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Italy fines OpenAI 15 million euros over privacy rules breach

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Italy fines OpenAI 15 million euros over privacy rules breach

Italy’s privacy watchdog 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 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.

The Garante said it 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 had no immediate comment on Friday. It has previously said it believes its practices are aligned with the European Union’s privacy laws.

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

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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 algorithms.

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OpenAI, SoftBank each commit 19bn dollars to Stargate AI data center

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OpenAI, SoftBank each commit 19bn dollars to Stargate AI data center

OpenAI and Japanese conglomerate SoftBank (9984.T) will each commit $19 billion to fund Stargate, a joint venture to develop data centers for artificial intelligence in the U.S., the Information reported on Wednesday.

The ChatGPT maker will hold a 40% interest in Stargate, and would act as an extension of OpenAI, the report said, citing OpenAI CEO Sam Altman speaking to colleagues. His comments imply SoftBank would also have a 40% interest, the report added.

OpenAI and SoftBank did not immediately respond to Reuters’ requests for comment.

On Tuesday, U.S. President Donald Trump announced that OpenAI, SoftBank Group and Oracle (ORCL.N) will unveil Stargate and invest $500 billion over the next four years to help the United States stay ahead of China and other rivals in the global AI race.

Stargate will initially deploy $100 billion and the rest of the funding is expected over the next four years. The project is being led by SoftBank and OpenAI.

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Taiwan’s HTC to sell part of XR unit to Google for 250mn dollars

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Taiwan's HTC to sell part of XR unit to Google for 250mn dollars

Taiwan’s HTC (2498.TW) said on Thursday it will sell part of its unit for extended reality (XR) headsets and glasses to Google (GOOGL.O) for $250 million and transfer some of its employees to the U.S. company.

The transaction is expected to close in the first quarter of this year, HTC said.

The two companies will also explore further collaboration opportunities, HTC added.

Google said in a separate statement that the deal will accelerate the development of the Android XR platform and strengthen the ecosystem for headsets and glasses.

Lu Chia-te, HTC vice president and general counsel, told reporters the company had granted its intellectual property rights to Google as a non-exclusive license.

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“Therefore, this is not a buyout nor an exclusive licence. In the future, HTC will still retain the ability to use, utilise, and even further develop it without any restrictions,” he said.

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Microsoft’s LinkedIn sued for disclosing customer information to train AI models

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Microsoft's LinkedIn sued for disclosing customer information to train AI models

Microsoft’s (MSFT.O) LinkedIn has been sued by Premium customers who said the business-focused social media platform disclosed their private messages to third parties without permission to train generative artificial intelligence models.

According to a proposed class action filed on Tuesday night on behalf of millions of LinkedIn Premium customers, LinkedIn quietly introduced a privacy setting last August that let users enable or disable the sharing of their personal data.

Customers said LinkedIn then discreetly updated its privacy policy on Sept. 18 to say data could be used to train AI models, and in a “frequently asked questions” hyperlink said opting out “does not affect training that has already taken place.”

This attempt to “cover its tracks” suggests LinkedIn was fully aware it violated customers’ privacy and its promise to use personal data only to support and improve its platform, in order to minimize public scrutiny and legal fallout, the complaint said.

The lawsuit was filed in the San Jose, California, federal court on behalf of LinkedIn Premium customers who sent or received InMail messages, and whose private information was disclosed to third parties for AI training before Sept. 18.

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It seeks unspecified damages for breach of contract and violations of California’s unfair competition law, and $1,000 per person for violations of the federal Stored Communications Act.

A lawyer for Prince Harry on Wednesday said the Duke of Sussex had reached a settlement with Rupert Murdoch’s news conglomerate.

LinkedIn said in a statement: “These are false claims with no merit.”

A lawyer for the plaintiffs had no immediate additional comment.

The lawsuit was filed several hours after U.S. President Donald Trump announced a joint venture among Microsoft-backed OpenAI, Oracle (ORCL.N) and SoftBank (9984.T), with a potential $500 billion of investment, to build AI infrastructure in the United States.

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