Meta Unveils More Cautious Approach to ChatGPT Frenzy

A logo of Meta Platforms Inc. is seen at its booth, at the Viva Technology conference dedicated to innovation and startups, at Porte de Versailles exhibition center in Paris, France June 17, 2022. REUTERS/Benoit Tessier
A logo of Meta Platforms Inc. is seen at its booth, at the Viva Technology conference dedicated to innovation and startups, at Porte de Versailles exhibition center in Paris, France June 17, 2022. REUTERS/Benoit Tessier
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Meta Unveils More Cautious Approach to ChatGPT Frenzy

A logo of Meta Platforms Inc. is seen at its booth, at the Viva Technology conference dedicated to innovation and startups, at Porte de Versailles exhibition center in Paris, France June 17, 2022. REUTERS/Benoit Tessier
A logo of Meta Platforms Inc. is seen at its booth, at the Viva Technology conference dedicated to innovation and startups, at Porte de Versailles exhibition center in Paris, France June 17, 2022. REUTERS/Benoit Tessier

Facebook-owner Meta on Friday unveiled its own version of the artificial intelligence behind apps such as ChatGPT, saying it would give access to researchers to find fixes to the technology's potential dangers.

Meta described its own AI, called LLaMA, as a "smaller, more performant" model designed to "help researchers advance their work," in what could be seen as veiled criticism of Microsoft's decision to release the technology widely, while keeping the programming code secret.

Microsoft-backed ChatGPT has taken the world by storm with its ability to generate finely crafted texts such as essays or poems in just seconds using technology known as large language models (or LLM).

LLM is part of a field known as generative AI that also includes the capacity to execute images, designs or programming code almost instantaneously upon a simple request.

Usually the more staid actor in big tech, Microsoft has deepened its partnership with OpenAI, the creator of ChatGPT, and earlier this month announced the technology would be integrated into its Bing search engine as well as the Edge browser.

Google, seeing a sudden threat to the dominance of its search engine, quickly announced it would release its own language AI, known as Bard, shortly, AFP reported.

But reports of disturbing exchanges with Microsoft's Bing chatbot -- including it issuing threats and speaking of desires to steal nuclear code or lure one user from his wife -- went viral, raising alarm bells that the technology was not ready.

Meta said these problems, sometimes called hallucinations, could be better remedied if researchers had improved access to the expensive technology.

Thorough research "remains limited because of the resources that are required to train and run such large models," the company said.

This was hindering efforts "to improve their robustness and mitigate known issues, such as bias, toxicity, and the potential for generating misinformation," Meta said.

OpenAI and Microsoft strictly limit access to the technology behind their chatbots, drawing criticism that they are choosing potential profits over improving the technology more quickly for society.

"By sharing the code for LLaMA, other researchers can more easily test new approaches to limiting or eliminating these problems," Meta said.



Toyota Industries Sinks after Parent's Takeover Bid Misses Expectations

A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo
A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo
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Toyota Industries Sinks after Parent's Takeover Bid Misses Expectations

A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo
A Toyota Logo is seen at a Toyota dealership in Zaventem, Belgium, November 25, 2022. REUTERS/Johanna Geron/File Photo

Investors gave a thumbs-down to Toyota Motor's $33 billion take-private offer for Toyota Industries on Wednesday, highlighting concerns minority shareholders would be short-changed in a landmark restructuring for Japan Inc.

Shares of Toyota Industries, a key Toyota Group company, fell 12% in Tokyo trade a day after the world's top-selling automaker unveiled plans to take the subsidiary private. The complex 4.7 trillion yen ($33 billion) transaction includes an offer price of 16,300 yen a share for Toyota Industries.

While that represents a 23% premium to the price before word of the deal broke in April, it is well below the 18,400 yen price before the offer was formally announced. Shares closed at 16,205 yen on Wednesday.

"To be clear, we welcome the attempt to clear up the parent-subsidiary governance issue. We don't like the price," said David Mitchinson, founding partner and chief investment officer of Zennor Asset Management, which owns Toyota Industries shares, Reuters reported.

When asked if Zennor would tender its shares, he said: "We will have to see how this develops as there seems strong opposition from many shareholders".

The deal will see a number of Toyota Group companies unwind cross-shareholdings, something Japanese regulators and the Tokyo Stock Exchange have long urged for better governance.

Toyota Industries has been one of Japan's most prominent examples of so-called "parent-child listings", where both a parent company and its subsidiary are listed. Governance experts say such cases are inherently unfair to minority shareholders and a drag on corporate value.

Still, the transaction comes up short in terms of corporate governance, as it both undervalues Toyota Industries' substantial real estate holdings and strengthens the founding Toyoda family's control over the broader group, market participants said.

"There's huge hidden asset value in the land and other holdings at Toyota Industries. And the price should have been much higher," Nicholas Benes, a governance expert and the CEO of the Board Training Institute of Japan, told a briefing on Wednesday.

The deal was a "prime example" of a squeeze-out of minority shareholders at an unfair price by founders and management, he said.

In a statement, Toyota Motor said the interests of Toyota Industries' minority shareholders were being considered. "Taking into account shareholder returns and the tax benefits for Toyota Industries, we have adopted a share buyback scheme" through a tender offer, it said.

It said the deal was part of a broader realignment of capital structures within the Toyota Group as it moved toward becoming a mobility company.

A new holding company will be set up for the deal. Group real estate company Toyota Fudosan will invest 180 billion yen, while Akio Toyoda, Toyota Motor's chairman, will invest 1 billion yen. Toyota Motor will invest 700 billion yen in non-voting preferred shares.

Media reports had indicated the tender offer would be around $42 billion, a substantial premium to the actual offer.

Toyota Motor and group companies Aisin, Denso and Toyota Tsusho will all sell their shares in Toyota Industries and acquire their own shares now held by it.

Toyota owned about 24% of Toyota Industries as of September last year, while Toyota Industries held around 9% of the automaker and more than 5% of Denso.

Toyota Industries, formerly Toyoda Automatic Loom Works, was founded in 1926 to make automatic looms. An automotive division within the company was set up and later spun off as Toyota Motor.