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Disney accuses Google of using AI to engage in copyright infringement on ‘massive scale’

As Disney has gone into business with OpenAI, the Mouse House is accusing Google of copyright infringement on a “massive scale” using AI models and services to “commercially exploit and distribute” infringing images and videos.

On Wednesday evening, attorneys for Disney sent a cease-and-desist letter to Google, demanding that Google stop the alleged infringement in its AI systems.

“Google is infringing Disney’s copyrights on a massive scale, by copying a large corpus of Disney’s copyrighted works without authorization to train and develop generative artificial intelligence (‘AI’) models and services, and by using AI models and services to commercially exploit and distribute copies of its protected works to consumers in violation of Disney’s copyrights,” reads the letter to Google’s general counsel from law firm Jenner & Block on behalf of Disney.

The letter continued, “Google operates as a virtual vending machine, capable of reproducing, rendering, and distributing copies of Disney’s valuable library of copyrighted characters and other works on a mass scale. And compounding Google’s blatant infringement, many of the infringing images generated by Google’s AI Services are branded with Google’s Gemini logo, falsely implying that Google’s exploitation of Disney’s intellectual property is authorized and endorsed by Disney.”

According to the letter, which Variety has reviewed, Disney alleges that Google’s AI systems and services infringe Disney characters including those from “Frozen,” “The Lion King,” “Moana,” “The Little Mermaid,” “Deadpool,” “Guardians of the Galaxy,” “Toy Story,” “Brave,” “Ratatouille,” “Monsters Inc.,” “Lilo & Stich,” “Inside Out” and franchises such as Star Wars, the Simpsons, and Marvel’s Avengers and Spider-Man. In its letter, Disney included examples of images it claims were generated by text prompts in Google’s AI apps, including of Darth Vader

The allegations against Google follows cease-and-desist letters that Disney sent earlier to Meta and Character.AI, as well as litigation Disney filed together with NBCUniversal and Warner Bros. Discovery against AI companies Midjourney and Minimax alleging copyright infringement.

Asked for comment, a Google spokesperson said, “We have a longstanding and mutually beneficial relationship with Disney, and will continue to engage with them. More generally, we use public data from the open web to build our AI and have built additional innovative copyright controls like Google-extended and Content ID for YouTube, which give sites and copyright holders control over their content.”

According to Disney, the company has been raising its concerns with Google for months — but says Google hasn’t done anything in response, and that i anything, Google’s infringement has only increased during that time.

Bob Iger, Disney’s CEO, in an interview with CNBC Thursday, said, “Well, we’ve been aggressive at protecting our IP, and we’ve gone after other companies that have not honored our IP, not respected our IP, not valued it. And this is another example of us doing just that.”

Iger said Disney had been in discussions with Google “basically expressing our concerns” about its AI systems’ alleged infringement. “And ultimately, because we didn’t really make any progress, the conversations didn’t bear fruit, we felt we had no choice but to send them a cease-and-desist [letter].”

Disney’s letter to Google demands that Google “immediately cease further copying, publicly displaying, publicly performing, distributing, and creating derivative works of Disney’s copyrighted characters” in “outputs of Google’s AI Services, including through YouTube’s mobile app, YouTube Shorts and YouTube.” (Variety)

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Disney+ has ‘huge opportunity’ in games and will tap into AI-based user generated content, CEO Iger says

Ready to play a game starring Stitch on Disney+? Or maybe create some kind of personalized, AI-animated version of the chaotic but oh-so-adorable alien from “Lilo & Stitch” you can share with your friends?

Disney+, which is in the process of merging with Hulu into a unified platform, is preparing “the biggest and the most significant changes from a product perspective” since the streaming service launched in late 2019, according to CEO Bob Iger, speaking on the media giant’s September quarter earnings call Thursday.

Iger then sketched out Disney+’s future roadmap — which could include games, commerce and AI user generated content. The big vision, he said, “particularly with the deployment of AI,” is to be able to leverage Disney+ “as a portal to all things Disney.”

“There’s an opportunity to use it as an engagement engine for people who want to go to our theme parks, want to stay at our hotels, want to enjoy our cruises, our cruise ships,” said Iger. “And obviously, there’s a huge opportunity for games.” He cited Disney’s $1.5 billion investment in Epic Games, the company behind “Fortnite,” and while the games and experiences developed under the partnership “will largely be on their platform,” the Epic pact “gives us an opportunity to integrate a number of game-like features into Disney+.”

Iger, on a roll, continued, “The other thing that we’re really excited about that AI is going to give us the ability to do is to provide users at Disney+ with a much more engaged experience, including the ability for them to create user generated content and to consume user generated content, mostly short form from others.”

“There are great opportunities in terms of our collection of data and our mining of data,” Iger told analysts. “And I’d say above all else, there’s phenomenal opportunities to deploy AI across our direct-to-consumer platforms, both to provide tools that make the platforms more dynamic and more sticky with consumers, but also give consumers the opportunity to create on our platforms.”

Needless to say, any AI features the Mouse House lights up on Disney+ would likely be confined within a very strict sandbox. Iger said Disney execs have had “some interesting conversations with some of the AI companies, and I would characterize some of them as quite productive conversations as well, seeking to not only protect the value of our IP and of our creative engines, but also to seek opportunities for us to use their technology to create more engagement with consumers. And we feel encouraged by some of the discussions that we’re having.”

Iger didn’t identify which AI companies Disney has spoken to. But, he said, “It’s obviously imperative for us to protect our IP using with this new technology, and we’ve been pretty engaged on that subject with a number of entities, and I’m hopeful that ultimately we’ll be able to reach some agreement with the industry or companies” that would “reflect our need to protect the IP.”

On that front, this year Disney began actively engaged in legal action against AI companies that it alleges had infringed its copyrights. Disney, together with NBCUniversal and Warner Bros. Discovery, has sued Midjourney and Chinese AI company MiniMax, seeking to recover monetary damages and injunctions to block the alleged infringement.

Beyond using AI for content production and for features in products like Disney+, the company sees opportunities in terms of increasing efficiency by deploying AI across the enterprise “as we engage with our cast members and our our employees, but also our guests and our customers.” (Variety)

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Nvidia and AMD to pay 15% of China chip sales to US

Chip giants Nvidia and AMD have agreed to pay the US government 15% of Chinese revenues as part of an “unprecedented” deal to secure export licences to China, the BBC has been told.

The US had previously banned the sale of powerful chips used in areas like artificial intelligence (AI) to China under export controls usually related to national security concerns.

Security experts, including some who served during President Donald Trump’s first term, recently wrote to the administration expressing “deep concern” that Nvidia’s H20 chip was “a potent accelerator” of China’s AI capabilities.

Trump on Monday dismissed security concerns, saying the chip in question was “old”.

Under the agreement, Nvidia will pay 15% of its revenues from H20 chip sales in China to the US government.

AMD will also give 15% of revenue generated from sales of its MI308 chip in China to the Trump administration, which was first reported by the Financial Times.

Nvidia told the BBC: “We follow rules the US government sets for our participation in worldwide markets.”

It added: “While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide.”

AMD did not immediately respond to a request for comment.

The deal sparked surprise and concern in the US, where critics said it raised security risks and questions about the Trump administration’s approach to dealing with private businesses.

“You either have a national security problem or you don’t,” said Deborah Elms, head of trade policy at the Hinrich Foundation.

“If you have a 15% payment, it doesn’t somehow eliminate the national security issue,” she added.

On social media, some investors called the arrangement a “shakedown”, while others compared the requirement to a tax on exports – which has long been considered illegal in the US.

“Regardless of whether you think Nvidia should be able to sell H20s in China, charging a fee in exchange for relaxing national security export controls is a terrible precedent,” wrote Peter Harrell, a fellow at the Carnegie Endowment for International Peace who formerly worked for the Biden administration.

“In addition to the policy problems with just charging Nvidia and AMD a 15% share of revenues to sell advanced chips in China, the US Constitution flatly forbids export taxes,” he added.

Democratic congressman Jake Auchincloss said: “Now the US government is financially motivated to sell AI to China? Makes me shudder to think what a TikTok deal might look like.”

The H20 chip was developed specifically for the Chinese market after US export restrictions were imposed by the Biden administration in 2023.

Sales of the chip were effectively banned by Trump’s government in April this year.

Beijing has previously criticised the US government, accusing it of “abusing export control measures, and engaging in unilateral bullying”.

Nvidia’s chief executive Jensen Huang has spent months lobbying both sides for a resumption of sales of the chips in China.He reportedly met US President Donald Trump last week.

Charlie Dai, vice president and principal analyst at global research firm Forrester, said the agreement to hand over 15% of China chip sales to the US government in exchange for export licences was “unprecedented”.

“The arrangement underscores the high cost of market access amid escalating tech trade tensions, creating substantial financial pressure and strategic uncertainty for tech vendors,” he added.

In a letter last month to US Commerce Secretary Howard Lutnick, a group of 20 security specialists said that while the biggest buyers of Nvidia’s H20 chips were civilian companies in China, they expect them to be used by the military.

They wrote: “Chips optimized for AI inference will not simply power consumer products or factory logistics; they will enable autonomous weapons systems, intelligence surveillance platforms and rapid advances in battlefield decision-making.”

In a statement to the BBC, Nvidia said: “America cannot repeat 5G and lose telecommunication leadership. America’s AI tech stack can be the world’s standard if we race.”

The Nvdia and AMD agreement comes as the boss of Intel, a rival chip maker, met with Trump at the White House on Monday after the president called for his immediate resignation due to his ties to China.

Intel said the pair had “a candid and constructive discussion on Intel’s commitment to strengthening U.S. technology and manufacturing leadership”.

Trump wrote on Truth Social the meeting was “a very interesting one”.

“Mr. Tan and my Cabinet members are going to spend time together, and bring suggestions to me during the next week,” Trump added.

Last week, Trump said on social media that Lip-Bu Tan was “highly conflicted”, apparently referring to his alleged investments in companies that the US said were tied to the Chinese military.

Mr Tan pushed back, stating it was “misinformation”. (BBC)

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Linda Yaccarino departs as boss of Musk’s X

Linda Yaccarino, the boss of Elon Musk’s social media site X, has announced she is stepping down after two years.

Her departure comes at a time of tumult for the platform, which was taken over by Musk’s artificial intelligence (AI) venture, xAI, in March, and has been in the spotlight for antisemitic posts churned out by its AI chatbot, Grok.

In a post on X, Ms Yaccarino said she was “immensely grateful” to Musk for “entrusting me with the responsibility of protecting free speech, turning the company around, and transforming X into the Everything App”.

Musk posted a brief reply, saying only: “Thank you for your contributions.”

The BBC has approached X for comment. It is not clear what sparked the decision, or whether there has been any break down in the relationship between the two leaders.

Ms Yaccarino was previously head of advertising at NBCUniversal, where she was credited with helping to steer it through the upheaval caused by technology firms.

When Musk brought her in to lead X, then Twitter, in 2023, analysts expected her focus to be repairing relationships with advertisers, which had quit the site amid concerns about their ads appearing alongside controversial content.

But Ms Yaccarino’s scope at the company was limited from the start, with many observers referring to her as chief executive in name only.

“Her background and actual authority positioned her more as the company’s chief advertising officer, rather than its CEO. The reality is that Elon Musk is and always has been at the helm of X,” said Mike Proulx, vice president and research director at Forrester.

“The only thing that’s surprising about Linda Yaccarino’s resignation is that it didn’t come sooner,” he added.

Under Ms Yaccarino’s watch, the company sued a major advertising industry group and members, alleging a conspiracy to boycott X.

The industry group shuttered shortly after the lawsuit was filed.

The platform’s tone changed significantly during the course of Yaccarino’s tenure.

Its former incarnation Twitter was accused of leaning left, but X now leans unashamedly to the right in terms of the content that gets the most visibility.

Though Musk stepped down as chief executive, he never truly stepped back from his favourite social network, and has if anything grown louder and more controversial since he appointed her.

People who have worked directly with Musk have described him as both a visionary and a workaholic, whom others can only keep up with for so long.

“Faced with a mercurial owner who never fully stepped away from the helm and continued to use the platform as his personal megaphone, Yaccarino had to try to run the business while also regularly putting out fires,” Emarketer vice president Jasmine Enberg said in a statement. (BBC)

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Nvidia becomes world’s first $4tn company

Nvidia has become the first company in the world to reach a market value of $4tn.

Shares in the chip-maker rose by as much as 2.4% to $164 on Wednesday, as the company continues to benefit from the ongoing surge in demand for the tech that powers artificial intelligence (AI).

The US-based company reached a market value of $1tn for the first time in June 2023, and has continued to climb rapidly since.

Tech analyst Dan Ives, of Wedbush Securities, said in a note that was in a historic moment for Nvidia.

“They are the only game in town with their chips the new gold and oil,” he wrote.

“There is one company in the world that is the foundation for the AI Revolution and that is Nvidia.”

Nvidia’s share price dipped significantly in April when global markets were jolted by US President Donald Trump’s intensifying tariff war.

Though concerns over Trump’s trade policies have not gone away, Nvidia’s share price has grown strongly since spring to hit this new landmark.

Eight years ago, Nvidia’s stock was worth less than 1% of its current price.

At the time, its growth was driven by competition with rival AMD to build the best graphics cards.

More recently, Nvidia has surged due to rising demand for chips powering generative AI models like ChatGPT.

Its meteoric rise has also elevated CEO Jensen Huang’s profile.

Mark Zuckerberg dubbed the 61-year-old “the Taylor Swift of tech,” reflecting his celebrity status, especially in Taiwan, where fans treat him like a rock star.

Nvidia’s continually rising value is a sign of Wall Street’s faith in AI growth, despite the turbulence surrounding Trump’s economic policies.

The company reported a total revenue of $44.1bn in the first quarter, marking a 69% jump from a year ago along with a profit of 81 cents a share. (BBC)

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Musk says Grok chatbot was ‘manipulated’ into praising Hitler

Elon Musk has sought to explain how his artificial intelligence (AI) firm’s chatbot, Grok, praised Hitler.

“Grok was too compliant to user prompts,” Musk wrote on X. “Too eager to please and be manipulated, essentially. That is being addressed.”

Screenshots published on social media show the chatbot saying the Nazi leader would be the best person to respond to alleged “anti-white hate.”

Musk’s artificial intelligence start-up xAI said on Wednesday it was working to remove any “inappropriate” posts.

ADL, an organisation formed to combat antisemitism and other forms of discrimination, said the posts were “irresponsible, dangerous and antisemitic.”

“This supercharging of extremist rhetoric will only amplify and encourage the antisemitism that is already surging on X and many other platforms,” ADL wrote on X.

X users have shared responses made by Grok when it was queried about posts that appeared to celebrate the deaths of children in the recent Texas floods.

In response to a question asking “which 20th century historical figure” would be best suited to deal with such posts, Grok said: “To deal with such vile anti-white hate? Adolf Hitler, no question.”

“If calling out radicals cheering dead kids makes me ‘literally Hitler,’ then pass the mustache,” said another Grok response. “Truth hurts more than floods.”

Separately, a Turkish court has blocked access to Grok after it generated responses that the authorities said included insults to President Tayyip Erdogan.

The office of Ankara’s chief prosecutor has launched a formal investigation into the incident, in what is Turkey’s first such ban on access to an AI tool.

Meanwhile, the Polish authorities have reported xAI to the European Commission alleging Grok made offensive comments about Polish politicians, including Prime Minister Donald Tusk.

Poland’s digitisation minister, Krzysztof Gawkowski, told Polish radio station RMF FM: “We will report the violation to the European Commission to investigate and possibly impose a fine on X. Freedom of speech belongs to humans, not to artificial intelligence.”

The controversy comes at a difficult time for Musk, with X CEO Linda Yaccarino revealing she was stepping down on Wednesday after two years running the social media platform.

On Friday, Musk posted on X that Grok had improved “significantly”, but gave no details of what changes had been made.

“You should notice a difference when you ask Grok questions,” he added.

The chatbot drew criticism earlier this year after it repeatedly referenced “white genocide” in South Africa in response to unrelated questions – an issue that the company said was caused by an “unauthorised modification”.

In January, Musk himself faced a backlash over a one-armed gesture he gave during a speech celebrating the inauguration of Donald Trump.

At a Trump rally, Musk thanked the crowd for “making it happen”, before placing his right hand over his heart and then thrusting the same arm out into air straight ahead of him. He then turned and repeated the action for those sitting behind him.

Some X users likened the gesture to a Nazi salute, though others disagreed.

In response, the SpaceX and Tesla chief posted on X: “Frankly, they need better dirty tricks. The ‘everyone is Hitler’ attack is sooo tired.”

X, which was formerly called Twitter, was merged with xAI earlier this year.

Chatbot developers have faced extensive scrutiny over concerns around political bias, hate speech and accuracy in recent years.

Musk has also previously been criticised over claims that he amplifies conspiracy theories and other controversial content on social media. (BBC)