Italy Fines OpenAI over ChatGPT Privacy Rules Breach

The Italian watchdog also ordered OpenAI to launch a six-month campaign on Italian media to raise public awareness about how ChatGPT works - Reuters
The Italian watchdog also ordered OpenAI to launch a six-month campaign on Italian media to raise public awareness about how ChatGPT works - Reuters
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Italy Fines OpenAI over ChatGPT Privacy Rules Breach

The Italian watchdog also ordered OpenAI to launch a six-month campaign on Italian media to raise public awareness about how ChatGPT works - Reuters
The Italian watchdog also ordered OpenAI to launch a six-month campaign on Italian media to raise public awareness about how ChatGPT works - Reuters

Italy's data protection agency said on Friday it fined ChatGPT maker OpenAI 15 million euros ($15.58 million) after closing an investigation into use of personal data by the generative artificial intelligence application.

The fine comes after the authority found OpenAI processed users' personal data to "train ChatGPT without having an adequate legal basis and violated the principle of transparency and the related information obligations towards users".

OpenAI said the decision was "disproportionate" and that the company will file an appeal against it.

The investigation, which started in 2023, also concluded that the US-based company did not have an adequate age verification system in place to prevent children under the age of 13 from being exposed to inappropriate AI-generated content, the authority said, Reuters reported.

The Italian watchdog also ordered OpenAI to launch a six-month campaign on Italian media to raise public awareness about how ChatGPT works, particularly as regards to data collection of users and non-users to train algorithms.

Italy's authority, known as Garante, is one of the European Union's most proactive regulators in assessing AI platform compliance with the bloc's data privacy regime.

Last year it briefly banned the use of ChatGPT in Italy over alleged breaches of EU privacy rules.

The service was reactivated after Microsoft-backed OpenAI addressed issues concerning, among other things, the right of users to refuse consent for the use of personal data to train the algorithms.

"They've since recognised our industry-leading approach to protecting privacy in AI, yet this fine is nearly twenty times the revenue we made in Italy during the relevant period," OpenAI said, adding the Garante's approach "undermines Italy's AI ambitions".

The regulator said the size of its 15-million-euro fine was calculated taking into account OpenAI's "cooperative stance", suggesting the fine could have been even bigger.

Under the EU's General Data Protection Regulation (GDPR) introduced in 2018, any company found to have broken rules faces fines of up to 20 million euros or 4% of its global turnover.



Huawei Shows off AI Computing System to Rival Nvidia’s Top Product

An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. (Reuters)
An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. (Reuters)
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Huawei Shows off AI Computing System to Rival Nvidia’s Top Product

An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. (Reuters)
An AI (Artificial Intelligence) sign is seen at the World Artificial Intelligence Conference (WAIC) in Shanghai, China July 6, 2023. (Reuters)

China's Huawei Technologies showed off an AI computing system on Saturday that one industry expert has said rivals Nvidia's most advanced offering, as the Chinese technology giant seeks to capture market share in the country's growing artificial intelligence sector.

The CloudMatrix 384 system made its first public debut at the World Artificial Intelligence Conference (WAIC), a three-day event in Shanghai where companies showcase their latest AI innovations, drawing a large crowd to the company's booth.

The system has drawn close attention from the global AI community since Huawei first announced it in April. Industry analysts view it as a direct competitor to Nvidia's GB200 NVL72, the US chipmaker's most advanced system-level product currently available in the market.

Dylan Patel, founder of semiconductor research group SemiAnalysis, said in an April article that Huawei now had AI system capabilities that could beat Nvidia.

Huawei staff at its WAIC booth declined to comment when asked to introduce the CloudMatrix 384 system. A spokesperson for Huawei did not respond to questions.

Huawei has become widely regarded as China's most promising domestic supplier of chips essential for AI development, even though the company faces US export restrictions.

Nvidia CEO Jensen Huang told Bloomberg in May that Huawei had been "moving quite fast" and named the CloudMatrix as an example.

The CloudMatrix 384 incorporates 384 of Huawei's latest 910C chips and outperforms Nvidia's GB200 NVL72 on some metrics, which uses 72 B200 chips, according to SemiAnalysis.

The performance stems from Huawei's system design capabilities, which compensate for weaker individual chip performance through the use of more chips and system-level innovations, SemiAnalysis said.

Huawei says the system uses "supernode" architecture that allows the chips to interconnect at super-high speeds and in June, Huawei Cloud CEO Zhang Pingan said the CloudMatrix 384 system was operational on Huawei's cloud platform.