Reddit selling your user-data for AI training?

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Tuesday 20th of February
Today we’ll cover

• Together with VANTA

• 💰 Reddit Inks $60 Million AI Deal as Prelude to IPO

• 💸 Masayoshi Son's Bold $100 Billion Bet on AI Chip Innovation

• ✈️ Air Canada Held Accountable for Chatbot's False Fare Promise

TOGETHER WITH VANTA

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AI DATA
💰 Reddit Inks $60 Million AI Deal as Prelude to IPO

Social media giant licenses content for AI training, signaling new revenue streams ahead of market debut

The Reverie

Reddit has entered into a significant content licensing agreement with an unnamed AI company, allowing the use of its vast content to train AI models. This $60 million deal comes as Reddit prepares for an initial public offering (IPO), potentially valuing the company at $5 billion.

Details

• The deal permits an AI company to utilize Reddit's user-generated content to enhance AI model training, reflecting the growing interest in AI applications.

• Reddit's decision to license content for AI training could set a precedent for future agreements in the tech industry.

• The company's move to monetize its content through AI partnerships may be a strategic effort to boost investor confidence as it approaches its IPO.

Why Should You Care?

This development is a testament to the increasing value of user-generated data in training AI models and the potential for new business models in the social media landscape. For Reddit, this deal represents a strategic pivot to diversify revenue streams and enhance its appeal to investors.

It also raises questions about the ethics of using public data for AI training and how users will react to their content being utilized in this manner.

AI CHIP WARS
💸 Masayoshi Son's Bold $100 Billion Bet on AI Chip Innovation

SoftBank's visionary leader targets AI chip market dominance, challenging Nvidia with a massive new venture.

The Reverie

Japanese billionaire and SoftBank Group Corp. founder, Masayoshi Son, is making headlines with his ambitious plan to raise $100 billion for a new venture aimed at developing AI chips, potentially reshaping the competitive landscape of the semiconductor industry.

Named "Izanagi," after the Japanese deity of creation, this venture seeks to rival Nvidia Corp. and establish a new powerhouse in the AI chip market, leveraging SoftBank's financial resources and strategic position within the tech ecosystem

Details

• SoftBank plans to contribute $30 billion to the venture, with the remaining $70 billion expected to come from Middle Eastern institutions, highlighting the global scale and ambition of the project

• The initiative aims to complement and enhance the capabilities of Arm Holdings Plc, a leading chip design company and a key asset in SoftBank's portfolio, potentially altering the dynamics of the global semiconductor market

• Masayoshi Son envisions this venture as a step towards realizing artificial general intelligence (AGI) within the next decade, underscoring his long-term commitment to advancing AI technology and its applications

Why Should You Care?

This move by Masayoshi Son and SoftBank is not just about entering the AI chip market; it's about leading it. Son's ambitious plan represents a pivotal moment in the ongoing "AI chip wars," signaling a shift towards more intense competition and collaboration in the quest to unlock the full potential of AI

AI CHATBOTS
✈️ Air Canada Held Accountable for Chatbot's False Fare Promise

Tribunal orders airline to honor refund after AI chatbot misinforms customer on bereavement policy.

The Reverie

In a precedent-setting decision, Air Canada has been mandated by the Civil Resolution Tribunal of British Columbia to issue a refund to a customer who was misled by the airline's AI chatbot regarding bereavement fares. The chatbot erroneously advised the customer that a post-flight refund was possible, contrary to the airline's actual policy.

Details

• The chatbot told the customer to book a regular ticket and request a partial refund under the airline's bereavement policy within 90 days, which was incorrect

• Air Canada attempted to argue that the chatbot was a separate legal entity and not its responsibility, but the tribunal ruled against this claim

• The tribunal ordered Air Canada to reimburse the customer $650.88 CAD off the original fare of $1,640.36 CAD, plus additional damages for interest and tribunal fees

Why Should You Care?

This case underscores the growing legal and ethical responsibilities companies face when deploying AI systems for customer service. As AI becomes more prevalent in customer interactions, the accuracy and reliability of these systems are critical. This ruling could set a significant precedent for future cases involving AI chatbots and their legal implications.

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Agent. AI
Written by Dharmesh Shah. Dharmesh Shah is co-founder and CTO of HubSpot, and writes in-depth, technical (data-science background) insights in how AI works. This is a great supplement to The AI Reverie:

AI Minds Newsletter
“Navigating the Intersection of Human Minds and AI”. This newsletters dives deeper into usecases, and features research papers and tools that help you become smarter about AI. Highly recommended reading.

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