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Companies like OpenAI and Midjourney have opened Pandora’s box, opening them up to considerable legal trouble by training their chatbots on the vastness of the internet while largely turning a blind eye to copyright.

As professor and author Gary Marcus and film industry concept artist Reid Southen, who has worked on several major films for the likes of Marvel and Warner Brothers, argue in a recent piece for IEEE Spectrum, tools like DALL-E 3 and Midjourney could land both companies in a “copyright minefield.”

It’s a heated debate that’s reaching fever pitch. The news comes after the New York Times sued Microsoft and OpenAI, alleging it was responsible for “billions of dollars” in damages by training ChatGPT and other large language models on its content without express permission. Well-known authors including “Game of Thrones” author George RR Martin and John Grisham recently made similar arguments in a separate copyright infringement case.

A new, potentially revolutionary artificial intelligence framework called “Blackout Diffusion” generates images from a completely empty picture, meaning that the machine-learning algorithm, unlike other generative diffusion models, does not require initiating a “random seed” to get started. Blackout Diffusion, presented at the recent International Conference on Machine Learning (“Blackout Diffusion: Generative Diffusion Models in Discrete-State Spaces”), generates samples that are comparable to the current diffusion models such as DALL-E or Midjourney, but require fewer computational resources than these models.

“Generative modeling is bringing in the next industrial revolution with its capability to assist many tasks, such as generation of software code, legal documents and even art,” said Javier Santos, an AI researcher at Los Alamos National Laboratory and co-author of Blackout Diffusion. “Generative modeling could be leveraged for making scientific discoveries, and our team’s work laid down the foundation and practical algorithms for applying generative diffusion modeling to scientific problems that are not continuous in nature.”

A new generative AI model can create images from a blank frame. (Image: Los Alamos National Laboratory)

The Times said OpenAI and Microsoft are advancing their technology through the “unlawful use of The Times’s work to create artificial intelligence products that compete with it” and “threatens The Times’s ability to provide that service”


The New York Times sued OpenAI and Microsoft for copyright infringement on Wednesday, opening a new front in the increasingly intense legal battle over the unauthorized use of published work to train artificial intelligence technologies.

The Times is the first major American media organization to sue the companies, the creators of ChatGPT and other popular A.I. platforms, over copyright issues associated with its written works. The lawsuit, filed in Federal District Court in Manhattan, contends that millions of articles published by The Times were used to train automated chatbots that now compete with the news outlet as a source of reliable information.

The suit does not include an exact monetary demand. But it says the defendants should be held responsible for “billions of dollars in statutory and actual damages” related to the “unlawful copying and use of The Times’s uniquely valuable works.” It also calls for the companies to destroy any chatbot models and training data that use copyrighted material from The Times.

Regulatory efforts to protect data are making strides globally. Patient data is protected by law in the United States and elsewhere. In Europe the General Data Protection Regulation (GDPR) guards personal data and recently led to a US $1.3 billion fine for Meta. You can even think of Apple’s App Store policies against data sharing as a kind of data-protection regulation.

“These are good constraints. These are constraints society wants,” says Michael Gao, founder and CEO of Fabric Cryptography, one of the startups developing FHE-accelerating chips. But privacy and confidentiality come at a cost: They can make it more difficult to track disease and do medical research, they potentially let some bad guys bank, and they can prevent the use of data needed to improve AI.

“Fully homomorphic encryption is an automated solution to get around legal and regulatory issues while still protecting privacy,” says Kurt Rohloff, CEO of Duality Technologies, in Hoboken, N.J., one of the companies developing FHE accelerator chips. His company’s FHE software is already helping financial firms check for fraud and preserving patient privacy in health care research.

Could artificial intelligence (AI) systems become conscious? A trio of consciousness scientists says that, at the moment, no one knows — and they are expressing concern about the lack of inquiry into the question.

In comments to the United Nations, three leaders of the Association for Mathematical Consciousness Science (AMCS) call for more funding to support research on consciousness and AI. They say that scientific investigations of the boundaries between conscious and unconscious systems are urgently needed, and they cite ethical, legal and safety issues that make it crucial to understand AI consciousness. For example, if AI develops consciousness, should people be allowed to simply switch it off after use?

Such concerns have been mostly absent from recent discussions about AI safety, such as the high-profile AI Safety Summit in the United Kingdom, says AMCS board member Jonathan Mason, a mathematician based in Oxford, UK and one of the authors of the comments. Nor did US President Joe Biden’s executive order seeking responsible development of AI technology address issues raised by conscious AI systems, Mason notes.