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Rani Molla

California judge rules that Tesla has to rename “Autopilot” because it’s misleading

The California Department of Motor Vehicles ruled Tuesday that Tesla violated state law by marketing its driver assistance features using “misleading” terms like “Autopilot” and “Full Self-Driving Capability.”

The DMV adopted an administrative law judge’s findings but softened some of the penalties: instead of suspending Tesla’s manufacturing license, the agency is giving the company 60 days to revise how it uses the term “Autopilot.” If it doesn’t, Tesla could be barred from selling cars in California, its largest US market, for 30 days.

Regulators said Tesla’s marketing suggested something much closer to autonomy — including claims that its system could “conduct short and long-distance trips with no action required by the person in the driver’s seat” — even though the features still require active driver supervision. “...vehicles equipped with those ADAS features could not at the time of those advertisements, and cannot now, operate as autonomous vehicles,” the agency wrote. After the DMV filed accusations against the company in November 2023, Tesla already discontinued use of the term “Full Self-Driving Capability,” replacing it with “Full Self-Driving (Supervised),” and now it must find something else to call “Autopilot.”

Tesla is currently testing its Austin Robotaxis, which use versions of its FSD software, without a safety monitor.

Regulators said Tesla’s marketing suggested something much closer to autonomy — including claims that its system could “conduct short and long-distance trips with no action required by the person in the driver’s seat” — even though the features still require active driver supervision. “...vehicles equipped with those ADAS features could not at the time of those advertisements, and cannot now, operate as autonomous vehicles,” the agency wrote. After the DMV filed accusations against the company in November 2023, Tesla already discontinued use of the term “Full Self-Driving Capability,” replacing it with “Full Self-Driving (Supervised),” and now it must find something else to call “Autopilot.”

Tesla is currently testing its Austin Robotaxis, which use versions of its FSD software, without a safety monitor.

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OpenAI reportedly delaying erotica feature to focus on “gains in intelligence”

OpenAI is delaying its planned “adult mode,” as it seeks to shore up ChatGPT’s core capabilities before the chatbot can generate erotic content.

A source within OpenAI told tech news site Sources that the company will miss its Q1 target for launching the feature:

“We’re pushing out the launch of adult mode so we can focus on work that is a higher priority for more users right now, including gains in intelligence, personality improvements, personalization, and making the experience more proactive.”

The company said it still believes in “treating adults like adults,” but said it wants to get the experience right. OpenAI has been testing user age estimation technology ahead of the planned release.

“We’re pushing out the launch of adult mode so we can focus on work that is a higher priority for more users right now, including gains in intelligence, personality improvements, personalization, and making the experience more proactive.”

The company said it still believes in “treating adults like adults,” but said it wants to get the experience right. OpenAI has been testing user age estimation technology ahead of the planned release.

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Anthropic will sue the Pentagon over supply chain risk designation, Amodei says

Anthropic CEO Dario Amodei said in a public post that the company will sue the Pentagon after receiving a letter from the Department of Defense officially designating Anthropic as “a supply chain risk to America’s national security.”

Amodei says that the effect of the unprecedented designation for an American company is more narrow than originally described, and that most of its customers would not be affected.

“With respect to our customers, it plainly applies only to the use of Claude by customers as a direct part of contracts with the Department of War, not all use of Claude by customers who have such contracts.”

Amodei says the company does not “believe this action is legally sound, and we see no choice but to challenge it in court.”

The CEO also apologized for statements he made in a leaked internal memo in which he claimed that the company was targeted because it didn’t show “dictator-style praise” for President Trump.

“With respect to our customers, it plainly applies only to the use of Claude by customers as a direct part of contracts with the Department of War, not all use of Claude by customers who have such contracts.”

Amodei says the company does not “believe this action is legally sound, and we see no choice but to challenge it in court.”

The CEO also apologized for statements he made in a leaked internal memo in which he claimed that the company was targeted because it didn’t show “dictator-style praise” for President Trump.

$40B💰

SoftBank is going to great lengths to double down on OpenAI — including taking on significant debt. After completing a $40 billion investment to become one of the ChatGPT maker’s largest backers, the Japanese conglomerate is now seeking a roughly $40 billion loan with a 12-month term, Bloomberg reports.

The financing would be SoftBank’s largest-ever dollar-denominated deal. The AI investment has helped lift profits, but it is also pressuring SoftBank’s credit profile.

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