Artificial intelligence (AI) company OpenAI was fined $15.58 million by Italy’s data protection agency. The agency hit the ChatGPT creator with a fine due to it allegedly breaching user privacy. Specifically, it argues that the company didn’t have the legal grounds to train ChatGPT on user data and didn’t properly inform them it was doing so.
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In addition to the fine, the Italian agency has ordered OpenAI to launch a six-month ad campaign dedicated to increasing awareness about ChatGPT and its data-collecting practices. It also warned that the fine could have been higher, with European Union laws allowing up to a $20 million fine or 4% of global sales.
OpenAI Plans to Fight the Fine
OpenAI isn’t happy about the fine and plans to appeal it in court. The company also complained about the size of the fine, noting that it was “twenty times the revenue we made in Italy during the relevant period.”
Italy’s actions against OpenAI are far from its first legal troubles. The company continues to deal with an ongoing lawsuit from Board member Elon Musk. Musk is suing OpenAI over its plans to change from a non-profit organization to a for-profit company. The lawsuit also argues that OpenAI has “been unjustly enriched to the tune of hundreds of billions of dollars in value, while Mr Musk has been conned along with the public.”
How to Invest in OpenAI
OpenAI isn’t a publicly traded company, meaning investors are hard-pressed to own its shares. Instead, they might consider a stake in companies that invest in the AI research organization. Three worth noting are Microsoft (MSFT), Nvidia (NVDA), and SoftBank (SFTBY). Each of these companies has made significant investments in OpenAI as they bet on the company’s success. You can weigh each option with TipRanks’ stock comparison tool below.
