OpenAI responds to US lawmakers’ concerns

OpenAI has assured US lawmakers it is committed to safely deploying its AI tools. The ChatGPT’s owner decided to address US officials after concerns were raised by five senators, including Senator Brian Schatz of Hawaii, regarding the company’s safety practices. In response, OpenAI’s Chief Strategy Officer, Jason Kwon, emphasised the company’s mission to ensure AI benefits all of humanity and highlighted the rigorous safety protocols they implement at every stage of their process.

Over multiple years, OpenAI pledged to allocate 20% of its computing resources to safety-related research. The company also stated that it would no longer enforce non-disparagement agreements for current and former employees, addressing concerns about previously restrictive policies. On social media, OpenAI’s CEO, Sam Altman, shared that the company is collaborating with the US AI Safety Institute to provide early access to their next foundation model to advance AI evaluation science.

Kwon mentioned the recent establishment of a safety and security committee, which is currently reviewing OpenAI’s processes and policies. The review is part of a broader effort to address the controversies OpenAI has faced regarding its commitment to safety and the ability of employees to voice their concerns.

Recent resignations from key members of OpenAI’s safety teams, including co-founders Ilya Sutskever and Jan Leike, have highlighted internal concerns. Leike, in particular, has publicly criticised the company for prioritising product development over safety, underscoring the ongoing debate within the organisation about its approach to balancing innovation with security.

UAE cancels G42’s key meeting with US congress staffers over AI concerns

The United Arab Emirates recently cancelled meetings between US Congressional staffers and the Emirati AI firm G42 following US lawmakers’ concerns about the potential transfer of US AI technology to China. The intervention was personally handled by the UAE Ambassador to the US, who stopped the meetings involving the House Select Committee on China.

Concerns have been heightened by a $1.5 billion investment from Microsoft into G42, raising fears that sensitive technology could be diverted to China, given G42’s historical connections. The refusal to meet has led to increased scrutiny and expected oversight from Congress regarding the G42-Microsoft deal.

Why does this matter?

The cancelled meetings suggest diplomatic tension as US lawmakers, particularly those wary of China, examine the implications of the AI technology transfer to the Middle East. The US State Department has not commented, while a G42 spokesperson directed questions to the Emirati government. The UAE embassy’s spokesperson cited a miscommunication around the visit since the embassy officials were only made aware of the staff delegation shortly before it was about to arrive.

The staffers’ visit was intended to discuss the transfer of advanced chips from companies like Nvidia to the UAE and Saudi Arabia and the broader US-China tech competition. Amidst these concerns, the Biden administration has defended the G42-Microsoft deal, noting that it led to G42 cutting ties with China’s Huawei.

Trump promotes US crypto leadership

Speaking at the Bitcoin 2024 conference, Donald Trump emphasised the importance of the US leading in cryptocurrency, warning that failure to do so would allow China to dominate. He highlighted his plan to create a national ‘stockpile’ of bitcoin and establish a crypto advisory council if elected. Despite previously criticising cryptocurrency, Trump now promotes expanding US bitcoin mining.

Trump’s stance contrasts with that of Democrats, who he claims seek stricter regulation of the crypto sector. He criticised current regulatory actions and suggested that a strategic bitcoin reserve would legitimise digital currencies. The response from the crypto community has been mixed, with some seeing his proposals as a positive step.

Trump also reiterated his intent to commute Ross Ulbricht’s life sentence, creator of the Silk Road marketplace, sparking applause at the event. Meanwhile, some Democratic lawmakers are urging their party to adopt a more progressive approach to digital assets, recognising the growing influence of crypto enthusiasts in politics.

Why does this matter?

The change in Trump’s stance comes as global concerns about cryptocurrencies’ potential risks persist, including their impact on financial systems and susceptibility to crime. Despite these challenges, Trump’s advocacy for cryptocurrency reflects its emerging role in political discourse.

US, EU, UK pledge to protect generative AI market fairness

Top competition authorities from the EU, UK, and US have issued a joint statement emphasising the importance of fair, open, and competitive markets in developing and deploying generative AI. Leaders from these regions, including Margrethe Vestager of the European Commission, Sarah Cardell of the UK Competition and Markets Authority, Jonathan Kanter of the US Department of Justice, and Lina M. Khan of the US Federal Trade Commission, highlighted their commitment to ensuring effective competition and protecting consumers and businesses from potential market abuses.

The officials recognise the transformational potential of AI technologies but stress the need to safeguard against risks that could undermine fair competition. These risks include the concentration of control over essential AI development inputs, such as specialised chips and vast amounts of data, and the possibility of large firms using their existing market power to entrench or extend their dominance in AI-related markets. The statement also warns against partnerships and investments that could stifle competition by allowing major firms to co-opt competitive threats.

The joint statement outlines several principles for protecting competition within the AI ecosystem, including fair dealing, interoperability, and maintaining choices for consumers and businesses. The authorities are particularly vigilant about the potential for AI to facilitate anti-competitive behaviours, such as price fixing or unfair exclusion. Additionally, they underscore the importance of consumer protection, ensuring that AI applications do not compromise privacy, security, or autonomy through deceptive or unfair practices.

Global IT outage prompts US congressional scrutiny, CrowdStrike CEO called to testify

A congressional committee requested the CEO of the security company CrowdStrike, responsible for Friday’s widespread computer outage, to testify, intensifying legislative examination of the event. The House Homeland Security Committee’s Republican leaders have requested that CrowdStrike CEO George Kurtz testify on Capitol Hill by Wednesday to explain the causes of the outages and the mitigation measures being implemented.

Kurtz previously confirmed that a defective content update for Windows users caused the outages, impacting businesses and government organisations globally. Microsoft estimates that 8.5 million Windows devices were affected. Microsoft spokeswoman Kate Frischmann stated that the outages’ impact was due to CrowdStrike’s reach, not Microsoft’s. Security companies often have significant access within Windows to block attacks effectively, but this can also lead to negative escalation of issues when errors occur. Microsoft also highlighted how it must grant these companies such access due to a 2009 agreement with European antitrust authorities whereby Microsoft has to offer security companies the same powers it does to its own security products.

Why does it matter?

The global IT outage underscores the significant reliance on a limited number of software services, raising national security concerns and the lawmakers underscore the importance of learning from this event to safeguard critical infrastructure. CrowdStrike’s role in identifying malicious activities potentially also highlights the risk of international adversaries exploiting such vulnerabilities. As noted by FTC Chair Lina Khan, the incident has brought attention to the dependence on Microsoft products and the inherent fragility of concentrated systems.

US Department of Commerce reports drop in illicit chip movements to Russia

The movement of illicit semiconductor chips to Russia has seen a notable decrease, according to the US Department of Commerce, driven by intensified efforts from Western nations to curb the flow of technology that could support Moscow’s military capabilities. However, China and Hong Kong continue to serve as significant transhipment hubs, enabling the ongoing, albeit reduced, supply of these critical components.

Western governments have ramped up measures to control the export of semiconductor chips and other sensitive technologies to Russia. These actions are part of broader sanctions aimed at restricting Russia’s access to advanced technology that could be used in military applications. Enhanced scrutiny and stricter enforcement of export controls have been pivotal in reducing the volume of chips reaching Russia.

According to the Semiconductor Industry Association (SIA), the volume of semiconductor chips illicitly reaching Russia has fallen by approximately 20% over the past six months. Despite the slowdown, China and Hong Kong remain key transhipment hubs for semiconductor chips destined for Russia. Playing a crucial role in the supply chain, they often serve as intermediary points where chips are re-exported to avoid detection.

China and Hong Kong are employing sophisticated methods to circumvent sanctions and export controls, including re-routing shipments, re-labelling products, using shell companies, misdeclaring goods, and complex supply chains.

Why does this matter?

Industry experts highlight that while the reduction in chip flows is a positive development, the continued role of China and Hong Kong as transhipment hubs poses ongoing challenges. The complex nature of global supply chains and the high demand for semiconductors make it challenging to eliminate illicit flows entirely.

Nvidia develops China-specific AI chips amid tightening US export controls

According to sources, Nvidia is developing a version of its flagship AI chips for the Chinese market to comply with US export controls. The new chip, part of the ‘Blackwell’ series unveiled in March, is expected to be produced later this year. The ‘B200’ model in this series significantly outperforms its predecessor in tasks like chatbot responses. Nvidia is collaborating with its major Chinese distributor, Inspur, to launch this chip, tentatively named the ‘B20.’

In response to tighter US export controls introduced in 2023 to prevent advancements in Chinese supercomputing, Nvidia has created three chips specifically for China. Despite initial setbacks with the H20 chip, sales have surged, with projections of over 1 million units sold in China this year, amounting to over $12 billion. These developments highlight Nvidia’s strategic efforts to maintain its market presence amidst growing competition from Chinese firms like Huawei.

As the US continues to enforce and potentially expand semiconductor-related export restrictions, Nvidia’s actions reflect the broader impact on the global chip industry. The Biden administration’s plans to implement stricter controls on AI technology and efforts to influence policies in other major tech-producing countries underscore the ongoing geopolitical tensions in the semiconductor sector.

Google and NBC Universal revamp Olympic coverage with AI

In a pioneering move, a technology company, Google, contracts with a broadcasting company to cover the Olympic and the Paralympic Games. NBC Universal, the official broadcast agency of the Olympic Games in the US, collaborates with the tech giant and Sports Committees to attract younger audiences and those who have grown accustomed to viewing short clips online.

How it is intended to work is sports commentators will use Google’s Gemini AI to narrate competitions, generate recaps, as an assistant to anchors, answer questions posed online and equip them with the content of informed research, and even entertain audiences. 

Currently, Google’s AI overviews are used to provide synopses to queries posed in Google searches. These give ready-made short responses to questions posed by users without directing them to third-party websites via links.

USA considers stricter trade rules for China chips

The USA is considering stricter trade regulations amidst its efforts to restrict China’s access to advanced semiconductor technology, according to a report by Bloomberg News.

In response to resistance, US officials have notified allies about potential stringent trade restrictions targeting companies that facilitate China’s technological advancements, such as Tokyo Electron and ASML Holding NV.

One of the measures under review is the Foreign Direct Product Rule (FDPR), introduced in 1959 to oversee the trade of US technologies. This provision empowers the US government to block the sale of products made using American technology, even if they are manufactured abroad.

Sources cited by Bloomberg report that US officials are in discussions with counterparts in Tokyo and The Hague, proposing this as a probable course of action if allied nations do not strengthen their own measures against China.

ASML declined to comment on these discussions, while Tokyo Electron stated it cannot comment on geopolitical matters. Requests for comment from Tokyo Electron, ASML Holding, and the US Department of Commerce were not immediately answered.

US senators introduce COPIED Act to combat intellectual property theft in creative industry

The Content Origin Protection and Integrity from Edited and Deepfaked Media Bill, also known as the COPIED Act, was introduced on 11 July 2024 by US lawmakers, Senators Marsha Blackburn, Maria Cantrell and Martin Heinrich. The bill is expected to safeguard the intellectual property of creatives, particularly journalists, publishers, broadcasters and artists.

In recent times, the work and images of creatives have been used or modified without consent, at times to generate income. The push for legislation in the area was intensified in January after explicit AI-generated images of the US musician Taylor Swift surfaced on X

According to the bill, images, videos, audio clips and texts are considered deepfakes if they contain ‘synthetic or synthetically modified content that appears authentic to a reasonable person and creates a false understanding or impression’. If moved into legislation, the bill restricts online platforms where US-based customers frequent, and annual revenue of at least $50 million is generated or where 25 million active users are registered for three consecutive months.

Under the bill, companies that deploy or develop AI models must install a feature allowing users to tag such images with contextual or content provenance information, such as their source and history, in a machine-readable format. After that, it would be illegal to remove such tags for any other reason than research, use these images to train subsequent AI models or generate content. Victims will then have the right to sue offenders. 

The COPIED Act is backed by several artist-affiliated groups, including SAG-AFTRA, the National Music Publishers’ Association, the Songwriters Guild of America (SGA), the National Association of Broadcasters as well as The US National Institute of Standards and Technology (NIST), the US Patent and Trademark Office (USPTO) and the US Copyright Office. The bill also has received bipartisan support.