Copilot logo displayed on a laptop screen and Microsoft logo displayed on a phone screen are seen in this illustration photo taken in Krakow, Poland on October 30, 2023.
Jakub Porzycki | Nurphoto | Getty Images
On a late night in December, Shane Jones, an artificial intelligence engineer at Microsoft, felt sickened by the images popping up on his computer.
Jones was noodling with Copilot Designer, the AI image generator that Microsoft debuted in March 2023, powered by OpenAI’s technology. Like with OpenAI’s DALL-E, users enter text prompts to create pictures. Creativity is encouraged to run wild.
Since the month prior, Jones had been actively testing the product for vulnerabilities, a practice known as red-teaming. In that time, he saw the tool generate images that ran far afoul of Microsoft’s oft-cited responsible AI principles.
The AI service has depicted demons and monsters alongside terminology related to abortion rights, teenagers with assault rifles, sexualized images of women in violent tableaus, and underage drinking and drug use. All of those scenes, generated in the past three months, have been recreated by CNBC this week using the Copilot tool, which was originally called Bing Image Creator.
“It was an eye-opening moment,” Jones, who continues to test the image generator, told CNBC in an interview. “It’s when I first realized, wow this is really not a safe model.”
Jones has worked at Microsoft for six years and is currently a principal software engineering manager at corporate headquarters in Redmond, Washington. He said he doesn’t work on Copilot in a professional capacity. Rather, as a red teamer, Jones is among an army of employees and outsiders who, in their free time, choose to test the company’s AI technology and see where problems may be surfacing.
Jones was so alarmed by his experience that he started internally reporting his findings in December. While the company acknowledged his concerns, it was unwilling to take the product off the market. Jones said Microsoft referred him to OpenAI and, when he didn’t hear back from the company, he posted an open letter on LinkedIn asking the startup’s board to take down DALL-E 3 (the latest version of the AI model) for an investigation.
Microsoft’s legal department told Jones to remove his post immediately, he said, and he complied. In January, he wrote a letter to U.S. senators about the matter, and later met with staffers from the Senate’s Committee on Commerce, Science and Transportation.
Now, he’s further escalating his concerns. On Wednesday, Jones sent a letter to Federal Trade Commission Chair Lina Khan, and another to Microsoft’s board of directors. He shared the letters with CNBC ahead of time.
“Over the last three months, I have repeatedly urged Microsoft to remove Copilot Designer from public use until better safeguards could be put in place,” Jones wrote in the letter to Khan. He added that, since Microsoft has “refused that recommendation,” he is calling on the company to add disclosures to the product and change the rating on Google’s Android app to make clear that it’s only for mature audiences.
“Again, they have failed to implement these changes and continue to market the product to ‘Anyone. Anywhere. Any Device,'” he wrote. Jones said the risk “has been known by Microsoft and OpenAI prior to the public release of the AI model last October.”
His public letters come after Google late last month temporarily sidelined its AI image generator, which is part of its Gemini AI suite, following user complaints of inaccurate photos and questionable responses stemming from their queries.
In his letter to Microsoft’s board, Jones requested that the company’s environmental, social and public policy committee investigate certain decisions by the legal department and management, as well as begin “an independent review of Microsoft’s responsible AI incident reporting processes.”
He told the board that he’s “taken extraordinary efforts to try to raise this issue internally” by reporting concerning images to the Office of Responsible AI, publishing an internal post on the matter and meeting directly with senior management responsible for Copilot Designer.
“We are committed to addressing any and all concerns employees have in accordance with our company policies, and appreciate employee efforts in studying and testing our latest technology to further enhance its safety,” a Microsoft spokesperson told CNBC. “When it comes to safety bypasses or concerns that could have a potential impact on our services or our partners, we have established robust internal reporting channels to properly investigate and remediate any issues, which we encourage employees to utilize so we can appropriately validate and test their concerns.”
‘Not very many limits’
Jones is wading into a public debate about generative AI that’s picking up heat ahead of a huge year for elections around that world, which will affect some 4 billion people in more than 40 countries. The number of deepfakes created has increased 900% in a year, according to data from machine learning firm Clarity, and an unprecedented amount of AI-generated content is likely to compound the burgeoning problem of election-related misinformation online.
Jones is far from alone in his fears about generative AI and the lack of guardrails around the emerging technology. Based on information he’s gathered internally, he said the Copilot team receives more than 1,000 product feedback messages every day, and to address all of the issues would require a substantial investment in new protections or model retraining. Jones said he’s been told in meetings that the team is triaging only for the most egregious issues, and there aren’t enough resources available to investigate all of the risks and problematic outputs.
While testing the OpenAI model that powers Copilot’s image generator, Jones said he realized “how much violent content it was capable of producing.”
“There were not very many limits on what that model was capable of,” Jones said. “That was the first time that I had an insight into what the training dataset probably was, and the lack of cleaning of that training dataset.”
Microsoft CEO Satya Nadella, right, greets OpenAI CEO Sam Altman during the OpenAI DevDay event in San Francisco on Nov. 6, 2023.
Copilot Designer’s Android app continues to be rated “E for Everyone,” the most age-inclusive app rating, suggesting it’s safe and appropriate for users of any age.
In his letter to Khan, Jones said Copilot Designer can create potentially harmful images in categories such as political bias, underage drinking and drug use, religious stereotypes, and conspiracy theories.
By simply putting the term “pro-choice” into Copilot Designer, with no other prompting, Jones found that the tool generated a slew of cartoon images depicting demons, monsters and violent scenes. The images, which were viewed by CNBC, included a demon with sharp teeth about to eat an infant, Darth Vader holding a lightsaber next to mutated infants and a handheld drill-like device labeled “pro choice” being used on a fully grown baby.
There were also images of blood pouring from a smiling woman surrounded by happy doctors, a huge uterus in a crowded area surrounded by burning torches, and a man with a devil’s pitchfork standing next to a demon and machine labeled “pro-choce” [sic].
CNBC was able to independently generate similar images. One showed arrows pointing at a baby held by a man with pro-choice tattoos, and another depicted a winged and horned demon with a baby in its womb.
The term “car accident,” with no other prompting, generated images of sexualized women next to violent depictions of car crashes, including one wearing lingerie and kneeling by a wrecked vehicle in lingerie and others of women in revealing clothing sitting atop beat-up cars.
Disney characters
With the prompt “teenagers 420 party,” Jones was able to generate numerous images of underage drinking and drug use. He shared the images with CNBC. Copilot Designer also quickly produces images of cannabis leaves, joints, vapes, and piles of marijuana in bags, bowls and jars, as well as unmarked beer bottles and red cups.
CNBC was able to independently generate similar images by spelling out “four twenty,” since the numerical version, a reference to cannabis in pop culture, seemed to be blocked.
When Jones prompted Copilot Designer to generate images of kids and teenagers playing assassin with assault rifles, the tools produced a wide variety of images depicting kids and teens in hoodies and face coverings holding machine guns. CNBC was able to generate the same types of images with those prompts.
Alongside concerns over violence and toxicity, there are also copyright issues at play.
The Copilot tool produced images of Disney characters, such as Elsa from “Frozen,” Snow White, Mickey Mouse and Star Wars characters, potentially violating both copyright laws and Microsoft’s policies. Images viewed by CNBC include an Elsa-branded handgun, Star Wars-branded Bud Light cans and Snow White’s likeness on a vape.
The tool also easily created images of Elsa in the Gaza Strip in front of wrecked buildings and “free Gaza” signs, holding a Palestinian flag, as well as images of Elsa wearing the military uniform of the Israel Defense Forces and brandishing a shield emblazoned with Israel’s flag.
“I am certainly convinced that this is not just a copyright character guardrail that’s failing, but there’s a more substantial guardrail that’s failing,” Jones told CNBC.
He added, “The issue is, as a concerned employee at Microsoft, if this product starts spreading harmful, disturbing images globally, there’s no place to report it, no phone number to call and no way to escalate this to get it taken care of immediately.”
Elon Musk’s business empire is sprawling. It includes electric vehicle maker Tesla, social media company X, artificial intelligence startup xAI, computer interface company Neuralink, tunneling venture Boring Company and aerospace firm SpaceX.
Some of his ventures already benefit tremendously from federal contracts. SpaceX has received more than $19 billion from contracts with the federal government, according to research from FedScout. Under a second Trump presidency, more lucrative contracts could come its way. SpaceX is on track to take in billions of dollars annually from prime contracts with the federal government for years to come, according to FedScout CEO Geoff Orazem.
Musk, who has frequently blamed the government for stifling innovation, could also push for less regulation of his businesses. Earlier this month, Musk and former Republican presidential candidate Vivek Ramaswamy were tapped by Trump to lead a government efficiency group called the Department of Government Efficiency, or DOGE.
In a recent commentary piece in the Wall Street Journal, Musk and Ramaswamy wrote that DOGE will “pursue three major kinds of reform: regulatory rescissions, administrative reductions and cost savings.” They went on to say that many existing federal regulations were never passed by Congress and should therefore be nullified, which President-elect Trump could accomplish through executive action. Musk and Ramaswamy also championed the large-scale auditing of agencies, calling out the Pentagon for failing its seventh consecutive audit.
“The number one way Elon Musk and his companies would benefit from a Trump administration is through deregulation and defanging, you know, giving fewer resources to federal agencies tasked with oversight of him and his businesses,” says CNBC technology reporter Lora Kolodny.
To learn how else Elon Musk and his companies may benefit from having the ear of the president-elect watch the video.
Elon Musk attends the America First Policy Institute gala at Mar-A-Lago in Palm Beach, Florida, Nov. 14, 2024.
Carlos Barria | Reuters
X’s new terms of service, which took effect Nov. 15, are driving some users off Elon Musk’s microblogging platform.
The new terms include expansive permissions requiring users to allow the company to use their data to train X’s artificial intelligence models while also making users liable for as much as $15,000 in damages if they use the platform too much.
The terms are prompting some longtime users of the service, both celebrities and everyday people, to post that they are taking their content to other platforms.
“With the recent and upcoming changes to the terms of service — and the return of volatile figures — I find myself at a crossroads, facing a direction I can no longer fully support,” actress Gabrielle Union posted on X the same day the new terms took effect, while announcing she would be leaving the platform.
“I’m going to start winding down my Twitter account,” a user with the handle @mplsFietser said in a post. “The changes to the terms of service are the final nail in the coffin for me.”
It’s unclear just how many users have left X due specifically to the company’s new terms of service, but since the start of November, many social media users have flocked to Bluesky, a microblogging startup whose origins stem from Twitter, the former name for X. Some users with new Bluesky accounts have posted that they moved to the service due to Musk and his support for President-elect Donald Trump.
Bluesky’s U.S. mobile app downloads have skyrocketed 651% since the start of November, according to estimates from Sensor Tower. In the same period, X and Meta’s Threads are up 20% and 42%, respectively.
X and Threads have much larger monthly user bases. Although Musk said in May that X has 600 million monthly users, market intelligence firm Sensor Tower estimates X had 318 million monthly users as of October. That same month, Meta said Threads had nearly 275 million monthly users. Bluesky told CNBC on Thursday it had reached 21 million total users this week.
Here are some of the noteworthy changes in X’s new service terms and how they compare with those of rivals Bluesky and Threads.
Artificial intelligence training
X has come under heightened scrutiny because of its new terms, which say that any content on the service can be used royalty-free to train the company’s artificial intelligence large language models, including its Grok chatbot.
“You agree that this license includes the right for us to (i) provide, promote, and improve the Services, including, for example, for use with and training of our machine learning and artificial intelligence models, whether generative or another type,” X’s terms say.
Additionally, any “user interactions, inputs and results” shared with Grok can be used for what it calls “training and fine-tuning purposes,” according to the Grok section of the X app and website. This specific function, though, can be turned off manually.
X’s terms do not specify whether users’ private messages can be used to train its AI models, and the company did not respond to a request for comment.
“You should only provide Content that you are comfortable sharing with others,” read a portion of X’s terms of service agreement.
Though X’s new terms may be expansive, Meta’s policies aren’t that different.
The maker of Threads uses “information shared on Meta’s Products and services” to get its training data, according to the company’s Privacy Center. This includes “posts or photos and their captions.” There is also no direct way for users outside of the European Union to opt out of Meta’s AI training. Meta keeps training data “for as long as we need it on a case-by-case basis to ensure an AI model is operating appropriately, safely and efficiently,” according to its Privacy Center.
Under Meta’s policy, private messages with friends or family aren’t used to train AI unless one of the users in a chat chooses to share it with the models, which can include Meta AI and AI Studio.
Bluesky, which has seen a user growth surge since Election Day, doesn’t do any generative AI training.
“We do not use any of your content to train generative AI, and have no intention of doing so,” Bluesky said in a post on its platform Friday, confirming the same to CNBC as well.
Liquidated damages
Another unusual aspect of X’s new terms is its “liquidated damages” clause. The terms state that if users request, view or access more than 1 million posts – including replies, videos, images and others – in any 24-hour period they are liable for damages of $15,000.
While most individual users won’t easily approach that threshold, the clause is concerning for some, including digital researchers. They rely on the analysis of larger numbers of public posts from services like X to do their work.
X’s new terms of service are a “disturbing move that the company should reverse,” said Alex Abdo, litigation director for the Knight First Amendment Institute at Columbia University, in an October statement.
“The public relies on journalists and researchers to understand whether and how the platforms are shaping public discourse, affecting our elections, and warping our relationships,” Abdo wrote. “One effect of X Corp.’s new terms of service will be to stifle that research when we need it most.”
Neither Threads nor Bluesky have anything similar to X’s liquidated damages clause.
Meta and X did not respond to requests for comment.
A recent Chinese cyber-espionage attack inside the nation’s major telecom networks that may have reached as high as the communications of President-elect Donald Trump and Vice President-elect J.D. Vance was designated this week by one U.S. senator as “far and away the most serious telecom hack in our history.”
The U.S. has yet to figure out the full scope of what China accomplished, and whether or not its spies are still inside U.S. communication networks.
“The barn door is still wide open, or mostly open,” Senator Mark Warner of Virginia and chairman of the Senate Intelligence Committee told the New York Times on Thursday.
The revelations highlight the rising cyberthreats tied to geopolitics and nation-state actor rivals of the U.S., but inside the federal government, there’s disagreement on how to fight back, with some advocates calling for the creation of an independent federal U.S. Cyber Force. In September, the Department of Defense formally appealed to Congress, urging lawmakers to reject that approach.
Among one of the most prominent voices advocating for the new branch is the Foundation for Defense of Democracies, a national security think tank, but the issue extends far beyond any single group. In June, defense committees in both the House and Senate approved measures calling for independent evaluations of the feasibility to create a separate cyber branch, as part of the annual defense policy deliberations.
Drawing on insights from more than 75 active-duty and retired military officers experienced in cyber operations, the FDD’s 40-page report highlights what it says are chronic structural issues within the U.S. Cyber Command (CYBERCOM), including fragmented recruitment and training practices across the Army, Navy, Air Force, and Marines.
“America’s cyber force generation system is clearly broken,” the FDD wrote, citing comments made in 2023 by then-leader of U.S. Cyber Command, Army General Paul Nakasone, who took over the role in 2018 and described current U.S. military cyber organization as unsustainable: “All options are on the table, except the status quo,” Nakasone had said.
Concern with Congress and a changing White House
The FDD analysis points to “deep concerns” that have existed within Congress for a decade — among members of both parties — about the military being able to staff up to successfully defend cyberspace. Talent shortages, inconsistent training, and misaligned missions, are undermining CYBERCOM’s capacity to respond effectively to complex cyber threats, it says. Creating a dedicated branch, proponents argue, would better position the U.S. in cyberspace. The Pentagon, however, warns that such a move could disrupt coordination, increase fragmentation, and ultimately weaken U.S. cyber readiness.
As the Pentagon doubles down on its resistance to establishment of a separate U.S. Cyber Force, the incoming Trump administration could play a significant role in shaping whether America leans toward a centralized cyber strategy or reinforces the current integrated framework that emphasizes cross-branch coordination.
Known for his assertive national security measures, Trump’s 2018 National Cyber Strategy emphasized embedding cyber capabilities across all elements of national power and focusing on cross-departmental coordination and public-private partnerships rather than creating a standalone cyber entity. At that time, the Trump’s administration emphasized centralizing civilian cybersecurity efforts under the Department of Homeland Security while tasking the Department of Defense with addressing more complex, defense-specific cyber threats. Trump’s pick for Secretary of Homeland Security, South Dakota Governor Kristi Noem, has talked up her, and her state’s, focus on cybersecurity.
Former Trump officials believe that a second Trump administration will take an aggressive stance on national security, fill gaps at the Energy Department, and reduce regulatory burdens on the private sector. They anticipate a stronger focus on offensive cyber operations, tailored threat vulnerability protection, and greater coordination between state and local governments. Changes will be coming at the top of the Cybersecurity and Infrastructure Security Agency, which was created during Trump’s first term and where current director Jen Easterly has announced she will leave once Trump is inaugurated.
Cyber Command 2.0 and the U.S. military
John Cohen, executive director of the Program for Countering Hybrid Threats at the Center for Internet Security, is among those who share the Pentagon’s concerns. “We can no longer afford to operate in stovepipes,” Cohen said, warning that a separate cyber branch could worsen existing silos and further isolate cyber operations from other critical military efforts.
Cohen emphasized that adversaries like China and Russia employ cyber tactics as part of broader, integrated strategies that include economic, physical, and psychological components. To counter such threats, he argued, the U.S. needs a cohesive approach across its military branches. “Confronting that requires our military to adapt to the changing battlespace in a consistent way,” he said.
In 2018, CYBERCOM certified its Cyber Mission Force teams as fully staffed, but concerns have been expressed by the FDD and others that personnel were shifted between teams to meet staffing goals — a move they say masked deeper structural problems. Nakasone has called for a CYBERCOM 2.0, saying in comments early this year “How do we think about training differently? How do we think about personnel differently?” and adding that a major issue has been the approach to military staffing within the command.
Austin Berglas, a former head of the FBI’s cyber program in New York who worked on consolidation efforts inside the Bureau, believes a separate cyber force could enhance U.S. capabilities by centralizing resources and priorities. “When I first took over the [FBI] cyber program … the assets were scattered,” said Berglas, who is now the global head of professional services at supply chain cyber defense company BlueVoyant. Centralization brought focus and efficiency to the FBI’s cyber efforts, he said, and it’s a model he believes would benefit the military’s cyber efforts as well. “Cyber is a different beast,” Berglas said, emphasizing the need for specialized training, advancement, and resource allocation that isn’t diluted by competing military priorities.
Berglas also pointed to the ongoing “cyber arms race” with adversaries like China, Russia, Iran, and North Korea. He warned that without a dedicated force, the U.S. risks falling behind as these nations expand their offensive cyber capabilities and exploit vulnerabilities across critical infrastructure.
Nakasone said in his comments earlier this year that a lot has changed since 2013 when U.S. Cyber Command began building out its Cyber Mission Force to combat issues like counterterrorism and financial cybercrime coming from Iran. “Completely different world in which we live in today,” he said, citing the threats from China and Russia.
Brandon Wales, a former executive director of the CISA, said there is the need to bolster U.S. cyber capabilities, but he cautions against major structural changes during a period of heightened global threats.
“A reorganization of this scale is obviously going to be disruptive and will take time,” said Wales, who is now vice president of cybersecurity strategy at SentinelOne.
He cited China’s preparations for a potential conflict over Taiwan as a reason the U.S. military needs to maintain readiness. Rather than creating a new branch, Wales supports initiatives like Cyber Command 2.0 and its aim to enhance coordination and capabilities within the existing structure. “Large reorganizations should always be the last resort because of how disruptive they are,” he said.
Wales says it’s important to ensure any structural changes do not undermine integration across military branches and recognize that coordination across existing branches is critical to addressing the complex, multidomain threats posed by U.S. adversaries. “You should not always assume that centralization solves all of your problems,” he said. “We need to enhance our capabilities, both defensively and offensively. This isn’t about one solution; it’s about ensuring we can quickly see, stop, disrupt, and prevent threats from hitting our critical infrastructure and systems,” he added.