Skip to main content

Insurers Balk At Paying Out Huge Settlements For Claims Against AI Firms

2 months 3 weeks ago
An anonymous reader quotes a report from the Financial Times: OpenAI and Anthropic are considering using investor funds to settle potential claims from multibillion-dollar lawsuits, as insurers balk at providing comprehensive coverage for the risks associated with artificial intelligence. The two US-based AI start-ups have traditional business insurance coverage in place, but insurance professionals said AI model providers will struggle to secure protection for the full scale of damages they may need to pay out in the future. OpenAI, which has tapped the world's second-largest insurance broker Aon for help, has secured cover of up to $300 million for emerging AI risks, according to people familiar with the company's policy. Another person familiar with the policy disputed that figure, saying it was much lower. But all agreed the amount fell far short of the coverage to insure against potential losses from a series of multibillion-dollar legal claims. [...] Two people with knowledge of the matter said OpenAI has considered "self insurance," or putting aside investor funding in order to expand its coverage. The company has raised nearly $60 billion to date, with a substantial amount of the funding contingent on a proposed corporate restructuring. One of those people said OpenAI had discussed setting up a "captive" -- a ringfenced insurance vehicle often used by large companies to manage emerging risks. Big tech companies such as Microsoft, Meta, and Google have used captives to cover Internet-era liabilities such as cyber or social media. Captives can also carry risks, since a substantial claim can deplete an underfunded captive, leaving the parent company vulnerable. OpenAI said it has insurance in place and is evaluating different insurance structures as the company grows, but does not currently have a captive and declined to comment on future plans.

Read more of this story at Slashdot.

BeauHD

Salesforce Says It Won't Pay Extortion Demand in 1 Billion Records Breach

2 months 3 weeks ago
Salesforce says it's refusing to pay an extortion demand made by a crime syndicate that claims to have stolen roughly 1 billion records from dozens of Salesforce customers. From a report: The threat group making the demands began their campaign in May, when they made voice calls to organizations storing data on the Salesforce platform, Google-owned Mandiant said in June. The English-speaking callers would provide a pretense that necessitated the target connect an attacker-controlled app to their Salesforce portal. Amazingly -- but not surprisingly -- many of the people who received the calls complied. [...] Earlier this month, the group created a website that named Toyota, FedEx, and 37 other Salesforce customers whose data was stolen in the campaign. In all, the number of records recovered, Scattered LAPSUS$ Hunters claimed, was "989.45m/~1B+." The site called on Salesforce to begin negotiations for a ransom amount "or all your customers [sic] data will be leaked." The site went on to say: "Nobody else will have to pay us, if you pay, Salesforce, Inc." The site said the deadline for payment was Friday.

Read more of this story at Slashdot.

msmash

Cisco’s new router unites disparate datacenters into AI training behemoths

2 months 3 weeks ago
With enough routers, Switchzilla says it can link bit barns 1,000 km apart and scale fabrics beyond 3 exabits per second

Cisco has unveiled a new routing ASIC designed to help bit barn operators overcome power and capacity constraints by stitching together their existing datacenters into a single unified compute cluster.…

Tobias Mann

National Security Threatened By Climate Crisis, UK Intelligence Chiefs Due To Warn

2 months 3 weeks ago
The UK's national security is under severe threat from the climate crisis and the looming collapse of vital natural ecosystems, with food shortages and economic disaster potentially just years away, a powerful report by the UK's intelligence chiefs is due to warn. The Guardian: However, the report, which was supposed to launch on Thursday at a landmark event in London, has been delayed, and concerns have been expressed to the Guardian that it may have been blocked by number 10. The destabilising impact of the climate and nature crises on national security is one of the biggest risks facing Britain, the joint intelligence committee report is understood to say. Already, food import supply chains are coming under pressure, with the price of some commodities increasing. This could be exacerbated in the near future, the defence experts have warned, with the UK over-dependent on imports. Other industries will also be affected by ecosystem collapse in places such as the Amazon and by the worsening impacts of extreme weather around the world. These impacts will not be encountered far off in the future as some had complacently assumed, ministers have been told, but are already being felt and will grow in significance as temperatures rise beyond 1.5C above preindustrial levels. The hard-hitting report was to be published on Thursday at a landmark event in London. But the Guardian understands that the report, prepared by experts over many months, has been halted.

Read more of this story at Slashdot.

msmash