OpenAI and Anthropic agree to let U.S. AI Safety Institute test and evaluate new models
Jakub Porzycki | Nurphoto | Getty Images
OpenAI and Anthropic, the two most richly valued artificial intelligence startups, have agreed to let the U.S. AI Safety Institute test their new models before releasing them to the public, following increased concerns in the industry about safety and ethics in AI.
The institute, housed within the Department of Commerce at the National Institute of Standards and Technology (NIST), said in a press release that it will get “access to major new models from each company prior to and following their public release.”
The group was established after the Biden-Harris administration issued the U.S. government’s first-ever executive order on artificial intelligence in October 2023, requiring new safety assessments, equity and civil rights guidance and research on AI’s impact on the labor market.
“We are happy to have reached an agreement with the US AI Safety Institute for pre-release testing of our future models,” OpenAI CEO Sam Altman wrote in a post on X. OpenAI also confirmed to CNBC on Thursday that, in the past year, the company has doubled its number of weekly active users from late last year to 200 million. Axios was first to report on the number.
The news comes a day after reports surfaced that OpenAI is in talks to raise a funding round valuing the company at more than $100 billion. Thrive Capital is leading the round and will invest $1 billion, according to a source with knowledge of the matter who asked not to be named because the details are confidential.
Anthropic, founded by ex-OpenAI research executives and employees, was most recently valued at $18.4 billion. Anthropic counts Amazon as a leading investor, while OpenAI is heavily backed by Microsoft.
The agreements between the government, OpenAI and Anthropic “will enable collaborative research on how to evaluate capabilities and safety risks, as well as methods to mitigate those risks,” according to Thursday’s release.
Jason Kwon, OpenAI’s chief strategy officer, told CNBC in a statement that, “We strongly support the U.S. AI Safety Institute’s mission and look forward to working together to inform safety best practices and standards for AI models.”
Jack Clark, co-founder of Anthropic, said the company’s “collaboration with the U.S. AI Safety Institute leverages their wide expertise to rigorously test our models before widespread deployment” and “strengthens our ability to identify and mitigate risks, advancing responsible AI development.”
A number of AI developers and researchers have expressed concerns about safety and ethics in the increasingly for-profit AI industry. Current and former OpenAI employees published an open letter on June 4, describing potential problems with the rapid advancements taking place in AI and a lack of oversight and whistleblower protections.
“AI companies have strong financial incentives to avoid effective oversight, and we do not believe bespoke structures of corporate governance are sufficient to change this,” they wrote. AI companies, they added, “currently have only weak obligations to share some of this information with governments, and none with civil society,” and they can not be “relied upon to share it voluntarily.”
Days after the letter was published, a source familiar to the mater confirmed to CNBC that the FTC and the Department of Justice were set to open antitrust investigations into OpenAI, Microsoft and Nvidia. FTC Chair Lina Khan has described her agency’s action as a “market inquiry into the investments and partnerships being formed between AI developers and major cloud service providers.”
On Wednesday, California lawmakers passed a hot-button AI safety bill, sending it to Governor Gavin Newsom’s desk. Newsom, a Democrat, will decide to either veto the legislation or sign it into law by Sept. 30. The bill, which would make safety testing and other safeguards mandatory for AI models of a certain cost or computing power, has been contested by some tech companies for its potential to slow innovation.
WATCH: Google, OpenAI and others oppose California AI safety bill
Dado Ruvic | Reuters
Dina Powell McCormick, who was a member of President Donald Trump’s first administration, has resigned from Meta’s board of directors.
Powell McCormick, who previously spent 16 years working at Goldman Sachs, notified Meta of her resignation on Friday, according to a filing with the SEC. The filing did not disclose why McCormick was stepping down from Meta’s board, but said her resignation was effective immediately.
Meta does not plan on replacing her board role, according to a person familiar with the matter who asked not to be named due to confidentiality. Powell McCormick is considering a potential strategic advisory role with Meta, but nothing has been decided, the person said.
Powell McCormick joined Meta’s board in April along with Stripe co-founder and CEO Patrick Collison. Meta CEO Mark Zuckerberg said in a statement at the time that the two executives “bring a lot of experience supporting businesses and entrepreneurs to our board.”
Powell McCormick served as a deputy national security advisor to President Trump during his first stint in office and was also an assistant secretary of state during President George W. Bush’s administration.
She is married to Sen. Dave McCormick, R-Pa, who took office in January.
Powell McCormick is the vice chair, president and head of global client services at BDT & MSD Partners, which formed in 2023 after the merchant bank BDT combined with Michael Dell’s investment firm MSD.
With her departure, Meta now has 14 board members, including UFC CEO Dana White, Broadcom CEO Hock Tan and former Enron executive John Arnold.
WATCH: TikTok signs joint venture to create TikTok USDS Joint Venture.
Technology
Musk’s $56 billion Tesla pay package must be restored as court rules cancellation was too extreme
Elon Musk‘s 2018 CEO pay package from Tesla, worth some $56 billion when it vested, must be restored, the Delaware Supreme Court ruled Friday.
“We reverse the Court of Chancery’s rescission remedy and award $1 in nominal damages,” the judges wrote in their opinion.
In the decision, the Delaware Supreme Court judges said a lower court’s decision to cancel Musk’s 2018 pay plan was too extreme a remedy and that the lower court did not give Tesla a chance to say what a fair compensation ought to be.
The decision on the appeal in this case, known as Tornetta v. Musk, likely ends the yearslong fight over Musk’s record-setting compensation.
Musk’s net worth is currently estimated at around $679.4 billion, according to the Forbes Real Time Billionaires List.
Dorothy Lund, a professor at Columbia Law School, told CNBC that while the Friday opinion may restore the 2018 pay plan for Musk, it leaves the rest of the lower court’s decision unaddressed and intact.
“The court had previously decided that Musk was a controlling shareholder of Tesla and that the Tesla board and he arranged an unfair pay plan for him,” she said. “None of that was reversed in this decision.”
“We are proud to have participated in the historic verdict below, calling to account the Tesla board and its largest stockholder for their breaches of fiduciary duty,” lawyers representing plaintiff Richard J. Tornetta said in an e-mailed statement.
Tesla did not immediately respond to requests for comment.
The Delaware Supreme Court issued the order per curiam with no single judge taking credit for writing the opinion and no dissent noted.
Musk’s 2018 CEO pay package from Tesla, comprised of 12 milestone-based tranches of stock, was unprecedented at the time it was proposed. After it was granted, the pay plan made Musk the wealthiest individual in the world.
Tesla shareholder Tornetta sued Tesla, filing a derivative action in 2018, accusing Musk and the company’s board of a breach of their fiduciary duties.
Delaware’s business-specialized Court of Chancery decided in January 2024 that the pay plan was improperly granted and ordered it to be rescinded.
In her decision, Chancellor Kathaleen McCormick also found that Musk “controlled Tesla,” and that the process leading to the board’s approval of his 2018 pay plan was “deeply flawed.”
Among other things, she found the Tesla board did not disclose all the material information they should have to investors before asking them to vote on and approve the plan.
After the earlier Tornetta ruling, Musk moved Tesla’s site of incorporation out of Delaware, bashed McCormick by name in posts on his social network X, formerly Twitter, where he has tens of millions of followers, and called for other entrepreneurs to reincorporate outside of the state.
Tesla also attempted to “ratify” the 2018 CEO pay plan by holding a second vote with shareholders in 2024.
In November, Tesla shareholders voted to approve an even larger CEO compensation plan for Musk.
The 2025 pay plan consists of 12 tranches of shares to be granted to the CEO if Tesla hits certain milestones over the next decade and is worth about $1 trillion in total. The new plan could also increase Musk’s voting power over the company from around 13% today to around 25%.
Shareholders had also approved a plan to replace Musk’s 2018 CEO pay if the Tornetta decision was upheld on appeal. That plan is now nullified.
As CNBC previously reported, a law firm that currently represents Tesla in this appeal penned a bill to overhaul corporate law in Delaware earlier this year. The bill was passed by the Delaware legislature in March, and if it had applied retroactively, it could have affected the outcome of this case.
Read the Delaware Supreme Court’s ruling here.
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