Yazılar

LinkedIn Lawsuit Over Customer Data Use for AI Models Dismissed

/in /tarafından

A class action lawsuit against Microsoft’s LinkedIn, which accused the platform of using customers’ private messages to train artificial intelligence models, has been dismissed. The case was dropped by plaintiff Alessandro De La Torre on Thursday in the U.S. federal court in San Jose, California, just days after the suit was filed. LinkedIn had argued that the allegations were unfounded.

De La Torre’s lawsuit claimed that LinkedIn violated the privacy of its Premium users by disclosing their private messages to third parties involved in developing AI. He accused the platform of breaching its promise to use customer data only to enhance its services, not for external uses like AI training.

The issue came to light when LinkedIn updated its privacy policy in September, revealing that a new account setting would not affect data used in previous AI training. This disclosure sparked concerns among users about how their data was being handled.

However, LinkedIn clarified that it had not shared private messages with third parties for AI training. In a LinkedIn post, Sarah Wight, the company’s vice president and legal counsel, confirmed, “We never did that.” De La Torre’s legal team acknowledged the clarification, stating that users could take comfort in knowing their private messages had not been used for AI purposes.

SoftBank in Talks to Lead OpenAI Funding Round at $300 Billion Valuation

/in /tarafından

SoftBank Group is in negotiations to lead a funding round for OpenAI, which could raise up to $40 billion, placing the artificial intelligence developer’s valuation at $300 billion, according to sources familiar with the matter. This potential round, which could set a record for a private company’s single funding round, is in the wake of growing competition from Chinese startup DeepSeek. DeepSeek’s new, affordable AI model has disrupted expectations about the costs of developing and deploying AI.

As part of the funding, SoftBank has valued OpenAI at $260 billion, a significant increase from its valuation of $150 billion just a few months ago. This funding is expected to be in the form of convertible notes, and similar to OpenAI’s previous round, it is contingent upon restructuring the company to remove control from its non-profit arm.

Leading the round would be a bold move for SoftBank, which has roughly $30 billion in cash to invest. While neither SoftBank nor OpenAI has commented on the discussions, it is believed that SoftBank could contribute between $15 billion and $25 billion directly into OpenAI. This money may also go towards OpenAI’s commitment to Stargate, a joint venture with Oracle and SoftBank aimed at helping the U.S. maintain a competitive edge in the global AI race, with plans for up to $500 billion in investments.

Despite the funding talks, DeepSeek’s low-cost AI model has raised concerns within the AI sector. The startup, using Nvidia H800 chips, developed its DeepSeek-V3 model for less than $6 million, spurring questions about whether OpenAI and other labs can retain their dominance as competition intensifies from more affordable alternatives.

 

Microsoft and Meta Defend Heavy AI Investments Despite DeepSeek’s Low-Cost Advantage

/in /tarafından

In response to the breakthrough low-cost AI models developed by Chinese startup DeepSeek, CEOs of Microsoft and Meta have defended their substantial investments in artificial intelligence, emphasizing that the heavy spending is essential to staying competitive in the rapidly growing field. DeepSeek’s claims of outperforming Western AI models at a fraction of the cost have sparked concerns over the U.S. tech industry’s dominance, but both executives stressed that building extensive computing infrastructures is crucial to meeting rising corporate demands.

Meta CEO Mark Zuckerberg highlighted the strategic advantage that heavy investments in capital expenditure and infrastructure will bring over time. Microsoft CEO Satya Nadella echoed this sentiment, stating that such investments are needed to address the capacity constraints that have limited the company’s ability to capitalize fully on AI opportunities. Nadella also noted that as AI becomes more efficient and accessible, demand for the technology will grow exponentially.

Microsoft has allocated $80 billion for AI in its current fiscal year, while Meta has committed up to $65 billion. This stands in stark contrast to the roughly $6 million that DeepSeek claims to have spent on developing its AI model. However, U.S. executives and analysts note that DeepSeek’s reported costs are limited to computing power, not including broader development expenses.

Despite these substantial investments, investor patience is waning. Microsoft shares dropped 6% after the company revealed that its Azure cloud business growth would fall short of third-quarter expectations. Brian Mulberry, portfolio manager at Zacks Investment Management, emphasized the need for a clearer path to monetizing the investments.

Meanwhile, Meta’s stock rose more than 4% following a strong fourth-quarter performance, though its first-quarter sales forecast was underwhelming. Analysts, like Daniel Newman from Futurum Group, pointed out the disparity between capital expenditure and revenue generation in the AI sector.

Both companies have indicated efforts to moderate spending. Microsoft CFO Amy Hood stated that capital expenditures for the third and fourth quarters would remain around $22.6 billion, similar to the previous quarter, with growth rate expectations for fiscal 2026 being lower than in fiscal 2025.