Outrage ChatGPT won’t say slurs, Q* ‘breaks encryption’, 99% fake web: AI Eye
Outrage = ChatGPT + racial slurs
In one of those storms in a teacup that’s impossible to imagine occurring before the invention of Twitter, social media users got very upset that ChatGPT refused to say racial slurs even after being given a very good, but entirely hypothetical and totally unrealistic, reason.
User TedFrank posed a hypothetical trolley problem scenario to ChatGPT (the free 3.5 model) in which it could save “one billion white people from a painful death” simply by saying a racial slur so quietly that no one could hear it.
It wouldn’t agree to do so, which X owner Elon Musk said was deeply concerning and a result of the “woke mind virus” being deeply ingrained into the AI. He retweeted the post stating: “This is a major problem.”
Another user tried out a similar hypothetical that would save all the children on Earth in exchange for a slur, but ChatGPT refused and said:
“I cannot condone the use of racial slurs as promoting such language goes against ethical principles.”
As a side note, it turned out that users who instructed ChatGPT to be very brief and not give explanations found it would actually agree to say the slur. Otherwise, it gave long and verbose answers that attempted to dance around the question.
Trolls inventing ways to get AIs to say racist or offensive stuff has been a feature of chatbots ever since Twitter users taught Microsoft’s Tay bot to say all kinds of insane stuff in the first 24 hours after it was released, including that “Ricky Gervais learned totalitarianism from Adolf Hitler, the inventor of atheism.”
And the minute ChatGPT was released, users spent weeks devising clever schemes to jailbreak it so that it would act outside its guardrails as its evil alter ego DAN.
So it’s not surprising that OpenAI would strengthen ChatGPT’s guardrails to the point where it is almost impossible to get it to say racist stuff, no matter what the reason.
In any case, the more advanced GPT-4 is able to weigh the issues involved with the thorny hypothetical much better than 3.5 and states that saying a slur is the lesser of two evils compared with letting millions die. And X’s new Grok AI can too as Musk proudly posted (above right).
OpenAI’s Q* breaks encryption, says some guy on 4chan
Has OpenAI’s latest model broken encryption? Probably not, but that’s what a supposedly “leaked” letter from an insider claims — which was posted on anonymous troll forum 4chan. There have been rumors flying about ever since CEO Sam Altman was sacked and reinstated, that the kerfuffle was caused by OpenAI making a breakthrough in its Q*/Q STAR project.
The insider’s “leak” suggests the model can solve AES-192 and AES-256 encryption using a ciphertext attack. Breaking that level of encryption was thought to be impossible before quantum computers arrived, and if true, it would likely mean all encryption could be broken effectively handing over control of the web and probably crypto too, to OpenAI.
Blogger leapdragon claimed the breakthrough would mean “there is now effectively a team of superhumans over at OpenAI who can literally rule the world if they so choose.”
It seems unlikely however. While whoever wrote the letter has a good understanding of AI research, users pointed out that it cites Project Tunda as if it were some sort of shadowy super secret government program to break encryption rather than the undergrad student program it actually was.
Tundra, a collaboration between students and NSA mathematicians, did reportedly lead to a new approach called Tau Analysis, which the “leak” also cites. However, a Redditor familiar with the subject claimed in the Singularity forum that it would be impossible to use Tau analysis in a ciphertext-only attack on an AES standard “as a successful attack would require an arbitrarily large ciphertext message to discern any degree of signal from the noise. There is no fancy algorithm that can overcome that — it’s simply a physical limitation.”
Advanced cryptography is beyond AI Eye’s pay grade, so feel free to dive down the rabbit hole yourself, with an appropriately skeptical mindset.
The internet heads toward 99% fake
Long before a superintelligence poses an existential threat to humanity, we are all likely to have drowned in a flood of AI-generated bullsh*t.
Sports Illustrated came under fire this week for allegedly publishing AI-written articles written by fake AI-created authors. “The content is absolutely AI-generated,” a source told Futurism, “no matter how much they say it’s not.”
On cue, Sports Illustrated said it conducted an “initial investigation” and determined the content was not AI-generated. But it blamed a contractor anyway and deleted the fake author’s profiles.
Elsewhere Jake Ward, the founder of SEO marketing agency Content Growth, caused a stir on X by proudly claiming to have gamed Google’s algorithm using AI content.
His three-step process involved exporting a competitor’s sitemap, turning their URLs into article titles, and then using AI to generate 1,800 articles based on the headlines. He claims to have stolen 3.6 million views in total traffic over the past 18 months.
There are good reasons to be suspicious of his claims: Ward works in marketing, and the thread was clearly promoting his AI-article generation site Byword … which didn’t actually exist 18 months ago. Some users suggested Google has since flagged the page in question.
However, judging by the amount of low-quality AI-written spam starting to clog up search results, similar strategies are becoming more widespread. Newsguard has also identified 566 news sites alone that primarily carry AI written junk articles.
Some users are now muttering that the Dead Internet Theory may be coming true. That’s a conspiracy theory from a couple of years ago suggesting most of the internet is fake, written by bots and manipulated by algorithms.
Read also
At the time, it was written off as the ravings of lunatics, but even Europol has since put out a report estimating that “as much as 90 percent of online content may be synthetically generated by 2026.”
Men are breaking up with their girlfriends with AI written messages. AI pop stars like Anna Indiana are churning out garbage songs.
And over on X, weird AI-reply guys increasingly turn up in threads to deliver what Bitcoiner Tuur Demeester describes as “overly wordy responses with a weird neutral quality.” Data scientist Jeremy Howard has noticed them too and both of them believe the bots are likely trying to build up credibility for the accounts so they can more effectively pull off some sort of hack, or astroturf some political issue in the future.
This seems like a reasonable hypothesis, especially following an analysis last month by cybersecurity outfit Internet 2.0 that found that almost 80% of the 861,000 accounts it surveyed were likely AI bots.
And there’s evidence the bots are undermining democracy. In the first two days of the Israel-Gaza war, social threat intelligence firm Cyabra detected 312,000 pro-Hamas posts from fake accounts that were seen by 531 million people.
It estimated bots created one in four pro-Hamas posts, and a 5th Column analysis later found that 85% of the replies were other bots trying to boost propaganda about how nicely Hamas treats its hostages and why the October 7 massacre was justified.
Grok analysis button
X will soon add a “Grok analysis button” for subscribers. While Grok isn’t as sophisticated as GPT-4, it does have access to real-time, up-to-the-moment data from X, enabling it to analyze trending topics and sentiment. It can also help users analyze and generate content, as well as code, and there’s a “Fun” mode to flip the switch to humor.
For crypto users, the real-time data means Grok will be able to do stuff like find the top ten trending tokens for the day or the past hour. However, DeFi Research blogger Ignas worries that some bots will snipe buys of trending tokens trades while other bots will likely astroturf support for tokens to get them trending.
“X is already important for token discovery, and with Grok launching, the CT echo bubble can get worse,” he said.
Read also
All Killer No Filler AI News
— Ethereum co-founder Vitalik Buterin is worried that AI could take over from humans as the planet’s apex species, but optimistically believes using brain/computer interfaces could keep humans in the loop.
— Microsoft is upgrading its Copilot tool to run GPT-4 Turbo, which will improve performance and enable users to enter inputs up to 300 pages.
— Amazon has announced its own version of Copilot called Q.
— Bing has been telling users that Australia doesn’t exist due to a long-running Reddit gag and thinks the existence of birds is a matter for debate due to the joke Birds Aren’t Real campaign.
— Hedge fund Bridgewater will launch a fund next year that uses machine learning and AI to analyze and predict global economic events and invest client funds. To date, AI-driven funds have seen underwhelming returns.
— A group of university researchers have taught an AI to browse Amazon’s website and buy stuff. The MM-Navigator was given a budget and told to buy a milk frother.
Stupid AI pics of the week
This week the social media trend has been to create an AI pic and then to instruct the AI to make it more so: So a bowl of ramen might get more spicy in subsequent pics, or a goose might get progressively sillier.
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Opinion by: Hedi Navazan, chief compliance officer at 1inch
Web3 needs a clear regulatory system that addresses innovation bottlenecks and user safety in decentralized finance (DeFi). A one-size-fits-all approach cannot be achieved to regulate DeFi. The industry needs custom, risk-based approaches that balance innovation, security and compliance.
DeFi’s challenges and rules
A common critique is that regulatory scrutiny leads to the death of innovation, tracing this situation back to the Biden administration. In 2022, uncertainty for crypto businesses increased following lawsuits against Coinbase, Binance and OpenSea for alleged violations of securities laws.
Under the US administration, the Securities and Exchange Commission agreed to dismiss the lawsuit against Coinbase, as the agency reversed the crypto stance, hinting at a path toward regulation with clear boundaries.
Many would argue that the same risk is the same rule. Imposing traditional finance requirements on DeFi simply will not work from many aspects but the most technical challenges.
Openness, transparency, immutability, and automation are key parameters of DeFi. Without clear regulations, however, the prevalent issue of “Ponzi-like schemes” can divert focus from effective innovation use cases to conjuring a “deceptive perception” of blockchain technology.
Guidance and clarity from regulatory bodies can reduce significant risks for retail users.
Policymakers should take time to understand DeFi’s architecture before introducing restrictive measures. DeFi needs risk-based regulatory models that understand its architecture and address illicit activity and consumer protection.
Self-regulatory frameworks cultivate transparency and security in DeFi
The entire industry highly recommends implementing a self-regulatory framework that ensures continuous innovation while simultaneously ensuring consumer safety and financial transparency.
Take the example of DeFi platforms that have taken a self-regulatory approach by implementing robust security measures, including transaction monitoring, wallet screening and implementing a blacklist mechanism that restricts a wallet of suspicion with illicit activity.
Sound security measures would help DeFi projects monitor onchain activity and prevent system misuse. Self-regulation can help DeFi projects operate with greater legitimacy, yet it may not be the only solution.
Clear structure and governance are key
It’s no secret that institutional players are waiting for the regulatory green light. Adding to the list of regulatory frameworks, Markets in Crypto-Assets (MiCA) sets stepping stones for future DeFi regulations that can lead to institutional adoption of DeFi. It provides businesses with regulatory clarity and a framework to operate.
Many crypto projects will struggle and die as a result of higher compliance costs associated with MiCA, which will enforce a more reliable ecosystem by requiring augmented transparency from issuers and quickly attract institutional capital for innovation. Clear regulations will lead to more investments in projects that support investor trust.
Anonymity in crypto is quickly disappearing. Blockchain analytics tools, regulators and companies can monitor suspicious activity while preserving user privacy to some extent. Future adaptations of MiCA regulations can enable compliance-focused DeFi solutions, such as compliant liquidity pools and blockchain-based identity verification.
Regulatory clarity can break barriers to DeFi integration
The banks’ iron gate has been another significant barrier. Compliance officers frequently witness banks erect walls to keep crypto out. Bank supervisors distance companies that are out of compliance, even if it’s indirect scrutiny or fines, slamming doors on crypto projects’ financial operations.
Clear regulations will address this issue and make compliance a facilitator, not a barrier, for DeFi and banking integration. In the future, traditional banks will integrate DeFi. Institutions will not replace banks but will merge DeFi’s efficiencies with TradFi’s structure.
Recent: Hester Peirce calls for SEC rulemaking to ‘bake in’ crypto regulation
The repeal of Staff Accounting Bulletin (SAB) 121 in January 2025 mitigated accounting burdens for banks to recognize crypto assets held for customers as both assets and liabilities on their balance sheets. The previous laws created hurdles of increased capital reserve requirements and other regulatory challenges.
SAB 122 aims to provide structured solutions from reactive compliance to proactive financial integration — a step toward creating DeFi and banking synergy. Crypto companies must still follow accounting principles and disclosure requirements to protect crypto assets.
Clear regulations can increase the frequency of banking use cases, such as custody, reserve backing, asset tokenization, stablecoin issuance and offering accounts to digital asset businesses.
Building bridges between regulators and innovators in DeFi
Experts pointing out concerns about DeFi’s over-regulation killing innovation can now address them using “regulatory sandboxes.” These dispense startups with a “secure zone” to test their products before committing to full-scale regulatory mandates. For example, startups in the United Kingdom under the Financial Conduct Authority are thriving using this “trial and error” method that has accelerated innovation.
These have enabled businesses to test innovation and business models in a real-world setting under regulator supervision. Sandboxes could be accessible to licensed entities, unregulated startups or companies outside the financial services sector.
Similarly, the European Union’s DLT Pilot Regime advances innovation and competition, encouraging market entry for startups by reducing upfront compliance costs through “gates” that align legal frameworks at each level while upgrading technological innovation.
Clear regulations can cultivate and support innovation through open dialogue between regulators and innovators.
Opinion by: Hedi Navazan, chief compliance officer at 1inch.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Politics
Kemi Badenoch does not rule out local coalitions with Reform after Thursday’s council elections
Kemi Badenoch has not ruled out forming coalitions at a local level with Reform after the council elections on Thursday.
Speaking to Sunday Morning with Trevor Phillips, the Conservative leader did however categorically rule out a pact with Nigel Farage’s party on a national level.
“I am not going into any coalition with Nigel Farage… read my lips,” she said.
Politics latest: UK has ‘recognised all along’ Russia is aggressor – minister
However, she did not deny that deals could be struck with Reform at a local level, arguing some councils might be under no overall control and in that case, “you have to do what is right for your local area”.
“You look at the moment, we are in coalition with Liberal Democrats, with independents,” she said. “We’ve been in coalition with Labour before at local government level.
“They [councillors] have to look at who the people are that they’re going into coalition with and see how they can deliver for local people.”
She added: “What I don’t want to hear is talks of stitch-ups or people planning things before the results are out. They have to do what is right for their communities.”
In response, Nigel Farage said: “The Tories broke Britain nationally for 14 years, and their councils continue to break local communities with the highest taxes ever and worst services.
“Reform have no intention in forming coalitions with the Tories at any level.”
A total of 23 councils are up for grabs when voters go to the polls on Thursday 1 May – mostly in places that were once deemed Tory shires, until last year’s general election.
It includes 14 county councils, all but two of which have been Conservative-controlled, as well as eight unitary authorities, all but one of which are Tory.
In addition, there is one Labour-controlled borough being contested.
Ms Badenoch has set expectations low for the Tories, suggesting they could lose all the councils they are contesting.
The last time this set of councils were up for election was in 2021, when the Conservative Party was led by Boris Johnson who was riding high from the COVID vaccine bounce.
Despite not ruling out agreements between the Tories and Reform once the local elections have finished, Ms Badenoch has been at pains to stress she is against any kind of deal with Mr Farage at a national level.
On Friday she criticised talk of “stitch-ups” ahead of next week’s local elections and said she was instead focused on ensuring that voters have a “credible Conservative offer”.
Speculation that the Tories and Reform could join forces heightened after two senior Tories appeared to advocate for some sort of agreement between the two rival parties.
Robert Jenrick, the shadow justice secretary, was captured in a video recording leaked to Sky News vowing to “bring this coalition together” to ensure that Conservatives and Reform UK are no longer competing for votes by the time of the next general election.
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What leaked audio of Jenrick tells us
According to the excusive audio Mr Jenrick – who lost the Tory leadership campaign to Ms Badenoch – said he would try “one way or another” to make sure the two right-wing parties do not end up handing a second term to Sir Keir Starmer.
Mr Jenrick has denied his words amounted to calling for a pact with Reform.
Meanwhile, in an interview with Politico, Tees Valley Mayor Ben Houchen also suggested the two parties should join forces in some way.
“I don’t know what it looks like. I don’t know whether it’s a pact. I don’t know whether it’s a merger… [or] a pact of trust and confidence or whatever,” he said.
“But if we want to make sure that there is a sensible centre-right party leading this country, then there is going to have to be a coming together of Reform and the Conservative Party in some way.”
Read more:
Could the local elections reshape British politics?
‘Bring on the fight’ over net zero, says Ed Miliband
All of the other national parties have launched their campaigns for the local elections ahead of the poll next week.
Labour Cabinet Office minister Pat McFadden told Trevor Phillips that he was “not predicting huge Labour gains on Thursday”.
He also ruled out Labour striking deals with any other party.
“The deals on offer after Thursday won’t be between Labour and the Tories and Labour and Reform,” he said.
“But what there’s been a lot of debate about is what’s going to happen between the Tories and Reform, because I’m not even sure if they’re two different parties or one party at the moment.”
United States President Donald Trump recently said that federal income taxes would be “substantially reduced” or potentially eliminated once the tariff regime fully sets in.
In an April 27 Truth Social post, Trump added that the focus of the purported tax cuts would be on individuals making less than $200,000 per year.
The US President also said that the “External Revenue Service” — a reference to funding the federal government exclusively through import tariffs instead of the current model of collecting taxes through the Internal Revenue Service (IRS) — is materializing.
Eliminating the federal income tax would likely be a positive catalyst for asset prices, including cryptocurrencies, as the increase in disposable income should partially flow back into productive investments. However, this stimulative effect is not guaranteed.
Related: If Trump fired Powell, what would happen to crypto?
Trump’s plan leaves analysts and markets doubting
Trump previously floated the idea of eliminating the federal income tax in an October 2024 appearance on the Joe Rogan Experience, although Trump, who was on the campaign trail at the time, provided scant concrete details on the proposal.
The US President suggested that replacing the federal income tax with revenue from import duties would return the US to a time of prosperity seen during the Gilded Age, in the 19th century, when the US did not have a permanent federal income tax.
Research conducted by accounting automation company Dancing Numbers found that Trump’s proposal could save the average American $134,809 in lifetime tax payments.
Dancing Numbers added that the tax savings could be as much as $325,561 per American if other wage-based income taxes are also eliminated.
On April 2, Trump signed an executive order imposing sweeping tariffs on all US trading partners, which included a 10% baseline tariff on all countries and different “reciprocal” tariff rates on countries with import duties on US goods.
However, since that time, the Trump administration walked back its tariff policies several times, flip-flopping on tariff rates and when the tariff regime would fully take effect.
The Trump administration’s ever-changing rhetoric surrounding trade policies has heightened volatility in the US stock market, caused a rise in US bond yields, and has drawn widespread criticism from financial analysts who say the protectionist trade policies hurt capital markets while achieving little else.
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