OpenAI finds itself in a pickle – again. Following an investigation, the Italian data privacy watchdog, Garante per la protezione dei dati personali (Italian DPA), found that the company’s artificial intelligence (AI) platform, ChatGPT, transgressed the rules of the European Union’s (EU) data protection regulations.
ChatGPT steps on toes of EU data privacy rules
Following the temporary ban on processing imposed on OpenAI by the Italian DPA on 30 March 2023, and based on the outcome of its fact-finding activity, the Italian DPA concluded that the available evidence pointed to the existence of breaches of the provisions contained in the EU GDPR.
The machine-learning startup grabbed the November 2023 headlines when its board suddenly ousted its CEO, Sam Altman, and rehired him days later following staff protests. Unlike any other Silicon Valley corporate structure, OpenAI started as a non-profit organisation. It has a for-profit subsidiary, OpenAI Global, in which Microsoft Corporation (MSFT) invested roughly $13bn.
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Reportedly, Altman visited South Korean chipmakers Samsung and SK Hynix to discuss possible partnerships. According to rumours, Altman aims to raise billions of dollars to establish a network of factories dedicated to manufacturing semiconductors.
At the end of last year, reports surfaced that OpenAI is initiating a fresh funding round to aim for a market valuation of around $100bn. Should this exercise succeed, it would loop OpenAI in the same bracket as Elon Musk’s SpaceX.
Seemingly, investors were included in preliminary discussions. However, something tangible or public, such as terms and timing, has yet to be announced.
