The Japanese privacy watchdog has warned OpenAI about collecting sensitive data. Meanwhile, the founder of GQG partners is questioning whether the stock market rebound is due to artificial intelligence (AI) hype.
There is exciting sentiment about the potential of AI, especially after the launch of OpenAI’s chatbot, ChatGPT. But regulators are working to ensure users’ privacy is not compromised.
OpenAI Faces Heat From Regulator
According to Reuters, Japan’s privacy watchdog, the Personal Information Protection Commission, has asked OpenAI to minimize the collection of sensitive data for machine learning.
And the watchdog has warned it may need to take further actions if needed. Along with a warning from Japan, OpenAI has also faced hurdles in other jurisdictions.
The creator of ChatGPT had to pause its operations in Italy for over a month due to restrictions from authorities. Then, on April 28, it announced a return to Italy after resolving the privacy-related concerns raised by Italian regulators.
Last month, due to a tussle with the European Union (EU), OpenAI considered leaving Europe. The firm’s co-founder Sam Altman believed the EU AI act was “over-regulating.”
Some Winners, More Losers
While OpenAI is involved in regulatory battles, Rajiv Jain, the founder of asset management firm GQG Partners, believes that AI will create some winners, but many more losers.
According to the FT, Jain believes that only a handful of companies will sustain the stock market rebound of 2023. His firm is betting big on Nvidia by purchasing shares worth $2.3 billion in the first quarter. Jain said:
The most obvious winners at this point, besides Nvidia, will be the larger tech names, whether it’s Alphabet or Meta or these kinds of names. Some software and IT services companies may end up on the losing side as AI automates parts of their businesses, and a lot of the basic stuff being done will be redundant.
Nvidia looks set to ride the AI wave with a new product lineup. The chipmaker hit the $1 trillion valuation this week.
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