OpenAI Suspends TikTok-Parent ByteDance After It Used GPT To Train Its Own 'ChatGPT Of China'
Portfolio Pulse from Rounak Jain
OpenAI has suspended ByteDance, the parent company of TikTok, for using GPT to train a competing AI model in China, which violates the developer licenses of both OpenAI and Microsoft Corp. ByteDance admitted to using GPT for non-China markets and has developed its own model, Doubao, for China. ByteDance claims to be developing a model more powerful than Alphabet Inc.'s Google Gemini. OpenAI is investigating ByteDance's use of their API and may terminate their account if violations are confirmed.
December 16, 2023 | 3:42 am
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NEUTRAL IMPACT
Alphabet Inc.'s Google Gemini AI model was mentioned as a benchmark that ByteDance claims to surpass with its upcoming AI model.
While the news puts Alphabet's AI capabilities in the spotlight, the actual impact on the stock is uncertain as it depends on the success of ByteDance's claims and the market's reaction to competitive developments.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Microsoft's developer license was violated by ByteDance, which used GPT to train a competing AI model. OpenAI, which Microsoft has invested in, has suspended ByteDance's account pending an investigation.
The violation of Microsoft's developer license by ByteDance and the subsequent suspension by OpenAI could negatively impact Microsoft's reputation in AI and cloud services. This may lead to a short-term negative sentiment among investors.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80