Ep 309: OpenAI hacks, Apple gets valuable AI board seat – AI news that matters

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OpenAI Security Breach: Implications for Cyber Security

Recently, OpenAI experienced a security breach where hackers infiltrated their internal messaging systems. Confidential details related to the company's AI technologies were compromised, an occurrence that emphasized the increasing cybersecurity risks within the AI industry. This underlines the need for robust cybersecurity measures in the AI landscape, especially as sensitive AI design information becomes increasingly sought after.

The Impact of Tesla's New AI-Powered Optimus Robot

Tesla recently showcased their AI-powered Optimus Robot at the World AI Conference. Leveraging Tesla's self-developed neural network and computer vision technology, Optimus is touted as capable of handling diverse tasks efficiently. This development raises questions about the future of AI and the possibility of humanoid robots integrating into everyday life, including usage in households and manufacturing lines.


The Long-Expected Siri Developments To Take Longer

Updates on AI-powered improvements on Apple's Siri have indicated a delay in the roll-out of these enhancements. The news hints at smarter Siri features not becoming a reality until Spring 2025, suggesting that the development of smarter AI voice assistants might require a longer timeline than anticipated. The significance of such developments cannot be understated as they herald a shift from current dictation-like interactions to a much more understanding listening comprehension.


Apple and Microsoft's Growing Influence in OpenAI

Apple was recently granted a nonvoting board seat at OpenAI, following a similar move by Microsoft. This development signals Apple's and Microsoft's continued interest and influence in AI, even as regulatory bodies express concerns about anti-competitive practices in the AI industry. These ties between AI startups and tech giants underscore the importance of AI, not just as technology but as an economic pivot reshaping world market values.


A Potential Challenger to OpenAI: Chinese Company SenseTime

The Chinese company SenseTime has developed a new AI model, SenseNova 5.5, claiming to outperform OpenAI's GPT-4 o in five of eight major benchmarks. This news underscores the global competition in the AI field, with countries such as China potentially challenging the current tech giants. With these ongoing developments, business owners and decision-makers should stay informed about trending AI topics and consider their potential impacts.


Concluding Remarks

The AI landscape is continuously evolving, with developments that are bound to elevate business operations of the future. While cybersecurity risks are becoming more articulately defined, the potential of AI in transforming our reality is equally getting highlighted. From Siri enhancements to ambitious AI humanoids and rising challengers in the AI space, the journey towards a more AI-powered reality promises to be as exciting as it is transformative.

Topics Covered in This Episode

1. Hacking of OpenAI
2. Tesla's new Robot, Optimus Gen 2
3. Delay of Siri Upgrade
4. Apple Joins Microsoft in OpenAI Board
5. New Challenger to GPT-4o from SenseTime


Podcast Transcript

Jordan Wilson [00:00:17]:
OpenAI was reportedly hacked. Tesla kind of showed off their new AI powered, gen 2 Optimus robot. Apple gets a super valuable seat at a board that I think the feds are going to be investigating, and that's just the tip of the iceberg. Alright? There's so much going on in the world of AI. You can spend hours literally each and every day trying to keep up. That's what we do, or you could do the smart thing. Work smarter, not harder. And join us every single almost every single Monday as we bring you the AI news that matters.

Jordan Wilson [00:00:54]:
Well, that's what we're doing today. What's going on y'all? My name is Jordan Wilson, and welcome to Everyday AI. This is your daily livestream podcast and free daily newsletter, helping us all learn and leverage generative AI to grow our companies and to grow our career. So that sounds like you. Maybe this is your first time. Thank you for joining us. If you're listening on the podcast, check out your show notes, as always for more information. But more importantly, you're going to want to go to your everydayai.com.

Jordan Wilson [00:01:20]:
That link is in there, so make sure you go sign up for our free daily newsletter. So, yes, this is a live stream, unedited, unscripted. So, you know, let's go ahead and just jump straight into the AI news that matters for the week of July 8th. Alright, y'all. Even though there was the 4th July weekend, here in the US, there was a ton going on. And, you you know, for our livestream audience, thank you for joining us. Doctor Harvey Castro and Kobe and doctor Scott Dell, Michael, Tara, Brian, everyone, thanks for joining in. Let me know as we go along what you think of some of these AI news stories.

Jordan Wilson [00:01:57]:
I I think some of them are pretty impactful. Alright. So let's start at the top. Grabbing a lot of head headlines right now is, well, OpenAI has gotten hacked, and internal details were stolen according to reports. So, as first reported by Bloomberg, a hacker infiltrated OpenAI's internal messaging systems last year, extracting information on the design of the company's AI technologies. So, this did reportedly happen last year but was just reported. So, this new breach involved details from online forum discussions among OpenAI's employees regarding the firm's latest technology. So OpenAI executives revealed the breach to employees and the board in April of last year, opting not to disclose it publicly since no since they said no customer or partner data was compromised.

Jordan Wilson [00:02:54]:
The incident was not deemed a national security threat with executives speculating that the hacker that the hacker was an individual unaffiliated with any foreign government. OpenAI also did not notify federal law enforcement agencies about the breach, and no customer or partner data was reportedly stolen. In a separate incident, but also pretty important, OpenAI disrupted 5 covert influence operations aiming to misuse its AI models for deceptive activities online. So the Biden White House Administration here in the US is reportedly planning to implement safeguards around advanced AI models like ChatGPT to protect US AI technology from potential threats posed by countries like China and Russia. 16, all, we've talked about this before on the show, 16 AI companies pledged at a global meeting earlier this year to develop AI technology safely amidst regulatory challenges and emerging risks in the field. The breach underscores the ongoing challenges of cybersecurity in the AI industry and the importance of safeguarding sensitive AI design information from unauthorized access. Y'all, especially, you know, as we're getting closer here to, election season in the US, expect to see a lot more of these, kind of data breaches. Unfortunately, at these large AI companies, I do think that this is going to be the norm.

Jordan Wilson [00:04:18]:
You you know, we've heard about data breaches for decades, but, you know, this is probably 1 of the first, bigger ones as it comes to, you know, either ChatGPT or Microsoft Copilot, Google Gemini, Anthropp X Claude. This is 1 of the first bigger ones. And, again, report at least this did not include any customer or partner, data, only internal documents and discussion. Alright. Speaking of new developments, Tesla has unveiled its 2nd generation humanoid robot Optimus at a WorldAI conference. So Tesla introduced its 2nd generation humanoid robot Optimus gen 2 at the World Artificial Intelligence Conference in Shanghai, China. However, it wasn't really like a hands on demo as the newest Tesla robot powered by a lot of AI was behind a glass display. So Optimus is equipped with with Tesla's self developed neural network and computer vision technology, positioning itself as a versatile robot of, handling capable, various tasks.

Jordan Wilson [00:05:28]:
So Tesla's CEO, Elon Musk, projected that Optimus could potentially boost Tesla's market cap to 25, 000, 000, 000, 000 US dollars in full scale production. I'll just go ahead and say that's not going to happen. You know, Tesla, you know, Elon Musk is always saying some very outrageous things. I don't think that this is going to, all of a sudden make Tesla a $25, 000, 000, 000, 000 company anytime soon. 1 of the most valuable companies in the world are right around $3, 000, 000, 000, 000. So some overly optimistic projections as always by, Elon Musk. And despite the attention that Optimus has received at the event, it did not move or interact with visitors, just really more sparking curiosity about its capabilities. So more or less, you know, dancing robot behind glass.

Jordan Wilson [00:06:13]:
Also the cost. That's what everyone's wondering. Right? How much is this going to cost, and and when might this be released? So, well, while there's no official release date or pricing data, Elon Musk has reiterated in the past that he expects the Tesla optimize, optimist price to be around half the cost of a car. So considering Tesla's most popular model y starts at about 45 $1, 000, this suggests a price point of maybe less than 25, 000 or $30, 000 for this new Optimus Gen 2 AI powered humanoid robot from Tesla. So, I'm not overly optimistic that we will see that, you know, 25 to $30, 000 price point, and I'm also not overly optimistic that this is going to land anytime soon. If I'm being honest, I I put, you know, a little more of my, you know, bet on, NVIDIA backed, figure. You know, I I do think the figure robot, at least the demos that they've already shown, is probably a little closer to production. And you also have to think, where are these AI powered humanoid robots going to actually be used? Right? Am I gonna have 1 in in my house, doing my dishes? I mean, hopefully gosh.

Jordan Wilson [00:07:29]:
I did, like, 3 rounds of, dishes yesterday. It's like, how how is that even possible? So I don't know if if, you you know, even the Tesla figure, are gonna be more geared toward home. So you do have these, you know, much more, quote, unquote, affordable, you know, AI powered humanoid robots, more in the $5, 000 range, but those are seemingly a little bit more toys. And then you have these companies like Figure, like Tesla, and a lot of other ones that, you know, really the the capabilities seem to be pushing what a human could in theory do. Right? So when you think of production and manufacturing, that's where a lot of people are looking at, you know, when a company might, you know, buy couple dozen of these or a couple 100 or a couple 1, 000 of these, you know, robots, humanoid robots in the future, especially as you start to pair them as we saw with the figure demo back in March. Right? So when you start to pair them with computer vision, when you start to pair them with a large language model, that's when the capabilities of these humanoid robots, really come into question on what are they capable of or maybe what aren't they capable of. Right? So it's it's pretty, pretty exciting or maybe concerning developments depending on, you know, your your thoughts on the topic. So, yes, also, doctor Scott Lovedis, talking about Atlas, the Atlas robots, as well.

Jordan Wilson [00:09:00]:
So, yeah, we've we've covered those, in on the show here as well. Tara saying she wants 1. Yeah. I don't know. Would you want a, 1 of these 25, $30, 000 AI robots walking around your house? I'm iffy. Right? I love AI technology. I love, you know, automation and, you know, doing as little as possible, especially here in the home. I don't know.

Jordan Wilson [00:09:22]:
Maybe maybe my view on this will change in a year or so. But right now, you know, hey, even though that's a it's seemingly a super affordable price. Right? When you talk about 25, to to $30, 000 if it can actually hit that price point. That doesn't seem like a lot, and especially if it's something you know, if it if it can go up and downstairs, if it can, you know, do basic, you know, basic tasks and chores around the house. You know, it doesn't seem like a terrible price point, but I don't think at that price point still, that we're gonna be seeing these AI humanoids, in houses, for the most part anytime soon, probably more, assembly lines, I would say. Alright. Let's keep it going. So our next piece of AI news, and this 1 I would say is not too shocking.

Jordan Wilson [00:10:10]:
We did kind of, call this, you know, a month ago that this was probably the case, but it is now confirmed. So according to Bloomberg reports, most Siri enhancements, most of the shiny AI powered ones at least won't be available until 2025 with an official rollout, planned for spring. So that's according to Bluebird reports, in the highly anticipated big Siri upgrade, that promised a much more human like understanding of context. You know? Yeah. We're not gonna probably get that until spring 2025. So iOS 18 betas revealed a lot of new features, but the significant AI powered improvements, including the nears, the new Siri, are reportedly going to be delayed. So, yeah, a lot of these kind of, Apple intelligence features that we saw, with this new OpenAI and Apple partnership, were kind of teased at the WWDC event now about a month ago. So, developer beta users may get to test the new Siri in January, but a public, debut is expected around spring as part of the iOS 18.4 upgrade.

Jordan Wilson [00:11:26]:
Alright? So that is the the magic, number there and the magic date as to, will the masses finally have a smart assistant? I don't know. But the the delay in the Siri upgrade rollout means users will still have to wait longer for those smarter Siri features, including that new design and integration with ChatGPT. So like I talk about, like I talked about, we had pie we had hypothesize about this. Can't can't speak here this this Monday morning. We talked about this actually last month, the day after WWDC rolled out because we went back and listened, and relistened to the pod to to the announcement from WWDC, specifically about Siri and about the future of this Apple Intelligence. Right? And they kind of alluded to that you would be able to connect in the future your ChatGPT Plus subscription. So not a lot of people talked about that. Actually, I didn't see anyone aside from us talk about that.

Jordan Wilson [00:12:30]:
So it it was almost a a footnote, in the keynote of the, kind of partnership announcement between Apple and OpenAI. However, at the time, I said that's pretty significant because I would guess, and I literally said this, June 11th. I said I would guess that we are not going to be getting a smarter Siri this fall when this new, rollout is unleashed in iOS 18. Right? So that is when we will be getting some sort of, AI in the new Apple ecosystem. Right? So, Apple did announce a couple of things. They announced their own internal large language model, which will actually just be, seemingly handle handling a very small amount, of user requests. Right? So when users ask the new Apple Intelligence, questions, very few of them are gonna be handled, kind of on the internal, large language model that Apple will be rolling out in its newer phones or if you have an iPhone 15 or above. However, it seems like so many of these queries are actually just going to be sent, to ChatGPT to GPT 4 from OpenAI, and you just kind of have to click accept, which I talked about this at the time.

Jordan Wilson [00:13:42]:
I'm like, is this really AI on the new Apple phone? I don't really think so. I think it's just more of an intuitive way to launch, chat gbt in the background, which you can obviously get a lot of these, answers now. But, you know, the big news here is, that Siri will not likely be coming anytime soon. So, yeah, we're probably gonna be waiting at least 9 to 10 months, to see this new smarter Siri, which is something that I talked about, back in June. And, also, are you going to need a paid ChatGPT plus account? I think that's the thing that a lot of people are gonna be looking at. And how many, or or how much of this new functionality that we saw in the kind of keynote from Apple? How much is going to require a paid $20 a month ChatGPTplusaccount versus what will you be able to do with the base model? I'm not sure, but, also, I still wouldn't be surprised if you have to pay that $20 a month for this new, quote, unquote, smarter Siri. So, pretty interesting, pretty interesting here. Cecilia saying Siri needs remedial education for listening comprehension.

Jordan Wilson [00:14:55]:
Yes. My gosh. I couldn't agree more. Right. And and and kind of also, we've seen similar, kind of delays from OpenAI. So when OpenAI had their, kind of spring events back in May, so about, that's probably about 8 weeks ago, They kind of teased this new GPT 4 o. You know, what a lot of people are calling her. Right? Doctor Scott here referencing that.

Jordan Wilson [00:15:23]:
But, this very intuitive, real time almost live assistant, right, which is a real shift from how we've been using large language models, right now. Right? So how we use them right now, it's for the most part, you know, text inputs. You can, you know, input a a photo. You can also talk and use dictation, but that's really all it is right now is dictation. Right? So right now, large language models aren't understanding our voice. However, with this new, kind of Siri, release that is actually just tied to the GPT 4 o model, that is presumably what we will be seeing. But OpenAI did just announce, last week that they needed essentially another month. Right? They said, alright.

Jordan Wilson [00:16:04]:
Yeah. We we showed you this really cool new, interactive, kind of creepy. It's it's kinda 1 of those things so good it's creepy. You know, GPT-40, kind of live. We're calling it live Omni. Some people are calling it Her. Some people are just calling it enhanced voice features. There's really no name.

Jordan Wilson [00:16:23]:
Right? That's 1 thing I wish OpenAI would get actually take a page out of, Apple's book and just name this thing. Right? What is this new, you know, kind of live, agent type, you know, interaction that we're that we're waiting for that is also, presumably here tied to the, future Apple, rollouts in Siri as well. So, it should be pretty interesting to see as well as this is tied to Microsoft. Right? So that actually brings us to our next, big story and an interesting 1 here as well. Alright. So Apple has joined Microsoft as a nonvoting board member at, you guessed it, OpenAI. Alright. So Apple has recently secured an observer seat on OpenAI's board of directors, a move that signifies its growing involvement in the AI space.

Jordan Wilson [00:17:19]:
So this position to be filled by Apple's App Store head, Phil Schiller, allows Apple to gain insights into OpenAI's decision making process. Microsoft, yeah, Apple's biggest rival, also holds a nonvoting board seat on OpenAI since November 2023 following its multibillion dollar partnership with the AI startup behind CheckGPT. Yeah. The Microsoft 1 came about in an interesting way. Essentially, the OpenAI board fired, CEO Sam Altman in November, and then he was quickly reinstated a couple of days later. And with that, Microsoft also, you know, presumably well, like, rightfully so. Right? Like, everyone in Microsoft stock was extremely volatile, and, essentially, what came out of that is, Sam Altman was reinstated, and Microsoft also secured a non voting board seat. So pretty interesting here.

Jordan Wilson [00:18:14]:
Apple reportedly getting the same. So both Apple and Microsoft have obviously been competing closely for the title of world's most valuable company with Microsoft's recent AI initiatives helping it surpass Apple's market capitalization temporarily. So, yeah, they're jostling back and forth. But funny enough. Right? It's weird. It's almost like I've been saying this for, like, a year and a half. You're right about how so much of our future economy is, predicated on the success or failure of generative AI systems. Right? Probably 4 years ago, no 1, in I I will say oh, well, I'll say almost no 1, 4 years ago, 4 to 5 years ago, almost no 1 had heard of OpenAI.

Jordan Wilson [00:18:57]:
I will say 99, percent of the US population had never heard of OpenAI. And now here it is. It is the core technology that is powering 2 of the 3 most valuable companies in the world in Apple and Microsoft. Right? OpenAI is essentially powering both of these companies right now. Both companies are also working on and continuing to invest 1, 000, 000 of dollars and a lot of, you know, human power into developing their own, large language models and small language models. However, right now, it is literally a, quote, unquote, startup in OpenAI that is powering 2 out of the 3, most valuable companies in the world, right, with, NVIDIA usually right there in the fold. So Apple's collaboration with OpenAI extends beyond the board seat as, obviously, like we just talked about, it plans to integrate ChatGPT into its devices. Here's the catcher though without any monetary payments to OpenAI.

Jordan Wilson [00:20:00]:
Apple got the legit, I think, steal of the year right here with this integration with OpenAI. So, reportedly, we've talked about this on our AI news that matters show a couple of weeks ago. So, reportedly, Apple is not paying OpenAI for this integration. It's it's kind of like an unpaid intern. They're getting paid in quote, unquote exposure, which does lead me to believe that there will be some sort of easy, integration or some way, that Apple will actually push or encourage users to upgrade, to ChatGPT plus, to get certain features in its operating system. But the increasing ties between AI startups and tech giants like Apple and Microsoft have raised a lot of concerns about antitrust issues and the lack of transparency in decision making process. And that's what I think no 1 is talking about here with this recent news of Apple, both the Apple partnership, with OpenAI, but also, this board seat situation. My gosh.

Jordan Wilson [00:21:06]:
I think this is really actually going to heat up current federal investigations because right now, US agencies, including the Federal Trade Commission and the Department of Justice, are conducting multiple investigations into potential anti competitive prop practices by major tech companies in the AI industry, focusing really on Microsoft OpenAI, NVIDIA, and Apple. So if nothing else, this is really going to heat up investigations. And those probes are aimed to determine if these companies are leveraging their dominant positions to stifle competition and innovation in this rapidly evolving AI sector with potential outcomes that could reshape the industry landscape. Right? If you're, man, if you're a federal investigator right now, you're gonna have your hands full, you know, by looking at almost these monopolies that these couple of companies are forming. Right? And we've talked about acqui hire. Right? Microsoft essentially hired a competitor by acquiring, them. So I think that we're gonna be hearing a lot in these federal investigations and what they ultimately mean. Right? But here's here's the reality.

Jordan Wilson [00:22:18]:
Right? OpenAI, who would have thought that it is by far, I think, even though it's not the most valuable company in the world, it is actually 1 of the most important. Right? Even though, yes, it is still technically a, a startup, it's at least not currently generating 100 of 1, 000, 000, 000 of dollars in revenue yet like a lot of these other big tech companies. But you have to think, they are probably 1 of the more important companies because right now, they are powering Microsoft. Right? Microsoft's obviously working behind the scenes on developing its own model, so it has less of a reliance. But Microsoft has invested reportedly $13, 000, 000, 000, into this partnership with OpenAI. And right now, the GPT 4 o model is powering, you know, the current version of Windows. Right? And it's powering Copilot. And now we have the same thing with Apple.

Jordan Wilson [00:23:12]:
It is going to be powering Apple's iOS and a lot of their AI features, that, you know, Apple just announced. So very interesting times. Alright. We have 1 more story, but I'm just gonna tease it. You gotta go check it out in the newsletter because it's kinda technical. I didn't wanna bore y'all by going over the technical details, but a new GPT 4 o Challenger from Chinese company SenseTime has, just popped up with their Sense Nova 5.5 that according to them is out benchmarking OpenAI's most powerful model, GPT 4 o. So make sure you go to the newsletter at your everydayai.com to check that out. Alright.

Jordan Wilson [00:23:56]:
So, yeah, a question or a comment here from Raul. Love this. And, the the answer is absolutely. So he's asking, so is the benefit for OpenAI is that they will start gathering all the data from Apple users? Seems a very expensive way to market their product. So, yes, Apple has historically been a leader in data privacy. So once that does roll out, it should be pretty interesting on what those data sharing permissions are. But, presumably, when you do allow, right, so the at at least in Apple's keynotes, essentially, if there's a query that you ask of their Apple intelligence that it cannot handle on, on device, It will prompt you to do you want to use, you know, essentially chat gbt for this query. I'm guessing so many people are going to hit yes, or there may be a setting that just always allows you to click yes.

Jordan Wilson [00:24:50]:
And in that case, you probably are waiving a lot of those privacy rights, to OpenAI and to chat gbt. But, yeah, in the long run, so much of of what's valuable now. Right? It's like, oh, what's the new gold? What's the new oil? You know, people are saying it's AI. Yes. It's AI, but, ultimately, it's data. Right? So, yes, I I would assume, Raul, that that is going to be 1 of the main plays. Alright. So that is a wrap.

Jordan Wilson [00:25:18]:
So let me just go ahead. We're gonna recap. We're gonna recap kind of our, top stories here. So number 1, we open up with OpenAI getting hacked with their internal details stolen stolen according to reports from Bloomberg. Also, Tesla unveiled its 2nd generation humanoid robot, Optimus gen 2, at the World AI Conference in Shanghai. Our next, piece of AI news that matters is, reportedly, the smarter Siri is not going to be coming until spring 2025. Yes. So we're gonna get, yeah, still that not very smart smart assistant even with the new iOS 18 update.

Jordan Wilson [00:26:02]:
And then last well, not last, but, next, we had Apple joining Microsoft as a nonvoting board member at OpenAI, which we do think is really gonna get some, investigations heated up. And then last but not least, make sure to check out in our newsletter, Chinese company SenseTime have released a new GPT 4 o Challenger that they say is out benchmarking GPT 4 o on 5 of 8 major benchmarks. Alright. And speaking of the newsletter, a lot more there as well as you called the shots. Tomorrow so on most Mondays, we have our AI news that matters, a quick recap of news that matters to you. On Tuesdays, we generally do our hot take Tuesdays where I come in and give you my hot take on something. So make sure to check out our newsletter because you're calling the shots. Right? So if you're listening on the podcast, I'm gonna give you 4 different options, and you choose tomorrow's show.

Jordan Wilson [00:26:56]:
It doesn't get more live or unscripted than this y'all, so you are gonna vote what our show is going to be tomorrow. So make sure you go to your everyday ai.com. Sign up for that free daily newsletter to vote on that. So thank you for tuning in. We hope to see you back tomorrow and every day for more everyday AI. Thanks, y'all.

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