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OpenAI Sued for Fraud Allegations

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Re: OpenAI Sued for Fraud Allegations

#11

Post by godfrzero »

minimaxir wrote: post #3

The argument in the complaint is that "OpenAI said they would develop software for everyone, but they gave early favoritism to YC companies, so they went back on their promise." This complaint sounds like a high-effort shitpost. The plantiff is filing this pro se. Just see the full list of defendants: SAM ALTMAN, an individual; REID HOFFMAN, an individual; GREG BROCKMAN, an individual; ILYA SUTSKEVER, an individual;…

Not a lawyer, but my reading of this was quite different. It seems to me like the core of the argument is that "OpenAI" wants non-profit benefits while clearly profiting. While the complaint document itself is verbose, I imagine this is the kind of thing that eventually contributes to setting a precedent for how training data is handled in the legal system as well?

Re: OpenAI Sued for Fraud Allegations

#15

Post by encryptluks2 »

minimaxir wrote: post #6
generationP wrote: post #2

TL;DR anyone? The filing takes an ungodly amount of time to load and the server might croak under HN pressure.

I'd upload the PDF of the complaint, but it's 55 MB for some reason which will kill the bandwidth of any free-sharing service.

[dead]

Re: OpenAI Sued for Fraud Allegations

#16

Post by zdragnar »

minimaxir wrote: post #3

The argument in the complaint is that "OpenAI said they would develop software for everyone, but they gave early favoritism to YC companies, so they went back on their promise." This complaint sounds like a high-effort shitpost. The plantiff is filing this pro se. Just see the full list of defendants: SAM ALTMAN, an individual; REID HOFFMAN, an individual; GREG BROCKMAN, an individual; ILYA SUTSKEVER, an individual;…

Early favoritism isn't merely early access, it is for commercial benefit- not entirely unlike insider trading, as far as rough analogies go.

Re: OpenAI Sued for Fraud Allegations

#17

Post by minimaxir »

godfrzero wrote: post #11
minimaxir wrote: post #3

The argument in the complaint is that "OpenAI said they would develop software for everyone, but they gave early favoritism to YC companies, so they went back on their promise." This complaint sounds like a high-effort shitpost. The plantiff is filing this pro se. Just see the full list of defendants: SAM ALTMAN, an individual; REID HOFFMAN, an individual; GREG BROCKMAN, an individual; ILYA SUTSKEVER, an individual;…

Not a lawyer, but my reading of this was quite different. It seems to me like the core of the argument is that "OpenAI" wants non-profit benefits while clearly profiting. While the complaint document itself is verbose, I imagine this is the kind of thing that eventually contributes to setting a precedent for how training data is handled in the legal system as well?

IANAL too, but if there is indeed a legal case for material misrepresentation, it would make more sense to be brought by OpenAI shareholders or the FTC, not some random dude from Texas.

Re: OpenAI Sued for Fraud Allegations

#18

Post by tomohelix »

Here is a quick summary:

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.

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.

Re: OpenAI Sued for Fraud Allegations

#19

Post by dubcanada »

chronotis wrote: post #9
generationP wrote: post #2

TL;DR anyone? The filing takes an ungodly amount of time to load and the server might croak under HN pressure.

Without irony, here's ChatGPT's summary: This legal complaint alleges that defendants operating a non-profit entity for the benefit of humanity have committed massive fraud on donors, beneficiaries, and the public. The complaint raises concerns about OpenAI's operation, including its dual structure as a non-profit and a for-profit entity, potential insider dealings, and the exclusion of the general public from its be…

How would ChatGPT summarize something that just happened? It's not real time?

Re: OpenAI Sued for Fraud Allegations

#20

Post by duskwuff »

minimaxir wrote: post #6
generationP wrote: post #2

TL;DR anyone? The filing takes an ungodly amount of time to load and the server might croak under HN pressure.

I'd upload the PDF of the complaint, but it's 55 MB for some reason which will kill the bandwidth of any free-sharing service.

> it's 55 MB for some reason

Because it has 280 pages of newspaper articles and white papers about OpenAI, ChatGPT, and other startups attached to it as exhibits, many of which are only tangentially related to the case.

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