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OpenAI Sued for Fraud Allegations

78 pointsby iamnotarobotmanabout 2 years ago

11 comments

minimaxirabout 2 years ago
The argument in the complaint is that &quot;OpenAI said they would develop software for everyone, but they gave early favoritism to YC companies, so they went back on their promise.&quot; This complaint sounds like a high-effort shitpost. The plantiff is filing this pro se.<p>Just see the full list of defendants:<p>SAM ALTMAN, an individual; REID HOFFMAN, an individual; GREG BROCKMAN, an individual; ILYA SUTSKEVER, an individual; WOJCIECH ZAREMBA, an individual; JOHN SCHULMAN, an individual; TASHA MCCAULEY, an individual; BRIAN CHESKY, an individual; ADAM D’ANGELO, an individual; ANDREJ KARPATHY, an individual; PAMELA VAGATA, an individual; TREVOR BLACKWELL, an individual; BRAD LIGHTCAP, an individual; CHRIS CLARK, an individual; JESSICA LIVINGSTON, an individual; WILL HURD, an individual; HELEN TONER, an individual; TOMER KAFTAN, an individual; MICROSOFT CORPORATION, a corporation; MATTHEW BROWN COMPANIES, a company; BEDROCK CAPITAL PARTNERS I, L.P., a limited partnership; SEQUOIA CAPITAL U.S. VENTURE 2010 PARTNERS FUND, L.P., a limited partnership; ANDREESSON HOROWITZ ANGEL FUND I, LLC, a limited liability company; TIGER GLOBAL MANAGEMENT, LLC, a limited liability company; KHOSLA VENTURES, LLC, a limited liability company; HOFFMAN KOFMAN FOUNDATION; OPEN RESEARCH LAB, INC., a nonprofit corporation; CASETEXT, INC., a stock corporation; INSTACART, a corporation; ZAPIER, INC., a corporation; and DOES 1 through 10, inclusive,
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tomohelixabout 2 years ago
Here is a quick summary:<p>They are calling fraud because OAI was mixing nonprofit and capped profit to avoid taxes and the likes. They also made claims about unfair representations coming from ChatGPT and the executive composition of OAI, which apparently looks like insider trading and information manipulation. They alleged that OAI participated in election interference during 2020. They also said OAI was recklessly making advances in disruptive tech faster than legislators can make laws for them.<p>Basically, a prime example of a vulture coming in to sue anything that looks like it can give them some money. This is part of the reason why every company need a team of lawyers to deal with this perversion of justice.
umanghereabout 2 years ago
It took forever to get the document off SFTC’s website, so I mirrored it behind CloudFront for everyone’s convenience.<p><a href="https:&#x2F;&#x2F;blog.umangis.me&#x2F;static&#x2F;08539708.pdf" rel="nofollow">https:&#x2F;&#x2F;blog.umangis.me&#x2F;static&#x2F;08539708.pdf</a>
skilledabout 2 years ago
I think a lot of people have a lot of opinions on any kind of feedback that is related to, &quot;OpenAI took everyone&#x27;s content and is now profiting off of it.&quot;.<p>The way I see it, the biggest losers are the average consumers. If you got skin in the game and you know how to automate the OpenAI API at scale - you&#x27;re winning big. Google can&#x27;t keep up with what is real or what isn&#x27;t if you actually put in the work to structure the output in a useful manner. This can be done very efficiently and at scale if you know what you are doing.<p>So, not only is OpenAI winning but so are people who know how to build content websites and know how to get them to rank. The repetitive content cycle has always been a problem on the web (which is more the reason why places like HN are so great to find actual first-person experiences), but it is about to get amplified a hundredfold.<p>What OpenAI did is give <i>everyone</i> access to the Internet&#x27;s content and let everyone mash it together in a way that fits their agenda. Everything that came before ChatGPT (and GPT-4) is pretty much rendered &quot;the past&quot;. I&#x27;d definitely be pissed. That content was always there, of course. But before all this, you actually had to manually put in the work and the hours to try and piece together multiple key points from 10 different sources to create one unique perspective. OpenAI took a massive dookie on all that and just said fuck it. Let the genie out of the box and let us take a massive cut of the profits in the process.<p>I have zero doubt in my mind that OpenAI knew exactly what they were doing. They knew what kind of lawsuits or other complaints were going to come their way. And they still went ahead and released it anyway. And they&#x27;re about to go even more crazy with Plugins. I&#x27;m not expecting this to happen per se, but I do have a gut feeling that some kind of brakes are going to be put on all this because whether you agree or not, this whole thing is out of control and not being controlled properly at all.
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GreedClarifiesabout 2 years ago
While this is clearly a pathetic lawsuit, I do think it highlights that OpenAI’s status as a non profit is a sham.<p>Likely they adopted the non profit status as a recruiting tool and they should drop it and join the ranks of for profit companies.
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moneywoesabout 2 years ago
Hmm strange the captcha isn’t letting me pass
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ftxbroabout 2 years ago
ten surprising things I learned on my journey to complete the elaborate series of CAPTCHAs required by this website
photoGrantabout 2 years ago
For how fast and how many upvotes this submission received -- why don&#x27;t I see it on the front page?
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mindvirusabout 2 years ago
Managed to load the PDF. It seems to be pretty scattershot, basically a collection of every complaint we&#x27;ve all heard about AI. Not a lawyer but key complaints seem to be:<p>* Despite OpenAI’s mission to ‘benefit all of humanity in a broad and distributed manner,’ early stakeholders that are part of the YC network or bought in are now getting commercially invaluable early access to these systems.<p>* These GPTs have been trained on large datasets that belong to the commons; text, images, and video freely available across the internet. This free data is typically only used for research purposes under Fair Use law. No compensation has been offered to anyone who created this data. Much of it is copyrighted.<p>* The blitzscaling of OpenAI is problematic and illegal in a number of ways (Fraud, Breach of Trust and Fiduciary Duties, Legal Disruption, Copyright infringement, etc, etc, etc)<p>* Demonstrates bias against Trump and not Biden.
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jeroenhdabout 2 years ago
A Cloudflare captcha AND a Google captcha and I&#x27;m not even on TOR. I don&#x27;t know what this website is defending against but it must be botted to hell!<p>I&#x27;m not sure what the relationship between the alleged victim of fraud and the alleged perpetrators is, but I doubt &quot;being a member of humanity&quot; is good enough to imply a contractual obligation.<p>The allegation of copyright infringement due to AI stealing and remixing&#x2F;republishing online content may hold water if the argument is constructed well, but I don&#x27;t think this lawsuit is going to be the one answering that important open question.<p>The litigant filing pro se also doesn&#x27;t give me much confidence that this lawsuit will succeed. This seems like a rather spurious lawsuit to me. I don&#x27;t know why you would possibly throw such resources against the court, but I&#x27;d expect someone suing a billion dollar company to at least get a(nother) lawyer.<p>Honestly, the claim that both not wanting to generate something nice about Donal Trump and that YC seems to be democrat-aligned are somehow &quot;Banned Political Activities&quot; makes me think this person needs help. If one politician&#x27;s values match more with an organization&#x27;s goal or algorithmic output that&#x27;s not &quot;political campaigning&quot;, that&#x27;s just a symptom of thinking alike. If reading all the internet has to say about Trump means the algorithm concludes there&#x27;s nothing good to say, it&#x27;s probably time to reevaluate your political compass rather than sue the tool for disagreeing with you.
generationPabout 2 years ago
TL;DR anyone? The filing takes an ungodly amount of time to load and the server might croak under HN pressure.
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