FTC probes OpenAI

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✨ Today in the Metaproof Daily

🔎 OpenAI lands FTC probe

✍🏻 Chinese regulators roll out landmark rules on AI

💰 Roundup: Web3 investments made anew

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OpenAI lands FTC probe [Link]

The Federal Trade Commission (FTC) opens investigation into ChatGPT creator OpenAI, deliberating on whether the chatbot “engaged in unfair or deceptive privacy or data security practices” or harmed consumers through its data collection and publication of false information.

Inside details:

• The 20-page letter the agency sent to the tech firm involves dozens of questions to the company, including how it trains its AI models and treats personal data.

• The open investigation comes less than a year after OpenAI introduced ChatGPT, with FTC chair Lina Khan saying tech companies should be regulated while technologies are nascent instead of already mature.

Why this is big: It’s the 1st major US regulatory threat to OpenAI, and signals the growing global scrutiny around the tech coming from governments and regulatory bodies worldwide.

As one of the biggest in the field, OpenAI has already come under regulatory pressure around the world, including Italy’s data protection authority banning ChatGPT in March.

Think tanks and groups also push for AI’s ethical use; in March, advocacy group Center for AI and Digital Policy asked the FTC to block OpenAI from releasing new commercial versions of ChatGPT as they cited concerns around bias, disinformation, and security.

Chinese regulators roll out landmark rules on AI [Link]

In ramping up its oversight of the rapidly growing tech, the influential Cyberspace Administration of China (CAC) says it has come up with regulations on generative AI and they will come into effect on Aug 15.

The rules include:

• Gen-AI services will need to obtain a license to operate.

• If a gen-AI service provider finds “illegal” content, it should take measures to stop generating that content, improve the algorithm, and then report that material to the relevant authority.

• Providers must conduct security assessments on their product and ensure user information is secure.

While Chinese tech giants have jumped on the gen-AI bandwagon and unveiled plans for launching their own services, China - which tightly controls its local internet via censorship - has voiced concerns around AI potentially going against the country’s ideology.

Thus it remains circumspect about ChatGPT-like services, such as Alibaba’s AI tool available only for enterprise customers on beta.

Roundup: Web3 investments made anew

1. Binance Labs has invested $15M in Xterio to develop its web3 game platform with AI tech, expanding game development capabilities, integrating AI into games, and addressing AI provenance concerns in the web3 ecosystem. In the increasingly competitive space, the partnership seeks to position the two players as leaders in web3 gaming and create transformative token ecosystems and high-quality games.

2. Web3 music platform Sound has raised $20M in funding from venture capital firm Andreessen Horowitz (a16z) to empower artists by allowing them to mint songs as NFTs and sell directly to fans, keeping 100% of their revenue. The funding will enable Sound to expand teams and open its platform to the public.

3. Shima Capital continues to invest in early-stage companies despite industry turmoil. Founder Yida Gao focuses on infrastructure and consumer app deals, especially gaming, with portfolio companies Web3Go, Intuition, and Maverick Protocol. Expressing continuing commitment to web3 founders at the early stage, Shima provides operational support with a proprietary platform.

How the metaverse assists state and local governments [Link]

Governments on state and local levels are exploring the metaverse to enhance citizen services and interactions. By leveraging virtual and augmented reality, IoT, and other advanced tech, cities can create immersive digital experiences and improve planning, operations, and citizen services.

Moreover, the metaverse offers:

• Enhanced citizen engagement and interaction

• Improved urban planning and development

• Immersive resident and tourist experiences for economic growth and investment

• Increased access to government services

• Real-time data analysis for decision-making

• Creation of digital twins for simulations and modeling

Municipalities are utilizing metaverses, such as Orlando, FL creating a virtual model for investors, New York City optimizing traffic flow, and Santa Monica, CA creating a P2E game with rewards.

Security and privacy considerations remain crucial, requiring robust cybersecurity measures and a diverse team to address potential challenges.

Quick Hits

🎮 Gaming

• Super League hypes up Imagine Dragons: Live in Vegas, Hulu Watch Party as the 1st music documentary watch party on Roblox. (Link)

• Hot take: Web3 games don’t need to highlight blockchain elements to succeed. (Link)

• In Canada, Hulk Labs is in the advanced dev phase of creating mobile phone-based web3 video game Astraeus Defense. (Link)

• “Web3 gaming isn’t about making people rich; it’s about allowing them to retain the value of both their time and their money.” - Immutable Games’ CSO Justin Hulog (Link)

• Magnificent Century becomes the 1st Turkish series in the world to enter into The Sandbox metaverse and the 2nd global series after The Walking Dead. (Link)

• Moonstream rolls out its self-serve web3 analytics for blockchain game designers, developers, and marketers. (Link)

🕶 Fashion

• Christie’s and Gucci partner on the new auction, Future Frequencies: Explorations in Generative Art and Fashion. (Link)

• Tommy Hilfiger embarks on web3 again with Tommy Parallel, where garments take the brand’s image to new, future-facing realms, like marshmallow-y puffer jackets and tracksuits swathed in thick rope detailing. (Link)

• Tatler’s 1st AI fashion shoot experiments with text prompts, blends reality with the virtual, and mediates the tie-up between humans and machine. (Link)

• Fashion house La Maison Steel uses NFC to authenticate luxury Apple Watch cuffs. (Link)

• Warehouse by Mudita, based on the outlet-mall concept, finds that the emergence of virtual fitting rooms has added an exhilarating twist to the fashion experience. (Link)

• Collab for fashion: FaceCake utilizes AI and AR in order to let you try clothes on w/o a changing room, before you buy them, while RealmFX makes awesome VFX, as in the things that make Iron Man. (Link)

🏀 Sports

• PUMA launches an AI chess bot modeled after professional football player and global brand ambassador Christian Pulisic. (Link)

• In live soccer production, a new AI-based instant replay tool in Chyron LIVE 1.4 preps highlights for playback. (Link)

• How crypto might take sports sponsorships to the next level. (Link)

• Balldesigner AI makes a go at creating entirely new shapes and designs of sports balls. (Link)

• Pepsi partners globally with EA Sports on “fan-first” football, featuring global ambassadors like Vini Jr (Brazil and Real Madrid) and Leah Williamson (England and Arsenal). (Link)

• India’s Ultimate Table Tennis and metaverse provider Aatral pair up for immersion that harnesses VR, AR, and mixed reality. (Link)

🎥 Media & Entertainment

• Comedians laugh off AI's effect on stand-up: "Like eating processed foods." (Link)

• Associated Press and OpenAI partner to explore generative AI use in news. (Link)

• China's entertainment and media industry is set to pass $479B by 2027. (Link)

• Actors say Hollywood studios want their AI replicas for free forever. (Link)

• CryptoPunk DJ Seedphrase signs up with entertainment label WME with plans to release original music later this year. (Link)

• Web3 entertainment metaverse Sing!Meta, a web3 entertainment Metaverse targets delivering immersive experiences for 100M+ viewers. (Link)

• Italian artist Michele Zanello lives and breathes melodies and metaverses. (Link)

🖼 Art

• Exclusive auction: The Notorious B.I.G.’s legendary THERE CAN ONLY BE ONE photo is up for grabs. (Link)

• Metaverse Art Week returns to Decentraland, featuring 60+ artists and immersive exhibitions. (Link)

• Olyverse and Thyssen-Bornemisza National Museum partner to bring Van Gogh to the metaverse, offering art lovers a new kind of experience. (Link)

• Virtual art fair MESH has immersive digital installations from 33 artists worldwide in store - and more. (Link)

• This new NFT project aims to attract South Korean tourists. (Link)

• The Jackson Pollock Studio releases the NFT collection Beyond the Edge in collaboration with the web3 art collective Iconic Moments. (Link)

🤖 AI

• China unveils provisional rules for generative AI, including a licensing regime. (Link)

• Here’s the Black Mirror plot about AI that worries actors. (Link)

• The Big Mac, fries, maybe the Hamburglar or the Shamrock Shake meet AI? McDonald’s is cooking up generative AI innovation. (Link)

• Can AI deliver for Uber and DoorDash investors as they look to advanced neural networks, user experiences, and logistics with generative AI? (Link)

• AI-supercharged neurotech threatens mental privacy, warns UNESCO. (Link)

• Stability AI releases Stable Doodle, a sketch-to-image tool. (Link)

💸 Funding & Partnerships

• Causaly, an AI platform for drug discovery and biomedical research, raises $60M. (Link)

• Embrace raises $20M to help devs build better mobile games and apps. (Link)

• Simbe’s inventory robots score $28M in funding. (Link)

• Open-source AI model creator Nomic raises $17M led by Coatue. (Link)

• GameOn partners with Professional Fighters League (PFL) to launch next-gen fantasy games. (Link)

• Dypius partners with Conflux network to unveil NFT marketplace and new game update. (Link)

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All content on this newsletter is for informational purposes only and does not aim to serve as or replace expert investment advice.

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