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French Publishers and Authors Sue Meta for Alleged Copyright Infringement in AI Training

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France’s leading publishing and authors’ associations have filed a lawsuit against Meta, accusing the U.S. tech giant of using copyrighted content without permission to train its artificial intelligence (AI) systems. The lawsuit was filed earlier this week in a Paris court, with the plaintiffs alleging copyright infringement and economic “parasitism.”

The groups behind the lawsuit include the National Publishing Union (SNE), the National Union of Authors and Composers (SNAC), and the Society of Men of Letters (SGDL), which represent authors and publishers in France. They argue that Meta, the parent company of Facebook, Instagram, and WhatsApp, has been illegally using copyright-protected material to enhance its AI models.

Maia Bensimon, general delegate of SNAC, described the actions as a form of “monumental looting.” Renaud Lefebvre, Director General of SNE, referred to the lawsuit as “David versus Goliath,” emphasizing that the legal action aims to set a precedent for the protection of copyright in the face of rapidly advancing AI technologies.

This lawsuit marks the first of its kind in France against an AI giant, though similar legal actions are already underway in other countries, particularly in the United States. In 2023, Sarah Silverman, an American actress and author, along with other plaintiffs, sued Meta for allegedly misusing their works to train its Llama language model. Other authors, including Christopher Farnsworth, have also filed lawsuits against Meta for similar claims.

In addition to Meta, OpenAI, the creator of ChatGPT, faces similar copyright lawsuits in the United States, Canada, and India over the data used to train its generative AI systems.

Crypto Scams Expected to Hit Record High in 2024, Driven by AI, Warns Chainalysis

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Crypto Scams on the Rise, Likely to Reach Record High in 2024, Driven by AI and “Pig Butchering”

Crypto scams are expected to reach an alarming new peak in 2024, fueled by the growing prevalence of “pig butchering” scams and the increasing use of generative artificial intelligence (GenAI). According to blockchain analytics firm Chainalysis, revenue from crypto-related frauds has surged to new heights, with estimates suggesting that scams could generate as much as $12.4 billion (roughly Rs. 1,07,711 crore) by the end of the year. These figures highlight the increasingly sophisticated methods employed by scammers, making it harder for individuals to protect themselves from financial loss in the rapidly evolving world of cryptocurrency.

“Pig Butchering” Scams See Significant Growth

One of the primary drivers of this surge in scam revenue is the rise of “pig butchering” schemes. In these scams, perpetrators build fake relationships with victims over extended periods, often presenting themselves as romantic interests or trustworthy figures, before gradually persuading them to invest in fraudulent crypto ventures. Chainalysis reported a nearly 40 percent increase in the revenue generated by these scams in 2024 compared to the previous year. This method has proven to be particularly effective due to its slow, manipulative nature, which allows scammers to exploit their victims’ trust and make their schemes harder to detect early on.

Crypto Scam Revenue Reaches Record Numbers

Overall, the total revenue generated by crypto scams in 2024 has already surpassed $9.9 billion (approximately Rs. 85,996 crore), with experts predicting that the figure could climb even higher as more data becomes available. This growth in scam revenue underscores the increasing sophistication of fraudulent activities in the crypto space. Chainalysis researchers pointed out that the influx of new digital tools and platforms is making it easier for criminals to carry out scams on a larger scale, with the potential to reach more victims faster than ever before.

Role of Generative AI in Scaling Scams

Generative AI has played a pivotal role in helping scammers scale their operations exponentially. With the advent of AI technologies, fraudsters can now automate many of the tasks that once required human effort, such as creating convincing messages, generating fake personas, and even conducting initial stages of communication with potential victims. This automation allows criminals to run more extensive operations, reaching wider audiences with far less effort and at a lower cost. Chainalysis warned that the combination of GenAI and existing crypto marketplaces could allow scammers to multiply their reach, making it a dangerous time for both novice and experienced cryptocurrency users.

AI Chip Startup Positron Raises $23.5 Million to Challenge Nvidia

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Positron, a startup aiming to rival Nvidia in the artificial intelligence (AI) chip market, announced on Tuesday that it has raised $23.5 million in a seed funding round. Investors in the round included Valor Equity Partners, known for its support of Elon Musk’s ventures, along with Atreides Management, Flume Ventures, and Resilience Reserve.

Focus on Efficiency and Inference:

Positron’s chips are manufactured in Arizona and are designed to use less than a third of the power of Nvidia’s leading H100 graphical processing units (GPUs) while offering similar performance. The company’s chips are specifically intended for AI inference, the phase where AI models are utilized, as opposed to training the models. Although demand currently leans toward training chips, analysts forecast that the need for inference chips will rise as more AI applications are developed.

Industry Shift and Rising Costs:

With major players like OpenAI, Google, and Meta investing heavily in AI infrastructure, the demand for chips is expected to grow significantly. Meta, for example, has pledged to spend up to $65 billion this year, while Microsoft plans to invest $80 billion. OpenAI also announced a $500 billion Stargate infrastructure project. Despite Nvidia’s dominance, holding around 80% of the market, rising costs and concerns about over-reliance on a single supplier have pushed companies such as Microsoft, Meta, and OpenAI to seek alternative solutions, both in-house and externally.