estimations, Amazon’s forward revenue projection is approximately 51% dependent on further technological capability through the use of AI. However, Jeff Bezos likely does not appreciate his business model, which includes a massive dataset that he makes money from, being taken and uploaded to the AI database. Bezos could sue Anthropic for ip theft.
All of the AI labs are exposed to this litigation if it was to unfold. Additionally, all of the investors into the AI frontier labs would be at risk if the AI developer were sued by these corporations. Both the AI developers and their investors would/are demanding protection from these lawsuits.
Here’s where it gets complicated.
If a wave of lawsuits were launched it would seriously hurt the market valuation of the AI developers. However, simultaneously, if the AI developers get government protection (ie Sec.230, federal immunity from lawsuits) that removes entry barriers for startup AI companies, which increases AI competition, which could also reduce the market value of the major AI developers.
Alex Karp with Palantir already has this type of immunity from lawsuits due to the collaborative nature of the national security dynamic that Karp has developed with the U.S. government. However, the AI developers do not have this type of relationship. The AI developers previously said they did not want government interference, but now they want government protection. Privatize the upside (profit), then socialize the risk (losses).
As this dynamic unfolds, you can well imagine all the high-finance influencers who fund various political candidates and Super-PACs are positioning their own interests. An investor in AI would seek the protection of the investment and the elimination of lawsuit risk. Those institutional investors and billionaires would pay political campaigns and special interest advocacy to secure the value of their investment.
The politicians are being purchased by the investors into AI development. The goal is to grant the AI labs immunity from lawsuits.
There are trillions at stake.
If a potential AI threat has to manifest in order to force public support for the liability protection, then so be it.
Perhaps that’s what we are seeing.
Under this unfolding scenario, the tech sector of the stock market looks a little sketchy right now.
Soooo A.I. is just massively ripping off intellectual property and the creators want immunity from theft?
Indemnity will just make that theft more lucrative with minimal downside.
Same as indemnifying big harma for their drugs that got on the vaccination schedule for children.
Money talks.
Wait for the bubble to burst and then get in the market after the huge bear is done killing everything. Eleven minutes but well worth it if you’re an investor.
Alt: https://xcancel.com/gnoble79/status/2100181959095841246
AI will implode. Should we survive , at least we’ll have plenty of power plant capacity.
Every single big company who dove into the AI frenzy is in the red big time…leveraged and borrowed to try and get ahead.
NO bailouts for these clowns. The liability issues alone will cause many to pause.
Of course, they want government protections while keeping all of the info, profits, and facilities.
Reverse socialism, only the elites get the big paydays and protection. Neo-Fascism, the oligarchy and foreign interests tell the gov’t what to do and, mostly (but not completely) excluding PDJT, owns the three branches of gov’t.
Welfare for the elites — Anarcho-tyranny and shithole communities for the serfs.
There are major missing details here .. with this complaint by Palintir CEO.
What were the statement of work tasks as well as terms and condictions in the contract assigned to these “contracted AI Development Labs”??
The AI Labs were not just hired and turned loose on the Companies which contracted them.
There is a Statements of Work.
Non Disclosures.
Terms and Conditions.
“Technical” Interfaces-Interactions to be Defined and Limits to Data Access … based on the statement of work.
Just to name a few key contractual documents that require: business, engineering as well as legal-lawyer inputs. You F-up just these few key items and you are SOL.
Also, what was the competency of the technical staff on Palantir’s side of the arrangements, who were supposed to provide oversight to the work?? Or did palantir not have an oversight staff … pretty stupid move.
This could either be a REAL problem or the people working for Palantir did a piss-poor job representing the end of the contracting … and this CEO is playing like a soccer player doing a 3-roll dive after being touched.
This is going to sound odd … but major companies who have done business with the Department of War as Prime Contractors are best prepared for dealing with AI Sub-Contractors. This is a case where Civilian Industry needs to learn some contracting and contract management practices from an industry they laughed at for years.
“Palantir CEO Alex Karp is a little quirky but…..”
I’m gonna follow Sundance’s lead on this one but….Karp has pivoted. IMHO he remains a wolf in sheep’s clothing.
Trust Trump
Karp is afraid that his software will be obsolete with joint Claude and Amazon AWS Cloud enterprise computing.
If Karp is a little quirky, Sam Altman is off the charts weird, but that’s what we get when we put techie nerds at the head of the class.
My understanding is that chat and the other AI systems built their dataset by uploading copyrighted material and everything else under the sun. It’s ironic that some are now worried about legal exposure to litigation.
Nothing shuts down an operation faster than unauthorized copyright infringements. even China Inc. is cracking down on copyright violators.
There is something missing here concerning who hired the AI Labs to build those databases.
Yes, even Cchina Inc. is concerned with legalities because they are in business for the long term .. not just 1-time smash and grabs.
Copyrighted or not, AI (rules based programming) requires human generated knowledge to feed it. It is highly efficient at then processing massive data sets through a set of rules, also created by humans.
One inevitable consequence that our AI Masters are facing is that AI-digested information is now mingling with original, truly human content. How can AI tell the difference without clueing in us humans to what they are up to?
IMHO, they will be able to contain this for a while by adding exponentially more data centers and CPU power. There are better was to do it but they do not result in central control.
Why America Pours Concrete, China Releases Code
https://datacentermadness.com/china-concrete/
Those “AI SOFTWARE developing humans” are also “supposed” to be limited by the contractual arrangements of the people who hire them … and there also is “supposed to be” competent oversight by the Contracting Company to ensure the contract is followed by the humans.
Reminds me of the good ol’ free music Napster days. Napster is now an AI company.
Napster was shut down for copyright issues as are large numbers of music and entertainment sights today … shutdown even by China Inc.
Yeah we have a team’s plan with Claude and as part of our agreement they are not training their models on our data. If it were to come out that they are the liability would be significantly higher than their current capital expenses
“as part of our agreement they are not training their models on our data”
And you believe them? Does your team have any tools or data access to verify?
I wonder about Anthropic and the Pentagon. How much of our defense systems etc etc has been uploaded to Anthropic and shared with CHYNNNA?
Hoist them on their own petard.
So no one thought of this happening until now?
The AI
developersINVESTORS previously said they did not want government interference, but now they want government protection.Privatize the upside (profit), then socialize the risk (losses).
Looks like someone is tugging at the bottom layer on this house of cards. How much will it stand before it pulls a Solyndra and comes tumbling down?
Money, it’s a gas.
Small and medium size businesses can’t afford it, but the very large businesses would be nuts not to buy their own data centers and then just lease the AI software to use. That way they keep their intellectual property in house.
It’s like me buying Microsoft Office, and running it on my home computer — instead of renting Office “in the cloud” where all my data sits on MS servers.
The public who were forever injured or worse rage against the liability protection given to Big Pharma by Congress for the egregious, irreparable harm they did and will be doing into perpetuity with their mRNA gene therapy.
We didn’t ask for it. We didn’t want it.
And yet it was granted, leaving the public to pay for their own terrible health outcomes from being bullied and mandated (and punished if they didn’t) to get injected with a substance which was known to cause death and endless, life-long debilitating side effects.
Force public support for liability protection for AI?
Memories are fresh from the last time…
Maybe I missing something…
But I bet that Sisyphus has more chance of pushing his boulder to the top of the hill before that happens.
Get stuffed.