Sam Altman Says OpenAI Will Leave the EU If There's Any Real AI Regulation
gizmodo.com
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Isn't that what any normal company does? Comply until it's impossible to operate legally? They can choose between ceasing to operate or getting arrested.
If the AI regulations are reasonable and AI companies can't operate, the technology just isn't ready for wide-spread adoption yet. See also: Tesla's Autopilot.
I have to wonder what the investors over at Microsoft are thinking right now. I doubt they'll be happy with threats of leaving lucrative markets from a company so deeply integrated into their product suite.
but tbh, i dont see what the regulations would be. I am a fan of no regulation unless actual harm has been shown first.
I used to be, but some of the modern crop of CEOs has taken the wind out of that. They have done tremendous damage, very quickly, and the regulation has been unable to keep up, until severe damage has already been done.
Once the bullet has left the gun, it can't be stuffed back in.
Airbnb is also a boon for travellers looking to stay cheap, and a boon for property owners to cash in on underutilized real estate.
The "harm" that has been cited to have been caused by them are only the incumbents that do not move with the market or times.
Glance at it and she looks like a renter or typical youth of a city with tourism but poor purchasing power/ social mobility, but stare a bit longer and relax your focus and she becomes an incumbent who doesn't move with the market or times
Now that the harm is done (speculation on housing priced out teachers and low income workers, old, niche stores turned into tourist traps), we finally have regulation. A bit too late. But at least the mayor is adding 20k housing units (+20%), driving the price down and making speculators eat a fat loss.
Uber was regulated much faster so it's impact have mostly been positive, unless you've been raped by a predator as they used to not check their drivers.
You have to regulate ahead of time, even if it's soft and toothless in the beginning. Check the EU proposal to regulate AI, it seems really, really soft.
All of those examples are primarily damage done pre 80s
The "organic" social stuff that helped Trump 2016 (leaked Democrat emails, etc) had nothing to do with privacy or ads.
More than 87M people were profiled, and more than 3M people were targeted by Cambridge Analytica in 11 key states during the election to feed them the content that would swing their indecision towards Trump based on their psychological profile and preferences.
Trump paid for that, and Michigan and Pennsylvania and New Hampshire were all very close.
To boldly state that CA had no impact on US elections, Brexit and I don't remember which South American election when the people involved in it literally sold it and used previous results as evidence seems a bit of a stretch.
I might be wrong, but there's no clear way of knowing unless votes were not anonymous.
The CA thing is the same level of stupid. The targeting would just be senselessly bad based on CA's methodology.
It would take about twenty seconds with Google, to come up with hundreds of examples. Some, better than others.
Basically, if there's no rule saying I can't do it, then I should do it, until rules are developed to stop it; regardless of the morality or danger.
I suspect that one way to make people more careful, is to make future rules and regulations retroactive.
For example, if I had developed a fintech product that was a legal ponzi scheme, or a downloader that is a legal way of accessing copyrighted material, because of loopholes, and those loopholes are closed, after the fact (happens all the time), then, if the new remedies can be applied to the "legal" implementations that were in effect before the closing of the loopholes, I suspect that it would make the "loopholer" a wee bit more cautious.
But that won't happen. There's way too many ways that it could go off the rails.
So people will keep on bending, folding, spindling, and mutilating, until they are stopped by a steel door, slamming down in front of them.
I strongly suspect that a lot of companies are set up to harvest as much as possible, before the door slams, so they can reap the benefits.
and there's moral implications about applying new rules retroactively. What you do today that is completely legal, should not be punished tomorrow even if it was decided in the future that it is illegal. Otherwise, there would be a chilling effect on innovation.
Suddenly, we owe ten years of back taxes, with penalties.
It’s not feasible to do this.
But there are plenty if people –many on this very forum, I suspect– that know what they are doing is highly immoral, and will likely get shut down, but … MONEY … so they do it for as long as they can gt away with it.
it's because the gov't is not incentivized properly. I think they should be pressured to keep up. This isn't an argument to "pre-regulate", because incompetence at the gov't can be fixed!
> Once the bullet has left the gun, it can't be stuffed back in.
But once many people start shooting guns willy-nilly, you start regulating guns. But not before.
It's not about _not_ having regulations. It's about not introducing new regulations without demonstrating harm first.
The current crop of regulations, i argue, is sufficient, and no new ones introduced for AI.
… no regulation unless actual harm has been shown first.
What?It is the duty of politics to protect the citizens and environment - also proactively. From reckless CEOs, greedy shareholders and lawyers which claim that it wasn’t strictly forbidden to cause harm.
Politics isn’t doing always right. The Cookie-Directive tried to make misuse of Cookies illegal. Actually it made web browsing horrible and created further questionable businesses like “cookie cloud storage providers aggregating cookies of several websites”.
On the other hand this people require ABS and ESP in cars. Banned Teslas “Autopilot” and had smart ideas like type certification for aircraft’s. And then they forbid stuff which can cause cancer…that was smart! What comes next? Acting against monopolies and oligopolies like Microsoft and Apple?
You have to first prove that it is not going to do more harm than good. And without knowing what sort of harm AI's do - it's all theoretical at the moment - any regulation is merely speculating a harm, and the cost of prevention might be high (or stifling).
ABS and ESP in cars came _after_ harm was shown. And so is emission controls, and crash-related safety measures and testing/certification.
> And then they forbid stuff which can cause cancer…that was smart!
which makes sense, as those stuff has been shown to cause cancer.
In other words, harm has to be shown, rather than speculated, before regulation is desirable.
The question then is more: regulate those within the particular area of use or have something that generally aims to regulate risky use.
Also proactively, indeed, but usually rather reactive. Why bother with say cops on the street to check for weapons when civilians tend to not carry them there? Proactive is rather: seemingly proactive, like AI is seemingly intelligent. In reality 101, its reactive, but the quality of the reactivity matters (speed, thoroughness, accuracy, transparency, cost, etc). Some of these qualitative measures are at odds with each other.
> And then they forbid stuff which can cause cancer…that was smart!
Tobacco is regulated; not forbidden.
> He called for some regulation “between the traditional European approach and the traditional U.S. approach,” whatever that means.
And you phrase it:
> I am a fan of no regulation unless actual harm has been shown first.
This is the "traditional US approach". As has been shown far too often, by the time actual harm has been shown, it is far too late. Especially as large industries like to use their economic clout to pervert things with propaganda like "oh, the science isn't settled yet".
The "traditional US approach" is why cigarettes were sold for 100 years after they had been shown to cause cancer along with other major medical issues. And why cigarettes are still sold.
And another HN story from today discusses this exact issue: https://news.ycombinator.com/item?id=36067401
The European approach is "show us that it is safe before you put this stuff on the market". They use the 'Precautionary Principle'.
> The precautionary principle is the idea that when there is the chance of negative consequences from an industrial practice, that the burden of proof lies with the inventors/implementers of the process to prove that there are no negative (ecological and environmental) consequences of it. The principle is often cited by "technological conservatives" and/or environmental activists when there is a perceived lack of evidence showing that a technology is absolutely safe.
https://rationalwiki.org/wiki/Precautionary_principle
https://en.wikipedia.org/wiki/Precautionary_principle
Is AI "safe enough" to be sold/marketed to people? Many people say it isn't. The people who tend to get into executive positions at companies have a visible lack of concern about anything other than their personal wealth. So while AI might be "safe enough", the people who tend to get to the top will make even the safest things unsafe.
And not to mention that such regulations (on AI) might not be adhered to by countries such as China, which would make it all but moot - except it causes harm to western companies looking to profit.
A cautious approach is valid only if you have unlimited budget and you are not in a natural darwinian selection process of elimination.
Conversely if the AI system is reasonable, but the regulations are making them illegal, then the blame is on the regulations.
There is a trade-off between potential benefits and potential harm, and it's not immediately clear to me, who is in the better position to find it: the AI companies or the legislators. The first are biased because they want to sell their products, but the second have worse understanding of the technology and are IMO on average too over-protective.
Since a company is usually harmed by increased regulation their opinion is biased.
But there's no oppposite to this. Governments don't benefit if companies leave and in fact they lose out. This also includes the population (jobs etc) that means the opinion of the government isn't biased.
I know this is the prevailing point of view in business, but is it actually true? How many bank failures would have been avoided if US banking regulations hadn't been slackened so much?
how many guns would get sold if the government didn't created laws that protects the industry from liability.
or section 230 which shields websites from the rent seeking of the cable companies but allows them to rent seek advertisers.
Most of the failures after 2000 would have been prevented. All of the 2008 financial crisis was caused by removing regulation.
Prior to Commodity Futures Modernization Act of 2000 [0], several states ruled that credit default swaps were insurance and thus regulated CDS as insurance. Some states ruled that CDS were gambling and regulated it as gambling. The CFMA basically said "credit default swaps are now a federal issue and it will be regulated at the federal level" and set up a poorly funded agency that had no teeth until after the bailouts in 2008.
During the 1920s, many banks got involved in both commercial banking (taking deposits and making loans) as well as investment banking (arranging IPOs). In 1933, the Glass-Steagal Act [1] said that banks may do one or the other, but cannot do both. In 1999, Glass-Steagal was later repealed by GLBA [2] as CitiCorp was doing both (due to mergers) while daring the regulators to do anything about it.
0 - https://en.wikipedia.org/wiki/Commodity_Futures_Modernizatio...
1 - https://en.wikipedia.org/wiki/1933_Banking_Act
2 - https://en.wikipedia.org/wiki/Gramm%E2%80%93Leach%E2%80%93Bl...
I am sorry if the tone comes across as snarky. Not my intention. Genuinely curious.
If everyone uses ChatSkyNet for programming (or even ChatGPT-4), but EU is not allowed, EU will simply lose its competitiveness in creating products.
it... might?
it possibly existing in the future is not a good reason to lay down and just surrender control of world governance to ChatGPT today
The problem is you're assuming the people writing the regulations are perfect. It's not that bad AI should exist, it's that we're probably at least a decade away from regulators even having a hope of starting to understand what's going on.
A similar situation would be a country that in 1900 decides whether or not to outlaw cars.
https://en.wikipedia.org/wiki/Red_flag_traffic_laws#Red_flag...
And if it's not SkyNet but just an awesome tool like ChatGPT is today, do you think regulators will manage to take into consideration the advantages lost making this tool illegal while protecting us from a potential SkyNet?
have you read the EU's proposed approach to regulating AI?
https://digital-strategy.ec.europa.eu/en/policies/regulatory...
it seems to be an extremely reasonable approach to me, if anything a little too lax
the problem for OpenAI is its products can't easily be segregated into the different risk buckets...
and they want ChatGPT wired into the high risk areas as that's where the profit is
One thing I don't quite understand is how they are going to ensure that AI-generated text is always marked as such. When the text is generated in the chatbot, the fact that it is AI-generated is clear, but the user is free to copy-paste it anywhere. There is no good way to watermark plaintext.
And if someone is operating a troll farm in another country, this won't help.
Of course all business should comply until they can't, at which point it's really not their problem anymore. I think it's perfectly fine to say "hey, we did our best", but if it still isn't enough, to simply not play the game.
Unfortunately, HN has fallen for the tricks.
"any real regulation" does not match in any way what was said.
It couldn’t be that the EU regulators are clueless could it?
And you don’t see a difference between the harm that ChatGPT could do compared to the harm of an AI controlling a self driving car?
But no, He is in front of US congress arguing for regulation, he is in the EU arguing against regulation.
It's pretty obvious he's after whatever (de)regulation supports his business model. But I guess that's just his job.
Let's hope regulators don't forget it is their job to represent the people's interests... I mean, whatever those may be in this case, I'm not claiming it's easy, I'm just claiming that Sam may not be the person to have the people's interests at the top of his list.
In the US he knows it’s easy to manipulate our policy with a little song and dance because our policy makers don’t understand what they are looking at.
It’s a different story in the EU where you have competent leaders.
That seems to be the reason for the inverse approach.
US: “let me help you write the regulations ;)”
EU: “you’re gonna be behind it you regulate me :0”
The last EU initiative at sweeping regulation in the tech space (GDPR) was disastrous. It imposed huge compliance costs for all entities, from large multinationals to small startups and business and even some individuals and nonprofits. For the multinationals that is totally fine with me, they can afford it, but for the other ones it is far from clear that the benefits outweigh the costs. They could have just made it not apply to small entities (either in revenue, number of users or some other metric) and it would have been arguably great. The way they did it they just gave a big advantage to large incumbents and put a strong handicap on EU based tech start ups (as well as other businesses to a lesser extent).
Years after the roll out, I still occasionally come across international websites that have opted to ban European visitors than figure out how to comply with GDPR.
Don't get me wrong, the GDPR was meant to address real on going abuses of personal data, and did some things right, but it could have easily had most of the benefits for a fraction of the cost if they did things right. Unfortunately, like all almost all regulators, Brussels tends to pay a lot more attention to hypothetical benefits of regulation than its predictable costs.
* Try to contact owner of data to ask for consent of all people (maybe thousands)
* They ignore you because it's an insane task to arrange all those consents...but...
* Now you have shown that you did a reasonable effort to obtain consent and...
* Now you can use the data for research purposes.
You can't use it for making/creating anything related to IP though. But you can get creative of course.
1. Make it harder for smaller LLM based companies to break into the space
2. Drum up interest in OpenAI by making it seem that they had or were close to having an ai worth regulating
He's looking for regulation in the US that will ultimately protect Open AI because he believes he can get it.
He's opposing regulation in the EU because he knows he can't control it and it will almost certainly actually restrict him.
It's so plainly obvious and obviously cynical, it's just gross. Especially when his calls for regulation in the US are supposedly based on trying to look out for humanity on a grand scale.
3) Get ahead of the attack on AI before the attack begins.
Once LLMs start to make certain jobs obsolete, I predict one of the major US political parties will take a position against AI (as a job destroyer similar to outsourcing) and the other party will take the opposite side. No idea which party will take which side yet.
Once it becomes an issue of this magnitude, it’s better optics to have went before the senate “asking” for regulation before they come to you demanding regulation.
I've seen a few times. It's one of the steps to create a government assisted monopoly
It's starting a discussion, and more tacitly, a negotiation. We need to weigh in to the right people proactively if we want to be represented and start defining intelligent regulation.
https://www.reuters.com/technology/openai-chief-goes-before-...
but a 'good' reason for legislation is if it benefits everyone, including you.
I suppose now it's now obvious to everyone that that's a lie
Its clear why sam altman wants it, the comment was about why people should have fair, just regulation— not the ones pushed by corporate agenda.
Now, his protege is attempting to steal the Nerds' lunch money with CoPilot.
I assumed without checking that Microsoft would have their own competitive offering in the space.
Not in the least related to him selectively changing postures because he worries about a real threat of upstart competitors forming in the highly dynamic U.S. market, while also worrying about a loss of manipulable customers in the much more passive and non-competitive EU market.. Couldn't be something like that.
The main risk for them is that the actual risks from use and abuse of AI in various domains will only start showing up later. So early regulatory work might appear silly or misplaced. But that is not a reason to adopt a "wait-and-see" attitude.
There is so much recent precedence in the software domain: the privacy disaster from targeted adtech and the speculative manias of crypto. Once large numbers of users are lulled into certain behaviors under false pretenses it becomes much harder to reverse the social damage.
While privacy is a connected risk here too, there are much wider possibilities for abuse once algorithms are on the loose, processing and influencing without any transparency or accountability. We know that people will try anything that is not explicitly illegal if it gives them financial or political leverage. Gray areas of missing regulation are an open invitation for "creative" thinking and regulatory arbitrage.
The noise "not to suppress innovation" will be enormous. But the concepts and tools for sandboxing and keeping a close eye on developments are there. The idea that the only way to innovate is to move fast and break things is just a transparently self-serving dictum that should be put to rest.
They should keep an eye for oligopolies too. There is no reason to endure more decades of gratuitous "winner-takes-all" dynamics. The technologies are exciting, there are clearly positive scenarios. Let us hope we are smart enough to properly regulate smart algorithms.
Releases the most powerful LLM the world has seen pretty much publicly and next to free.
However now that he has the lead wants everyone to be regulated and now allowed to open source it.
Tells the US gov, where his competition is mostly likely to come from that they need regulation.
Tells the EU, where the actual enforcement of privacy and legislation happens via billion dollars fines, that he doesn’t want regulation.
Comical display.
I would find it amazingly depressing if capable AI like GPT4(+) in general was blocked to the public, like it were heavy assault vehicles or nuclear devices.
Just block specific instances of it. Just block WhateverShadyStartupDecidingIfYouGetAJob using GPT for example, I'm fine with that. If I can replicate their work at home, leave me be. Regarding this tech as if it were explosive devices is way too heavy handed for my taste.
It's also possible that any calls for reasonable regulation were just pandering towards investors. Key FTX people also called for regulation of the crypto market, after all. It projects a willingness to be a good and compliant company, even if they'd wish they themselves wouldn't have to comply.
He didn't say he doesn't want them. He said AIs, for a lot of reasons, may not be able to operate within the confines of potential regulations. For a simple example, they may be trained on work that was not properly licensed in the EU. That's only one compliance challenge in one dimension, but there are a large number of dimensions in which AIs might fall outside the mandated parameters.
Obviously people will try, but there are reality based technical limitations.
[1] https://leftycartoons.com/2009/09/04/a-brief-history-of-corp...
Then big surprise when another news about US spying on its citizens harder than people thought drops...
It is easier to read the law and the cover text explaining the reasoning behind the regulations than to read a vague US/UK style law and then having to research court rulings, looking which of these conflict with each other or if they're even applicable (as I recently learned here, y'all's federal courts are organized in circuits and a ruling of a federal court is only binding for that circuit).
Vast majority of cases are "we haven't even tried in the first place"
And majority of fines are in range of 4 to low 5 digit.
At least from what I observed the "mistakes" are generally fined pretty low if organization can prove it took necessary steps in goodwill, but stuff like "not telling users about the breach" is treated VERY harshly
The EU is constantly taking away your right to choose which companies you want to use and it’s being celebrated
This is the "pro-crack-den" argument. Boring, boilerplate libertarian dogma. Not suitable for use in the real world.
So you're saying that the crack houses should be legal and open to all. Cool.
Or do you mean that when the drug epidemic hit “rural America” politicians started treating it “as a disease” instead of a moral failure when it was all about the “inner city” drug problem?
But either way, are you comparing going to a web page that stores data in the US that you can choose not to go to going to a crack house?
Citation needed. Who? This example seems very fictional, as shopify operates in the EU - there is no fine for simply "use shopify". "handle the sensitive financial data". is literally what such services do for their clients.
It hasn't been big news since then, so in the six months since then, did shopify manage to conduct their business legally, or did the business go to one of their several competitors who cares more about operating legally in the EU?
IDK, is this related? https://www.reuters.com/business/retail-consumer/eu-says-sho... https://ec.europa.eu/commission/presscorner/detail/en/ip_22_...
"Company complies with consumer safety law" is hard to spin as a bad thing, but go on, what have you got in that regard?
> complaints mainly related to web stores hosted by the platform, found to have engaged in illegal practices, such as making fake offers and fake scarcity claims, supplying counterfeit goods or not providing their contact details.
The GDPR basically makes it illegal for an EU online business to use any SaaS service in the US or in this case Canada.
It was never meant to “protect” anyone. The entire purpose was to make it easier for EU companies to compete.
No, only if they cannot comply with the law.
> It was never meant to “protect” anyone.
That is the opposite of true. I've seen it help internally at a data storage level, and seen people make use of it to protect themselves. You do not know what you are talking about.
So exactly how is an EU citizen suppose to use a service like Shopify - that has to store PII - and that’s not based in the EU?
> That is the opposite of true. I've seen it help internally at a data storage level, and seen people make use of it to protect themselves. You do not know what you are talking about.
And it also killed a small business who wanted to use Shopify to sell completely legal things.
Not to mention that the same EU that is being applauded for “protecting your privacy” is trying to get a law passed so they can have a backdoor to any W2s encrypted methods.
It’s not that they want to protect your privacy. They just want to be the only ones who can surveil you.
If you do want to store the data, those just specify what and how with enough detail that battalion of Facebook lawyers can't go around it. It's mostly sensible when you get around to implementing it.
For example if you store data for say CCTV purpose, you have to tell people they are being monitored, for what reason, who administers the data etc.
Article 6 covers filming the public spaces i.e. they don't have to give written consent because the extra security of security cameras provide considered greater good than individual.
But at same time it allows processing only for those purposes. You can't just go on facebook and post some video from security camera of someone doing dumb shit. You can't just film inside toilet. You can go and monetize it in any way etc.
You also need to do the rest of due diligence of making it secure, not sharing with 3rd parties unrelated to the goal etc.
IIRC some company got $200k for doing exactly that, just posting basically some dumb shit people did, without even blurring out the people in all of the videos. Which triggered an audit that discovered that way more people that should had access to security footage.
Similar things apply to storing and analyzing logs for security purpose. They are considered "greater good" under article 6 and you can store and use them for, say, blocking malicious users on WAF, but you can't then go and handle it to your marketing team and you would have to anonymize it if you for example wanted to give those logs to developers to debug problems.
I see sites all the time that use shopify at checkout to handle the sensitive financial data. That's literally what they do for their clients.
and the Tesla self driving
The impression they have is that regulation is used to stomp out small businesses (and unions have some propensity for corruption).
The EU regulation does not come with the same feelings, aside from the very aggressive FUD around GDPR. EU regulation is typically seen as something for the consumer/public good and not intended to stifle competition.
With that in mind, it's interesting to see him arguing for regulation in the US, yet against regulation in the EU.
There is also a large difference in practice. In the US, it is possible to get rid of regulations via lawsuits or "lobbying". It is also possible to corrupt public discourse with large amounts of advertising (see https://news.ycombinator.com/item?id=36067401). It is much harder to apply US-style lobbying to EU regulators (one of the motivations for Brexit was to get away from EU regulators), so American companies will try very hard to get out from the regulations while making money from EU customers.
What he wants is toothless & after-the-fact regulation that will not reduce his income.
You even admit this - nobody feels this way, except for the people who very strongly feel that way but their feelings are "FUD" so don't count?
GDPR often gets blown out of all proportion by people who seem to have a vested interest in having the regulation scrapped.
This played out the same with the EU cookie directive which was intended to give people consent on how they were tracked- with massive carve outs for legitimate use, the intention was that people would cut down on that tracking to avoid needing a popup; but ended up in some form of malicious compliance where everyone just put up pop-ups instead and tried to hide the opt-out with dark patterns.. massively overblowing what the regulation even entailed in the first place by claiming that the pop-up was necessary.
- The penalties are massive: fear
- The wording is vague: uncertainty
- What to do is unclear: doubt
That's entirely on the EU. I have no vested interest in GDPR one way or another at the moment and yet having been involved in assessment projects in the past, it is a crap law that makes the EU look incompetent and stupid. Nobody can figure out what the hell it means in all kinds of common scenarios. HN is full of people saying it's simple; I have yet to encounter any of these people inside actual enterprises, doing actual implementations of it. People who think it's easy are invariably eurofans engaging in wishful thinking.
> the intention was that people would cut down on that tracking to avoid needing a popup; but ended up in some form of malicious compliance
That's not how it was. The EU passed an incompetent law with unclear goals that kills the ability to do business of anyone who doesn't implement the banners. Cookies are in fact necessary, not optional, not nice to have. They are required. Thus everyone implements the banners, the internet got worse, the EU now looks foolish in front of the world and yet can't accept it.
If you read it, it's really clear: if you're not sending information to third parties then it's exceptionally easy to be compliant. A lot of things are "to best effort" which puts the burden of proof on the prosecution that you were grossly negligent.
There is a dedicated website to explaining the regulation for dummies; https://gdpr.eu -- the entire thing is 11 chapters, half of that is for governments to harmonise their national regulations to be GDPR compliant without people needing to invoke "GDPR", the remainder is a mix of common sense and ensuring digital privacy and consent. It's really clear for a legal document.
I should know, it's my part of job to read them and to ensure my company is compliant. It's not hard. The most loud people about this are lawyers who have a financial incentive to make it as hard as possible.
Even basic things like backups are made unclear by GDPR! Truly, a more incompetent piece of legislation is hard to find. The only people who disagree on this are people who have hopelessly naive views of what regulators are like, and assume they'll always be friends. Nope. You have to read these rules as if the people who are enforcing them are completely unreasonable sadists. The lawyers understand that, you don't, so I hope you aren't in a position where you may lose your job in case of GDPR violations.
The principles for satisfying “best efforts” standard have been enumerated as follows:
* "Best efforts" imposes a higher obligation than a legal "reasonable effort".
* "Best efforts" means taking, in good faith, all reasonable steps to achieve the objective, carrying the process to its logical conclusion and leaving no stone unturned. However, it does not require a party to sacrifice itself totally to the economic interests of the party to whom the duty is owed, although the interests of the other party must predominate.
* "Best efforts" includes doing everything known to be usual, necessary and proper for ensuring the success of the endeavour.
* The meaning of "best efforts" is, however, not boundless. It must be approached in the light of the particular contract, the parties to it and the contract's overall purpose as reflected in its language.
* While "best efforts" of the defendant must be subject to such overriding obligations as honesty and fair dealing, it is not necessary for the plaintiff to prove that the defendant acted in bad faith.
* Evidence of "inevitable failure" is relevant to the issue of causation of damage but not to the issue of liability. The onus to show that failure was inevitable regardless of whether the defendant made "best efforts" rests on the defendant.
* Evidence that the defendant, had it acted diligently, could have satisfied the "best efforts" test, is relevant evidence that the defendant did not use its best efforts.
Mere reasonable efforts will not suffice to meet the “best efforts” standard. Neither will occasional efforts made from time to time suffice. A higher level of effort is required.
Examples of situations where the standard was not met include:
* Contract for the purchase and sale of a house required the purchaser to obtain financing. Court found that the purchaser failed to do so because he applied for a loan for an inflated sum (by 60%), delayed the loan application, and that true reason for these actions was that the purchaser simply did not want to buy the property because he received a negative appraisal of it.
* Contract for the purchase and sale of land. The contract required the vendor use best efforts to obtain subdivision approvals. Obtaining approvals was also a condition precedent in the agreement, meaning that the parties could walk away from the transaction if the approvals were not obtained. The vendor hired an agent to obtain approvals, but the agent failed to advance the process. As time went on, the price of the land went up and the vendor notified the purchaser that it ought to be discharged from the obligation to close the transaction due to not receiving approvals. The Court found that the Vendors did not use best efforts. The court commented that to satisfy the standard, one must show progress, as well as reasonable and sensible response to roadblocks.
Examples of where the standard was met:
* An agreement to lease required tenants to obtain a business license to operate a car dealership on best-efforts basis. The tenants submitted an application within 3 days of signing the lease, did so accurately, but were told that the process would take significantly longer than anticipated. Best efforts standard was met.
Generally, there are more decisions where this standard is found to not have been not met than where it was met. Shy of impossibility, the best efforts standard imposes onerous obligations on the party that agrees to be bound by such a clause.
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The right to be forgotten does not apply to data that is not being processed, so your backup situation is clear too and if you ask then you get pretty clear answers. Obviously if you restore the backup you would be expected to re-process right to be forgotten requests, which can be stored for the duration of your backup.
Your lawyer has well and truly convinced you that it's difficult, it's not, and if you have a serious question; you can send it to your countries DPO office: https://edps.europa.eu/data-protection/data-protection/refer...
The backup question, for example, was clearly (publicly) answered by France's DPO.
To be clear here: I don't think you've actually interacted at all with the apparatus surrounding GDPR. It's not my lawyers who are loud, it's lawyer consultants- it's lawyers of companies who's business model is not compliant (trading personal data). It's people in the US and UK who are trying to spread as much uncertainty as possible to either make the EU look incompetent or non-competitive and/or weaken the bloc.
It's absurdly easy to be compliant. For all the whinging, if you're taking the necessary steps to secure data that you should have always been taking, and you don't sell peoples data, then the only thing you need to bake in is a "delete account" function- even things like legal records are exempt so transaction logs are not subject to GDPR. Just read the text.
I guess the reason people are scared is that GDPR is the first legal text they ever came into contact with. These are really common legal terms which have huge numbers precedence attached.
More regulations for thee, but not for me (O̶p̶e̶n̶AI.com). But little do the regulators know that the majority owner (Microsoft) will lobby and bribe them a little to have regulations to benefit both O̶p̶e̶n̶AI.com and Microsoft, etc over everyone else.
I wonder what jurisdiction he winds up in and why?
(old man yells at cloud)
All other regulation: bad
The US crafts regulations that work with businesses while the EU crafts them and is OK to sacrifice businesses. Additionally, the EU crafts regulations that can accomplish nothing but increase costs and reduce quality without helping the end goal. For example, all the cookie banners that have pervaded the internet. They don’t actually help reduce tracking, they make the web less usable, and they’ve made compliance more complicated, and building a website is more expensive as you have to add these banners. Sure GDPR has strengths but the cookie aspect is a miss. In fact, the EU is as easily bamboozled as the US considering that Google had a huge hand in shaping GDPR legislation.
Of course even the strongman interpretations are problematic here but just saying. I think there may be more nuance here than the hot take based on the headlines alone.
> …he was miffed by the way the European body defined “high-risk” systems..
> According to Time, the OpenAI CEO said “If we can comply, we will, and if we can’t, we’ll cease operating… We will try. But there are technical limits to what’s possible.”
> He called for some regulation “between the traditional European approach and the traditional U.S. approach,” whatever that means.
It’s important to catch the author’s non-neutral tone here. They’ve clearly staked out a position and it’s worthwhile to keep that in mind.
This has been the tech playbook for close to two decades now, it’s time we stop participating in the charade.
So he doesn't really want any regulation at all.
Sure, you can accuse EU of hidden protectionisms blabla, but for now, this is better than nothing.
It's not what it used to be.
The EU's makes up around 15-20% of world GDP depending on how you measure it, but that's subject to disproportionality high taxes and compliance costs.
Meta only gets around 10% of its ad earnings from the EU [1]. I'm not aware of the figures for Google and Microsoft or whether such figures are even available.
Many global banks left the US or reduced it to skeleton operations after the wave of regulation following '08. Unfriendly enough behaviour might cause a similar reaction from tech in the EU.
[1] "What we do know is that roughly 10% of worldwide ad revenue comes from ads delivered to Facebook users in E.U. countries", Meta CFO Susan Li quoted on stratechery, https://stratechery.com/2023/metas-low-e-u-arpu-the-supreme-...
> The EU's makes up around 15-20% of world GDP depending on how you measure it, but that's subject to disproportionality high taxes and compliance costs.
That would have to be corrected for tech spendings, for example the fact asia produces most of the electronics have zero effect on facebook's business profits.
When a country/region deviates from the rest of the world in a big way there comes a point at which you can't offer the same products and services as other markets.
Never seems to happen, despite the incessant whining. Maybe the fines were not heavy enough.
Really not. 10% extra market share is something for large companies to worry about, the sort of thing that requires big spend in localization. For a company the size of OpenAI, there are bigger fish to fry. Europeans will use VPNs and route payments via resellers rather than not have access to the latest tech.
But even if the EU was only 10% of the potential revenue - taking a 10% hit is not something large corporations do particularly willingly. I bet as long as they can find a way to make more money in the EU than they spend, they will. It's a business decision. Doesn't mean there won't be any whining.
I think this is where the structure of the regulation becomes important.
If GPT-4 had to be retrained with regulator friendly data or assume liability for misinformation in the EU then there might not be enough of a profit incentive to stay.
I imagine they'd stay in the EU however if they just had to add more banners, data localisation and reporting. Albeit with whining.
> but that's subject to disproportionality high taxes and compliance costs.
Well, disproportionality [sic] is subjective at best, and those high taxes get evaded within EU. All big corporations do that, btw.
You're crying wolf about "disproportionality high taxes and compliance costs" but these examples of yours are drops in a bucket compared to the tax evasion severity.
Corporation tax may be avoided but that's true of every geography so doesn't affect the comparison of EU vs non-EU.
About compliance costs - the majority of >$1B tech fines come out of the EU.
EU: "Ok then"
Sam: "No, not like that"
nothing more than an oligarch dancing with government structures in an effort to prevent more equality.
surprise.
I do pay for ChatGPT, but I'm not onboard with corporate whining by spoiled CEOs from across the pond. I certainly am not a fan of US lax regulatory approach that only seem to ever favor corporations in detriment of the population with this lame excuse of not scaring away poor corporations.
If adjusting to regulation is impossible, don't do business here. It's alright.