FTX’s bankruptcy estate is primed to pay its creditors more than the value of their original claims, according to the Financial Times. Citing two people “with knowledge of the restructuring negotiations,” FT reports that the imploded crypto exchange will likely pay its former customers 120-140% of the value of their holdings on the day FTX […]
The post FTX Creditors Likely To Be Paid up to 140% the Value of Their Original Claims: Report appeared first on The Daily Hodl.
AI developers are taking revenue, data and users away from news publications by building competing products, the News Media Alliance claims.
Artificial intelligence developers heavily rely on illegally scraping copyrighted material from news publications and journalists to train their models, a news industry group has claimed.
On Oct. 30, the News Media Alliance (NMA) published a 77-page white paper and accompanying submission to the United States Copyright Office that claims the data sets that train AI models use significantly more news publisher content compared to other sources.
As a result, the generations from AI “copy and use publisher content in their outputs” which infringes on their copyright and puts news outlets in competition with AI models.
“Many generative AI developers have chosen to scrape publisher content without permission and use it for model training and in real-time to create competing products,” NMA stressed in an Oct. 31 statement.
On Monday, the News/Media Alliance published a White Paper and a technical analysis and submitted comments to the @CopyrightOffice on the use of publisher content to power generative artificial intelligence technologies (#GAI). https://t.co/Zr05e7nZTS
— News/Media Alliance (@newsalliance) October 31, 2023
The group argues while news publishers make investments and take on risks, AI developers are the ones rewarded “in terms of users, data, brand creation, and advertising dollars.”
Reduced revenues, employment opportunities and tarnished relationships with its viewers are other setbacks publishers face, the NMA noted its submission to the Copyright Office.
To combat the issues, the NMA recommended the Copyright Office declare that using a publication’s content to monetize AI systems harms publishers. The group also called for various licensing models and transparency measures to restrict the ingestion of copyrighted materials.
The NMA also recommends the Copyright Office adopt measures to scrap protected content from third-party websites.
The Guardian has accused Microsoft of damaging its journalistic reputation by publishing an AI-generated poll speculating on the cause of a woman’s death next to an article by the news publisher. https://t.co/tOie87HSyA
— News/Media Alliance (@newsalliance) November 1, 2023
The NMA acknowledged the benefits of generative AI and noted that publications and journalists can use AI for proofreading, idea generation and search engine optimization.
OpenAI’s ChatGPT, Google’s Bard and Anthropic’s Claude are three AI chatbots that have seen increased use over the last 12 months. However, the methods to train these AI models have been criticized, with all facing copyright infringement claims in court.
Related: How Google’s AI legal protections can change art and copyright protections
Comedian Sarah Silverman sued OpenAI and Meta in July claiming the two firms used her copyrighted work to train their AI systems without permission.
OpenAI and Google were hit with separate class-action suits over claims they scraped private user information from the internet.
Google has said it will assume legal responsibility if its customers are alleged to have infringed copyright for using its generative AI products on Google Cloud and Workspace.
“If you are challenged on copyright grounds, we will assume responsibility for the potential legal risks involved.
However, Google’s Bard search tool isn't covered by its legal protection promise.
OpenAI and Google did not immediately respond to a request for comment.
Magazine: AI Eye: Real uses for AI in crypto, Google’s GPT-4 rival, AI edge for bad employees
Google has already invested $500 million as part of the deal, while the outstanding $1.5 billion will be paid over time, according to the Wall Street Journal.
Google has doubled down on its artificial intelligence bets by investing another $2 billion into AI startup Anthropic, according to a new report.
Google has already invested $500 million upfront to Anthropic — a rival to ChatGPT creators OpenAI — and will pay off the remaining $1.5 billion over time, according to an Oct. 27 report by the Wall Street Journal (WSJ), which cited people familiar.
The mega-deal adds to Google’s $550 million investment into Anthropic earlier in the year.
Google Cloud also striked a multi-year deal with Anthropic a few months ago worth over $3 billion, WSJ revealed, citing a person familiar with the matter.
The news follows Amazon’s massive $4 billion investment into Anthropic late last month.
$GOOGL Agrees to Invest $2 Billion in AI Startup Anthropic - WSJ
— Kaushik (@BigBullCap) October 27, 2023
- Google, Anthropic Deal Reflects Continued Tech Giant Push Into AI
- Google Investment Follows Amazon's $4 Billion Funding of Anthropic
- Google Previously Invested $550 Million in Anthropic
Anthropic is using much of these investments to train its AI systems, such as AI assistant Claude, in hopes that the firm can achieve the next big breakthrough in the AI industry.
On the other side of the fence is OpenAI, who have received more than $13 billion in funding from Microsoft alone since 2019 and continue to build more advanced versions of its own AI chat bot, ChatGPT. The popular chat bot amassed over 100 million users within the first two months of launching in November, which caught the attention of many venture capital firms around the world looking to invest in the space.
The co-founders of Anthropic, siblings Dario and Daniela Amodei, previously worked at OpenAI but left in 2021 following disputes with OpenAI’s CEO Sam Altman over safety implications associated with building AI systems.
Related: Universal Music Group sues Anthropic AI over copyright infringement
Prior to Google and Amazon, Anthropic was largely bankrolled by former FTX CEO Sam Bankman-Fried, who invested about $530 million in Anthropic's in April 2022 — about seven months before FTX collapsed.
Anthropic’s surge in valuation has been viewed as a positive sign for FTX creditors in hopes that they will be compensated fully from FTX’s bankruptcy case.
As SBF testifies, Google announces it's investing another $2 billion in AI company Anthropic
— Zack Guzmán (@zGuz) October 27, 2023
FTX invested $500M in Anthropic — before Google and before Amazon. The company has now raised $7 billion in the past year alone.
FTX's customer hole closer to being shored up pic.twitter.com/bCDAIlL3nK
Magazine: AI Eye: Real uses for AI in crypto, Google’s GPT-4 rival, AI edge for bad employees
United States prosecutors argue that the potential for FTX investors to be made whole through the high valuation of Anthropic cannot be presented by Sam Bankman-Fried’s legal team.
United States prosecutors have requested the court presiding over Sam Bankman-Fried’s trial to bar his legal team from making any arguments relating to the potential recovery of FTX customer assets that were invested in Anthropic.
Bankman-Fried invested $500 million in the artificial intelligence startup in April 2022. The U.S. government is set to present evidence that the Anthropic investment was made using misappropriated funds from FTX customer deposits.
Anthropic has made headlines in recent weeks as it looks to raise fresh funds from investors, courting the likes of Amazon and Google which could lead to a valuation of $20 to $30 billion.
U.S. prosecutors note that recent reports focused on the potentially high valuation of the company would also increase the value of Bankman-Fried’s investment, which could increase the potential recovery for FTX customers and other creditors in the FTX bankruptcy.
Related: Sam Bankman-Fried ordered ‘special privileges’ for Alameda account on FTX — Gary Wang
According to the letter submitted to Judge Lewis Kaplan, the legal teams representing the U.S. government and Bankman-Fried conferred over various issues that could be elicited during cross-examination of witnesses.
Bankman-Fried’s legal team plans to present evidence regarding the current value of the former FTX CEO’s $500 million investment in Anthropic last year.
The prosecutors believe that this evidence is intended to be used to support the argument that FTX customers and other victims would be fully compensated for their losses, which the court has previously indicated as an “impermissible purpose”:
“Such evidence would therefore be wholly irrelevant, and present a substantial danger of unfair prejudice, confusing the issues, misleading the jury, undue delay, and waste of time.”
The U.S. government maintains that its indictment against Bankman-Fried is centred on allegations of wire fraud using FTX customer deposits to make investments and other expenditures. The prosecutors argue that any mention of investments made that might have been profitable are ultimately immaterial and irrelevant to the charges that the jury is considering.
The U.S. government contends that while it plans to introduce evidence of Bankman-Fried’s alleged misappropriation of customer deposits that resulted in massive losses on FTX’s balance sheet, it does not intend to offer any evidence regarding the ultimate losses of victims once the FTX bankruptcy process is complete.
Cointelegraph journalist Ana Paula Pereira is in New York covering the Bankman-Fried trial. The first week of the trial has been centered on establishing how some $8 billion of FTX customer funds went missing from the collapsed cryptocurrency exchange.
Magazine: Blockchain detectives: Mt. Gox collapse saw birth of Chainalysis
Members of Crypto Twitter are speculating whether Bankman-Fried and FTX will source the reported $530 million invested in Anthropic to pay off FTX creditors.
Google Cloud has reportedly invested $300 million into artificial intelligence (AI) startup firm Anthropic, which also happened to receive over $500 million in funds from former FTX CEO Sam Bankman-Fried about six months before FTX catastrophically collapsed.
While the $300 million figure was reported by Financial Times on Feb. 4, Anthropic confirmed the investment partnership with Google Cloud on the same day despite not disclosing any figures:
We're excited to use Google Cloud to train our AI systems, including Claude! https://t.co/IaqQ5lpJrP https://t.co/vOn5Cj4sPt
— Anthropic (@AnthropicAI) February 3, 2023
In the same announcement, Anthropic also confirmed that they previously raised capital from Bankman-Fried and former Alameda Research CEO Caroline Ellison, among others, in its Series B fundraising round:
The Series B round was led by Sam Bankman-Fried, CEO of FTX. The round also included participation from Caroline Ellison, Jim McClave, Nishad Singh, Jaan Tallinn, and the Center for Emerging Risk Research (CERR)."
The fundraising efforts led by Bankman-Fried took place in April, 2022, according to Crunchbase.
A recent post by The New York Times reported that of the $580 million raised, about $530 million came from Bankman-Fried and his former business partners.
But some believe the figure to be even higher too.
One FTX creditor believes Bankman-Fried’s stake in the AI company could be as high as $1.1 billion. However, the creditor didn't elaborate on the figure.
Other members of the Crypto Twitter community are also speculating whether Bankman-Fried’s stake will be used to pay off the massive pile of debt that FTX has accumulated from their recent controversies.
Related: Google AI turns all 10,000 BAYC NFTs into machine-made art
As for the partnership, Anthropic will now utilize Google Cloud’s GPU and TPU clusters to train, expand, and implement its AI chatbox, called “Claude” — similar to that of OpenAI's ChatGTP.
Google Cloud received about a 10% stake in Anthropic, according to Financial Times.
While it remains to be seen where the bulk of the debt in the FTX bankruptcy case will be sourced from, Bankman-Fried personally pleaded not guiltty to all eight fraud and conspiracy-based charges laid against him on Jan. 3.
Bankman-Fried currently remains under house arrest at his parent’s California home until his trial date, which is set for Oct. 2, 2023.
As the artificial intelligence (AI) wars intensify, the AI firm Anthropic has raised $300 million from Google and sources say that the tech giant will get roughly a 10% stake in the AI company. Interestingly, in April 2022, Anthropic raised approximately $500 million from sources including Sam Bankman-Fried (SBF), co-founder of FTX; Caroline Ellison, former […]