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AI

Artificial intelligence is more a part of our lives than ever before. While some might call it hype and compare it to NFTs or 3D TVs, generative AI is causing a sea change in nearly every part of the technology industry. OpenAI’s ChatGPT is still the best-known AI chatbot around, but with Google pushing Gemini, Microsoft building Copilot, and Apple adding its Intelligence to Siri, AI is probably going to be in the spotlight for a very long time. At The Verge, we’re exploring what might be possible with AI — and a lot of the bad stuff AI does, too.

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Elizabeth Lopatto
Elizabeth Lopatto
Musk cross. I guess we are now going to have a fight about due diligence.

“We did not talk to Elon Musk during out due diligence process,” Wetter notes. He’s not a party to OpenAI’s agreements with Microsoft. A lot of the direct was “Are there any agreements with Elon Musk here? Are there any there?”

Elizabeth Lopatto
Elizabeth Lopatto
“Our due diligence found no conditions related to Elon Musk,” Wetter says.

We have just gone through the terms of a very boring document. I will spare you. That’s the top line.

Elizabeth Lopatto
Elizabeth Lopatto
Mike Wetter for Microsoft is taking the stand now.

He lead corporate development at Microsoft, where he’s worked for almost 20 years. We saw this deposition earlier as part of Musk’s case. He did a bunch of the work on the 2021 and 2023 OpenAI deals. I believe he is here to talk about Microsoft’s due diligence and also to put the deal in context — “we’ve done over 100 transactions including acquisitions and investments,” in aggregate value of $100 billion.

Elizabeth Lopatto
Elizabeth Lopatto
Scott, who is wearing sneakers and a black crew neck under his blazer, seems quite pleasant on cross.

He also doesn’t remember a bunch of things Musk’s lawyer is asking about. I fully believe him on this — feels like Scott’s only real interest is the tech. He was so happy talking about Azure and he is very lost talking about partnership agreements.

Elizabeth Lopatto
Elizabeth Lopatto
We are now getting cross-examination from Musk’s lawyer.

She seems confused by a CTO not knowing what revenue had been generated. Scott noted he was not the chief revenue officer. He seemed amused.

Hayden Field
Hayden Field
Anthropic is launching Claude for Small Business.

It’s a package of “connectors,” installed via a toggle switch, that allows Claude to work inside tools like Intuit Quickbooks, PayPal, Docusign, HugSpot, Google Workspace, and Microsoft 365. “It can plan payroll, close the month, run a sales campaign, chase invoices, and more,” per Anthropic’s blog post.

Elizabeth Lopatto
Elizabeth Lopatto
Microsoft’s CTO Kevin Scott is on the stand.

He has testified that the company liked the idea of partnering with OpenAI in part because it would show how to build out Azure for AI frontier research. It’s pleasantly boring.

Elizabeth Lopatto
Elizabeth Lopatto
In his testimony, Musk said he never called anyone a jackass.

He said he sometimes used strong language at work, but might have said something like, “Don’t be a jackass.” So in addition to being hilarious, the trophy also makes him look like a liar.

Elizabeth Lopatto
Elizabeth Lopatto
Incredible evidence dispute this morning.

There is a trophy that OpenAI has brought in, that’s half of a donkey — the back half — and says, “Never stop being a jackass.” It’s a commemoration OpenAI employees bought for another employee that Musk called a jackass on the way out on his last day. Musk’s team does not want the trophy in evidence.

Lauren Feiner
Lauren Feiner
OpenAI endorses the Kids Online Safety Act.

It joins a handful of other tech companies like Snap and Microsoft in supporting the bill, while major tech groups maintain opposition. The announcement comes as a key Senate committee prepares to move forward on its version of KOSA, after a House committee passed a largely overhauled version.

Alexa is moving into Amazon․comAlexa is moving into Amazon․com
Jennifer Pattison Tuohy
Data centers are coming for rural America

And the jobs they promise don’t really exist.

Abigail Bassett
TC Sottek
TC Sottek
Princeton’s code of honor is AI’s latest victim.

As originally reported by The Daily Princetonian and The Atlantic, Princeton University just decided to end a 133-year tradition of professors leaving the room when students are taking exams.

The dean of the faculty claimed in the proposal to amend the rules that both students and professors had “the perception that cheating on in-class exams has become widespread”, thanks in part to “the advent of generative artificial intelligence products.” At least AI has reinvigorated one job: student chaperone.

Sam Altman was winning on the stand, but it might not be enough

Elon Musk may have done more long-term reputational damage to the OpenAI CEO.

Elizabeth Lopatto
Jay Peters
Jay Peters
Polling firm Gallup is starting to look into “the potential of simulated responses.”

It’s partnering with an AI company called Simile and is “independently validating” the company’s method. “Our goal is to learn whether AI systems and emerging methods can help deepen, not replace, our understanding of how humans think and behave,” according to Gallup. Gallup also notes that its goal isn’t to use the methodology to substitute “for work that requires the rigor of probability-based sampling.”

Emma Roth
Emma Roth
Claude can now plug into a bunch of legal tools.

As the AI adoption in the legal field ramps up, Anthropic has announced that its AI chatbot can now connect to many of the apps used by lawyers, including DocuSign, Box, Thomson Reuters, Harvey, and more. “Claude reviews contracts, surfaces case law, and drafts across the tools your team already uses,” according to Anthropic.

Hayden Field
Hayden Field
About 200 people work on safety at OpenAI.

Kolter laid out OpenAI’s different safety groups: the safety systems team, which works on guardrails and evaluations; the preparedness team, which deals with OpenAI’s preparedness framework; the alignment team, which helps train models on ways that “align with human values”; the model policy team, which develops the model spec; and other teams focusing on investigations. When speaking about the controversial dissolution of OpenAI’s superalignment team and AGI readiness team, he said some of that research is being done by other teams.

Hayden Field
Hayden Field
The chair of OpenAI’s safety and security committee said they’ve formally delayed its model releases.

Dr. Jeremy “Zico” Kolter said that so far, there have been two times when the committee “formally requested a delay of models.”

Elizabeth Lopatto
Elizabeth Lopatto
Irritatingly, no one has asked him why he’s called “Zico.”

Anyway, he’s a member of the nonprofit board of the OpenAI foundation, but not the for-profit. He’s a safety expert.

Elizabeth Lopatto
Elizabeth Lopatto
Altman steps down. We are now hearing from Jeremy “Zico” Kolter.

He’s a Carnegie Mellon prof who focuses on safety and security.

Elizabeth Lopatto
Elizabeth Lopatto
We’re on redirect with Savitt and we’re looking at the “bait and switch” texts.

Altman said — and evidence in the direct showed — that Altman had made sure Musk knew about Microsoft. “I would often have to remind Musk of things, but this one I assumed we had talked about enough times that he would remember,” Altman says. Of Musk’s attitude toward OpenAI, he says, “we were kind of left for dead.”

Elizabeth Lopatto
Elizabeth Lopatto
Microsoft establishes that OpenAI has other investors...

And that Musk hasn’t sued any of them. Softbank’s investment is bigger — so is Nvidia’s and so is Amazon’s. That’s all from Microsoft.

Elizabeth Lopatto
Elizabeth Lopatto
We see the Musk “bait and switch” texts again.

In response, Altman texted, “I agree this feels bad — we offered you equity when we established the cap profit, which you didn’t want at the time but we are still very happy to do any time you like.” Molo tries to ask if this is a bribe — if Altman is trying to say that if Musk lets him get away with stealing from a charity, he’ll split the loot. Savitt objects, YGR sustains.

Elizabeth Lopatto
Elizabeth Lopatto
What if we had a drinking game for this trial?

Granted we’d all be dead as a result because who can keep up with this but... Drink every time:

  • Someone says “Dota” or “Dota 2”
  • “I don’t recall”
  • “I disagree with that characterization”
  • “Stole a charity”
  • “Was Microsoft there?”
  • YGR snaps at someone
  • YGR says something nice to the jury
Elizabeth Lopatto
Elizabeth Lopatto
Musk says, “This is a bait and switch” in a October 2022 text chain.

Molo says, isn’t he saying you stole a charity? Altman looks confused. “No?”

Elizabeth Lopatto
Elizabeth Lopatto
Molo is not doing especially impressive lawyering here.

It’s funny that he’s on the team alleging money overrode ethics, because, well, I guess it takes one to know one? Throughout the case, we’ve seen a number of own goals from the Musk team. This morning, when the Musk team was requesting to ask questions about safety concerns with AI, YGR snapped, “What else do you think you want to do? Because you do not want to be held in contempt I guarantee you.” She’s tough with lawyers as a general rule, but woof.

Hayden Field
Hayden Field
Molo asked Altman if he’d ever fire himself as CEO of the OpenAI for-profit.

“I have no current plans to do so,” Altman replied, adding, “I’ve never thought about it before.”

Elizabeth Lopatto
Elizabeth Lopatto
“The blip” again.

Y’all I am so sick of this. We are literally litigating a week in 2023.

Elizabeth Lopatto
Elizabeth Lopatto
Well, I do love a long inquiry into the linear nature of time.

Molo is asking about a series of terms on the Microsoft deal that were developed post 2020. None of them are on the 2018 term sheet because they hadn’t been negotiated yet. Fascinating stuff from Molo — is this really the best use of his time?

Elizabeth Lopatto
Elizabeth Lopatto
The difference between Musk and Altman on cross is really stark.

While Musk was ready to get into a fight over anything and everything, Altman has rather mildly answered every insulting question Molo has asked him. Molo has just accused Altman of lying on his direct examination about Musk trying to tuck OpenAI into Tesla. In his deposition, Altman says he’s not sure one way or the other about that and then asks to scroll to the top of the deposition for context. Molo says no. A juror smiles. I expect I know what we’re going to see on the redirect.

Elizabeth Lopatto
Elizabeth Lopatto
Ronan Farrow’s article is brought up.

OpenAI’s lawyers have objected to the question, which is about the New Yorker article which “basically calls you dishonest,” Molo says. YGR would like us to move on from all the people who have called Altman a liar. It’s been more than 10 minutes of this. I think everyone got the point.

Elizabeth Lopatto
Elizabeth Lopatto
This cross is spicy!

Sam Altman is responding to being repeatedly called a liar, both in this trial and elsewhere. We’re just hearing a list of people who have called Altman a liar or a schemer, including the Anthropic cofounders, Dario and Daniela Amodei. Altman just seems confused.

Elizabeth Lopatto
Elizabeth Lopatto
Mr. Molo is going directly in at Altman: “Do you always tell the truth?”

“I believe I am an honest and trustworthy businessperson,” Altman says. We are now hearing about Ilya Sutskever’s testimony that he thought Altman was dishonest, and Mira Mirati’s as well. Altman is responding to this with confusion, seems hurt, and is speaking very softly.

Elizabeth Lopatto
Elizabeth Lopatto
“If I knew how difficult and painful this was going to be, I never would have tried,” Altman said.

He also says it’s the most meaningful thing in his life besides his family. It’s “awesome and fulfilling,” Altman said. He also testifies he is still enthusiastic about the nonprofit structure because it’s now one of the largest nonprofits in the world. “Mr Musk did try to kill it, at least twice.” We are now about to witness the cross.

Elizabeth Lopatto
Elizabeth Lopatto
We are now talking about Altman’s investments.

He says he never received any money from OpenAI’s startup fund. “I temporarily held the gp position because as the only person on the executive team without OpenAI equity, if anyone else had that… it would’ve caused adverse tax consequences.” He says he’s recused from any related-party transactions and let the boards of the relevant companies decide what to do. This is followed by some PR talk about the OpenAI foundation’s Alzheimer’s work. Okay.

Elizabeth Lopatto
Elizabeth Lopatto
“I had poured the last years of my life, and I was watching it be destroyed,” Altman said.

He was tempted to go to Microsoft to work on pure research effort, and he felt very angry. “I’m sure I could have made a ton of money and had a much easier life at Microsoft but I cared about the mission and the people,” he said. So he returned. As for the board, he says “I feel badly for the misunderstandings” with the board.

Elizabeth Lopatto
Elizabeth Lopatto
“I was in this like fog of war, I didn’t know what was going on,” Altman says of what happened next.

People started quitting OpenAI. Altman went to Brockman’s house and wanted to figure out a way to stabilize OpenAI. He had calls with board members about coming back to OpenAI. “Although I was still very angry” and thought he’d have to “clean up a mess I didn’t make,” he said he was willing to come back under other conditions.

Elizabeth Lopatto
Elizabeth Lopatto
We are now onto “the Blip.”

All the board would tell him was that he wasn’t consistently candid and they weren’t going to get into why. Altman was completely shocked, he says. He also told them that their plan to announce it via a blog post would throw things into chaos. “If this is the decision, this is a terrible way to execute it,” Altman said he told them. The board told him it was too late to stop it.