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Tuesday’s top story: Two former OpenAI board members have called for the OpenAI CEO, Sam Altman, to go, once again, claiming he has created “a toxic culture of lying” that “bodes ill” for OpenAI.
🌤️ This Morning on AI Tool Report
⚠️ OpenAI crisis: Altman out?
🌟 Musk’s $6B xAI milestone
🧐 OpenAI Fails EU Standards
📢 Apple gets ChatGPT
Read Time: 5 minutes
Tuesday’s newsletter is in partnership with Guidde 🪄
STOCK MARKETS
INTERNAL POLITICS
⚠️ OpenAI crisis: Altman out?
Our Report: Two ex-OpenAI board members, Helen Toner and Tasha McCauley (who were behind the failed ousting of OpenAI CEO, Sam Altman, in November) have, once again, called for Altman to go.
🔑 Key Points:
Toner and McCauley back their original decision to fire Altman in November, claiming his behavior "undermined the board’s key decisions and safety protocols," and is a “recipe for AGI disaster.”
They cited accusations from multiple OpenAI leaders that Altman cultivated “a toxic culture of lying” and engaged in behavior that “can be characterized as psychological abuse.”
Arguing that OpenAI can’t hold itself accountable with Altman at the helm and “developments since his return, bode ill for the OpenAI experiment in self-governance.”
🤔 Why you should care: This character assassination comes after a string of public scandals involving Altman: Key members of OpenAI’s safety team abruptly left because Altman ‘prioritized shiny products’ over safety; Actress Scarlett Johannsen accused Altman of ‘stealing her voice’ for the new GPT-4o, and former employees are reportedly being forced to sign highly-restrictive exit documents or forfeit their hard-earned company equity.
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FUNDING
🌟 Musk’s $6B xAI milestone
Our Report: Following yesterday's news that Elon Musk is planning to build "Gigafactory of Compute" to power its AI chatbot, Grok, Musk has confirmed that his AI start-up company xAI, has raised $6B in series B funding, giving it a post-money valuation of $24B.
🔑 Key Points:
The funding—one of the biggest rounds in the AI industry—was led by some of Musk’s closest friends, including A16z, Sequoia Capital, and co-founder of PayPal, Ken Howery.
Musk plans to use the funds to bring xAI’s “first products to market, build advanced infrastructure, and accelerate the research and development of future technologies.”
He says the start-up has a “mission of understanding the universe, which requires the maximally rigorous pursuit of the truth, without regard to popularity or political correctness.”
🤔 Why you should care: This funding will step up Musk’s campaign to beat AI rivals OpenAI and Google, after he sued OpenAI for betraying its founding agreement to use AI to benefit humanity (instead, preferring to pursue profitable commercial outcomes) and accused Google of including coding bias in its AI models.
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REGULATIONS
🧐 OpenAI Fails EU Standards
Our Report: An EU data protection task force has spent over a year investigating OpenAI's ChatGPT model and has concluded that OpenAI’s efforts to improve the chatbot's output accuracy, fall short of EU data accuracy standards.
🔑 Key Points:
In their report, they conclude that, although OpenAI has taken steps to comply with their transparency principles, they don’t fully address their data accuracy requirements.
The task force was created last year in response to concerns from national regulators (led by the Italian authorities) about ChatGPT and the accuracy of its output.
The report also established that because investigations by several other member states are still ongoing, its findings just represent a consensus among the national authorities.
🤔 Why you should care: Last year, Italy’s privacy watchdog temporarily banned ChatGPT over data privacy issues, and although OpenAI made changes to the information and controls it gives users’ (which saw it reinstated), the Italian investigation into how ChatGPT uses people’s data to train its AI models, continues.
PARTNERSHIPS
📢 Apple gets ChatGPT
Our Report: Following reports that Apple plans to launch an AI-powered emoji-generation tool when it releases its new iOS 18, it’s been confirmed that they have signed an agreement with OpenAI to provide iOS 18 with ChatGPT functionality.
🔑 Key Points:
OpenAI partnership rumors started circulating weeks ago, but sources have confirmed that Apple will officially announce it at its Worldwide Developer Conference (WWDC) in June.
Google is still rumored to be providing iOS 18 with Gemini capabilities (terms are being negotiated) and Apple is also in talks with Anthropic to utilize its chatbot, Claude.
The implementation of these chatbots will power a “smart recap” feature that can summarize texts, web pages, news articles, documents, and notes, helping with notification overwhelm.
🤔 Why you should care: Talks with OpenAI started before the recent scandals (as listed above), which perhaps explains why Apple might want more than one chatbot partnership.
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