UK kicks off review into training AI models on copyrighted content

Published

12 months ago

December 17, 2024

admin

On Dec. 9, OpenAI made its artificial intelligence video generation model Sora publicly available in the U.S. and other countries.

Cfoto | Future Publishing | Getty Images

The U.K. is drawing up measures to regulate the use of copyrighted content by tech companies to train their artificial intelligence models.

The British government on Tuesday kicked off a consultation which aims to increase clarity for both the creative industries and AI developers when it comes to both how intellectual property is obtained and then used by AI firms for training purposes.

Some artists and publishers are unhappy with the way their content is being scraped freely by companies like OpenAI and Google to train their large language models — AI models trained on huge quantities of data to generate humanlike responses.

Large language models are the foundational technology behind today’s generative AI systems, including the likes of OpenAI’s ChatGPT, Google’s Gemini and Anthropic’s Claude.

Last year, The New York Times brought a lawsuit against Microsoft and OpenAI accusing the companies of infringing its copyright and abusing intellectual property to train large language models.

In response, OpenAI disputed the NYT’s allegations, stating that the use of open web data for training AI models should be considered “fair use” and that it provides an “opt-out” for rights holders “because it’s the right thing to do.”

Separately, image distribution platform Getty Images sued another generative AI firm, Stability AI, in the U.K., accusing it of scraping millions of images from its websites without consent to train its Stable Diffusion AI model. Stability AI has disputed the suit, noting that the training and development of its model took place outside the U.K.

Proposals to be considered

First, the consultation will consider making an exception to copyright law for AI training when used in the context of commercial purposes but while still allowing rights holders to reserve their rights so they can control the use of their content.

Second, the consultation will put forward proposed measures to help creators license and be remunerated for the use of their content by AI model makers, as well as give AI developers clarity over what material can be used for training their models.

The government said more work needs to be done by both the creative industries and technology firms to ensure any standards and requirements for rights reservation and transparency are effective, accessible and widely adopted.

The government is also considering proposals that would require AI model makers to be more transparent about their model training datasets and how they’re obtained so that rights holders can understand when and how their content has been used to train AI.

That could prove controversial — technology firms aren’t especially forthcoming when it comes to the data that fuels their coveted algorithms or how they train them up, given the commercial sensitivities involved in revealing those secrets to potential competitors.

Previously, under former Prime Minister Rishi Sunak, the government attempted to agree a voluntary AI copyright code of practice.

AI copyright rules: U.K. versus U.S.

In a recent interview with CNBC, the boss of app development software firm Appian said he thinks the U.K. is well placed to be the “global leader on this issue.”

“The U.K. has put a stake in the ground declaring its prioritization of personal intellectual property rights,” Matt Calkins, Appian’s CEO, told CNBC. He cited 2018’s Data Protection Act as an example of how the U.K. is “closely associated with intellectual property rights.”

The U.K. is also not “subject to the same overwhelming lobbying blitz from domestic AI leaders that the U.S. is,” Calkins added — meaning it might not be as prone to bowing down to pressure from tech giants as politicians stateside.

“In the U.S., anybody who writes a law about AI is going to hear from Amazon, Oracle, Microsoft or Google before that bill even reaches the floor,” Calkins said.

“That’s a powerful force stopping anyone from writing sensible legislation or protecting the rights of individuals whose intellectual property is being taken wholesale by these major AI players.”

The issue of potential copyright infringement by AI firms is becoming more notable as tech firms are moving toward a more “multimodal” form of AI — that is, AI systems that can understand and generate content in the form of images and video as well as text.

Last week, OpenAI made its AI video generation model Sora publicly available in the U.S. and “most countries internationally.” The tool allows a user to type out a desired scene and produce a high-definition video clip.

Technology

Oracle says there have been ‘no delays’ in OpenAI arrangement after stock slide

Published

13 hours ago

December 12, 2025

admin

Oracle says there have been 'no delays' in OpenAI arrangement after stock slide

Oracle CEO Clay Magouyrk appears on a media tour of the Stargate AI data center in Abilene, Texas, on Sept. 23, 2025.

Kyle Grillot | Bloomberg | Getty Images

Oracle on Friday pushed back against a report that said the company will complete data centers for OpenAI, one of its major customers, in 2028, rather than 2027.

The delay is due to a shortage of labor and materials, according to the Friday report from Bloomberg, which cited unnamed people. Oracle shares fell to a session low of $185.98, down 6.5% from Thursday’s close.

“Site selection and delivery timelines were established in close coordination with OpenAI following execution of the agreement and were jointly agreed,” an Oracle spokesperson said in an email to CNBC. “There have been no delays to any sites required to meet our contractual commitments, and all milestones remain on track.”

The Oracle spokesperson did not specify a timeline for turning on cloud computing infrastructure for OpenAI. In September, OpenAI said it had a partnership with Oracle worth more than $300 billion over the next five years.

“We have a good relationship with OpenAI,” Clay Magouyrk, one of Oracle’s two newly appointed CEOs, said at an October analyst meeting.

Doing business with OpenAI is relatively new to 48-year-old Oracle. Historically, Oracle grew through sales of its database software and business applications. Its cloud infrastructure business now contributes over one-fourth of revenue, although Oracle remains a smaller hyperscaler than Amazon, Microsoft and Google.

OpenAI has also made commitments to other companies as it looks to meet expected capacity needs.

In September, Nvidia said it had signed a letter of intent with OpenAI to deploy at least 10 gigawatts of Nvidia equipment for the San Francisco artificial intelligence startup. The first phase of that project is expected in the second half of 2026.

Nvidia and OpenAI said in a September statement that they “look forward to finalizing the details of this new phase of strategic partnership in the coming weeks.”

But no announcement has come yet.

In a November filing, Nvidia said “there is no assurance that we will enter into definitive agreements with respect to the OpenAI opportunity.”

OpenAI has historically relied on Nvidia graphics processing units to operate ChatGPT and other products, and now it’s also looking at designing custom chips in a collaboration with Broadcom.

On Thursday, Broadcom CEO Hock Tan laid out a timeline for the OpenAI work, which was announced in October. Broadcom and OpenAI said they had signed a term sheet.

“It’s more like 2027, 2028, 2029, 10 gigawatts, that was the OpenAI discussion,” Tan said on Broadcom’s earnings call. “And that’s, I call it, an agreement, an alignment of where we’re headed with respect to a very respected and valued customer, OpenAI. But we do not expect much in 2026.”

OpenAI declined to comment.

WATCH: Oracle says there have been ‘no delays’ in OpenAI arrangement after stock slide

Technology

AI order from Trump might be ‘illegal,’ Democrats and consumer advocacy groups claim

Published

13 hours ago

December 12, 2025

admin

AI order from Trump might be ‘illegal,’ Democrats and consumer advocacy groups claim

“This is the wrong approach — and most likely illegal,” Sen. Amy Klobuchar, D-Minn., said in a post on X Thursday.

“We need a strong federal safety standard, but we should not remove the few protections Americans currently have from the downsides of AI,” Klobuchar said.

Trump’s executive order directs Attorney General Pam Bondi to create a task force to challenge state laws regulating AI.

The Commerce Department was also directed to identify “onerous” state regulations aimed at AI.

The order is a win for tech companies such as OpenAI and Google and the venture firm Andreessen Horowitz, which have all lobbied against state regulations they view as burdensome.

It follows a push by some Republicans in Congress to impose a moratorium on state AI laws. A recent plan to tack on that moratorium to the National Defense Authorization Act was scuttled.

Collin McCune, head of government affairs at Andreessen Horowitz, celebrated Trump’s order, calling it “an important first step” to boost American competition and innovation. But McCune urged Congress to codify a national AI framework.

“States have an important role in addressing harms and protecting people, but they can’t provide the long-term clarity or national direction that only Congress can deliver,” McCune said in a statement.

Sriram Krishnan, a White House AI advisor and former general partner at Andreessen Horowitz, during an interview Friday on CNBC’s “Squawk Box,” said that Trump is was looking to partner with Congress to pass such legislation.

“The White House is now taking a firm stance where we want to push back on ‘doomer’ laws that exist in a bunch of states around the country,” Krishnan said.

He also said that the goal of the executive order is to give the White House tools to go after state laws that it believes make America less competitive, such as recently passed legislation in Democratic-led states like California and Colorado.

The White House will not use the executive order to target state laws that protect the safety of children, Krishnan said.

Robert Weissman, co-president of the consumer advocacy group Public Citizen, called Trump’s order “mostly bluster” and said the president “cannot unilaterally preempt state law.”

“We expect the EO to be challenged in court and defeated,” Weissman said in a statement. “In the meantime, states should continue their efforts to protect their residents from the mounting dangers of unregulated AI.”

Weissman said about the order, “This reward to Big Tech is a disgraceful invitation to reckless behavior
by the world’s largest corporations and a complete override of the federalist principles that Trump and MAGA claim to venerate.”

In the short term, the order could affect a handful of states that have already passed legislation targeting AI. The order says that states whose laws are considered onerous could lose federal funding.

One Colorado law, set to take effect in June, will require AI developers to protect consumers from reasonably foreseeable risks of algorithmic discrimination.

Some say Trump’s order will have no real impact on that law or other state regulations.

“I’m pretty much ignoring it, because an executive order cannot tell a state what to do,” said Colorado state Rep. Brianna Titone, a Democrat who co-sponsored the anti-discrimination law.

In California, Gov. Gavin Newsom recently signed a law that, starting in January, will require major AI companies to publicly disclose their safety protocols.

That law’s author, state Sen. Scott Wiener, said that Trump’s stated goal of having the United States dominate the AI sector is undercut by his recent moves.

“Of course, he just authorized chip sales to China & Saudi Arabia: the exact opposite of ensuring U.S. dominance,” Wiener wrote in an X post on Thursday night. The Bay Area Democrat is seeking to succeed Speaker-emerita Nancy Pelosi in the U.S. House of Representatives.

Trump on Monday said he will Nvidia to sell its advanced H200 chips to “approved customers” in China, provided that U.S. gets a 25% cut of revenues.

Technology

Coinbase to soon unveil prediction markets powered by Kalshi, source says

Published

14 hours ago

December 12, 2025

admin

Coinbase to soon unveil prediction markets powered by Kalshi, source says

Feature China | Future Publishing | Getty Images

Coinbase is gearing up to launch an in-house prediction market, powered by Kalshi, a source close to the matter told CNBC — a strategic play to expand the number of asset classes available on the cryptocurrency exchange at a time some investors are shying away from digital assets.

The source said Coinbase and Kalshi will “soon” formally announce the prediction market, with news on the matter potentially coming as early as next week.

Rumblings of the prediction market launch have swirled for nearly a month. An alleged screenshot of Coinbase’s prediction markets dashboard shared by Silicon Valley researcher Jane Manchun Wong in an X post dated Nov. 18 offered some clues about the new product.

The Information first reported on Nov. 19 that Coinbase planned to launch prediction markets powered by Kalshi, adding that the exchange would unveil the new product at its “Coinbase System Update” event on Dec. 17. Bloomberg published a similar report on Thursday, citing a source familiar with the matter, adding that Coinbase would also announce a tokenized stock offering at the showcase.

Coinbase declined to confirm the reports to CNBC, but said to tune into its event next week. The firm did not comment on a timeline for when its prediction markets would go live for its users.

Coinbase’s upcoming product launches underscore its push to refashion itself into an “everything exchange,” or a one-stop shop for trading all kinds of assets, including crypto tokens, tokenized stocks and event contracts. In May, CEO Brian Armstrong articulated that “everything exchange” vision to investors, saying Coinbase would aim to become a top financial services app within the next decade.

The trading platform is setting its sights on that goal as it faces intensifying competition from rivals such as Robinhood, Gemini and Kraken. All three have launched tokenized equity offerings to users outside of the U.S. within the past year, in addition to exploring prediction markets to varying extents.

Coinbase’s moves to expand the financial instruments available to its users also come as investor sentiment on digital assets cools. A series of liquidations of highly leveraged digital asset positions in mid-October triggered several pullbacks in the crypto market, prompting investors to rotate out of tokens and into gold and other safe-have assets.

Bitcoin fell as low as around $85,000 in early December, hitting its lowest level since last March. The token was last trading at $89,951, down 23% in the past three months. Coinbase has also fallen more than 16% over the past three months.

The deal also underscores U.S.-based prediction markets operator Kalshi’s push to embed its event contracts into various brokerages, widening its reach as the prediction markets space becomes increasingly competitive.

This year, Kalshi embedded several of its prediction markets into trading platform Robinhood, as part of a non-exclusive partnership between the companies. Kalshi has also engaged in talks with several other major brokerages, including those in the crypto industry, with the aim of closing more deals like the ones it has struck with Robinhood and now Coinbase, a source familiar with the matter told CNBC.