"OpenAI is currently being sued for copyright infringement by The New York Times and authors who claim their content was used to train models without consent. It is also being sued for wrongful death by the parents of a 16-year-old who died by suicide after discussing methods with ChatGPT. Two people with knowledge of the matter said OpenAI has considered "self insurance," or putting aside investor funding in order to expand its coverage."
"One of those people said OpenAI had discussed setting up a "captive"-a ringfenced insurance vehicle often used by large companies to manage emerging risks. Big tech companies such as Microsoft, Meta, and Google have used captives to cover Internet-era liabilities such as cyber or social media. Captives can also carry risks, since a substantial claim can deplete an underfunded captive, leaving the parent company vulnerable."
OpenAI faces multiple legal actions, including copyright suits from The New York Times and authors and a wrongful death suit tied to ChatGPT. The company has considered "self insurance" and discussed creating a ringfenced captive insurance vehicle to manage emerging liabilities as it grows. OpenAI has raised nearly $60 billion, with much funding contingent on restructuring, and says it currently has insurance while evaluating structures. Anthropic agreed to pay $1.5 billion to settle a class-action authors' lawsuit and partly used its own funds, warning of potentially business-threatening statutory damages for AI developers.
Read at Ars Technica
Unable to calculate read time
Collection
[
|
...
]