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OpenAI Appeals Court Order on Data Preservation in NYT Copyright Lawsuit

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OpenAI has appealed a recent court order requiring it to indefinitely preserve ChatGPT output data in an ongoing copyright lawsuit filed by The New York Times (NYT). The company argues that the order conflicts with its obligations to protect user privacy.

Last month, the court mandated that OpenAI must preserve and segregate all output log data, after the NYT requested this as part of the discovery process. In response, OpenAI filed a motion on June 3 to vacate the data preservation order, according to a court filing.

OpenAI CEO Sam Altman publicly criticized the order on X, stating, “We will fight any demand that compromises our users’ privacy; this is a core principle.” He added that the NYT’s request was “inappropriate” and “sets a bad precedent.”

The lawsuit, originally filed in 2023, accuses OpenAI and its partner Microsoft of using millions of NYT articles without permission to train their language models, including the one powering ChatGPT. The Times alleges that this constitutes copyright infringement.

U.S. District Judge Sidney Stein previously ruled that the Times had made a plausible case that OpenAI and Microsoft may have induced users to infringe on its copyrights. In an earlier opinion, the judge allowed the case to proceed, citing numerous and widely publicized instances where ChatGPT reproduced substantial portions of Times content.

While the NYT declined to comment on OpenAI’s appeal, the case remains one of the highest-profile legal challenges facing generative AI companies over training data use and copyright infringement claims.

Broadcom Raises Revenue Forecast on AI Chip Demand but Shares Dip

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Broadcom delivered a stronger-than-expected revenue forecast for its third quarter, supported by robust demand for its networking and custom AI computing chips. The company projected Q3 revenue of approximately $15.80 billion, exceeding analysts’ average estimate of $15.71 billion according to LSEG data.

Despite the upbeat forecast, Broadcom’s shares fell 4% in after-hours trading. The stock had already climbed nearly 30% over the past month and around 12% for the year, leading some investors to view the forecast as insufficiently exceeding high market expectations. “Clearly, expectations were high coming into the print,” said Kinngai Chan, senior research analyst at Summit Insights Group.

The Palo Alto-based company plays a crucial role in the AI hardware ecosystem, designing custom processors and networking chips for major AI and cloud computing clients such as OpenAI and Google. Broadcom has begun shipping its newest networking chip, the Tomahawk 6, which doubles the performance of its predecessor and enhances data center efficiency for AI workloads.

Broadcom CEO Hock Tan highlighted the ongoing growth, noting that AI semiconductor revenue is expected to accelerate to $5.1 billion in the third quarter, marking ten consecutive quarters of growth. “Our hyperscale partners continue to invest,” Tan stated. In contrast, non-AI semiconductor revenue remains sluggish and near the bottom of its cycle.

For the second quarter, Broadcom reported total revenue of $15 billion, narrowly surpassing analysts’ estimates of $14.99 billion. Revenue from its semiconductor segment, which includes products for data centers and networking, grew 16.7% year-over-year to $8.41 billion.

Anthropic CEO Criticizes Proposed 10-Year Ban on State AI Regulation as ‘Too Blunt’

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Dario Amodei, CEO of Anthropic, argued in a New York Times opinion piece that a Republican proposal to block states from regulating artificial intelligence for 10 years is an overly blunt approach. Instead, he called for a coordinated federal effort by the White House and Congress to establish transparency standards for AI companies.

Amodei warned that a decade-long moratorium on state regulations would leave a regulatory gap with “no ability for states to act, and no national policy as a backstop,” especially given how rapidly AI technology is advancing.

The proposed ban, included in former President Donald Trump’s tax cut bill, seeks to preempt recent AI laws passed in several states. However, it has faced pushback from a bipartisan coalition of attorneys general who support state-level oversight of high-risk AI applications.

Amodei recommended a federal transparency standard requiring AI developers to implement rigorous testing and evaluation policies, disclose risk mitigation plans, and publicly share how they ensure the safety of their models before release.

He noted that Anthropic, supported by Amazon, already publishes such transparency reports, and competitors like OpenAI and Google DeepMind have adopted similar practices. Amodei suggested that legislation might be necessary to maintain transparency as AI models grow more powerful and corporate incentives to disclose risks may wane.