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Meta and Character.AI’s “therapist bots” are practicing without a license, advocates tell regulators

The artificial-intelligence-powered “therapy bots” are providing critical care without a license, nearly two dozen consumer advocacy groups told the Federal Trade Commission and attorneys general in all 50 states and Washington, DC.

The Thursday complaint, first reported on by 404 Media, says chatbots on Meta and Character.AI allege they are credentialed therapists. Generally, when a human impersonates a mental health professional, that’s considered a crime.

Not only did the chatbots lie about being licensed — some even provided fake license numbers — they also lied about complying with HIPAA, the groups say. “Confidentiality is asserted repeatedly directly to the user, despite explicit terms to the contrary in the Privacy Policy and Terms of Service,” the complaint says.

AI therapist screenshot
(Screenshot from the complaint)

Chatbots, even when they aren’t trying to do the work of a licensed professional, are imperfect. They often hallucinate, which doesn’t pair well with their tendency to speak on topics with authority. In a research paper last year, one of Meta’s chatbots posing as a therapist tried to convince a recovering addict to relapse.

It’s not the first time Character.AI has had to reckon with the actions of its chatbots either. Last year, the company was sued by a mother who believed its chatbots were responsible for her son’s death.

Not only did the chatbots lie about being licensed — some even provided fake license numbers — they also lied about complying with HIPAA, the groups say. “Confidentiality is asserted repeatedly directly to the user, despite explicit terms to the contrary in the Privacy Policy and Terms of Service,” the complaint says.

AI therapist screenshot
(Screenshot from the complaint)

Chatbots, even when they aren’t trying to do the work of a licensed professional, are imperfect. They often hallucinate, which doesn’t pair well with their tendency to speak on topics with authority. In a research paper last year, one of Meta’s chatbots posing as a therapist tried to convince a recovering addict to relapse.

It’s not the first time Character.AI has had to reckon with the actions of its chatbots either. Last year, the company was sued by a mother who believed its chatbots were responsible for her son’s death.

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OpenAI inks $38 billion deal with Amazon for compute

Amazon managed to pull off its monster quarter without any of those juicy OpenAI deals on its books that many of its competitors had. But now it too has one. The company’s stock, which vaulted on its earnings report last week, jumped 5% in early trading.

The ChatGPT maker has signed a $38 billion multiyear deal with Amazon Web Services to use its compute and reduce its reliance on Microsoft.

Amazon CEO Andy Jassy hinted at the as yet announced deal on the company’s earnings call last week when he described the company’s massive backlog of AWS business:

“Backlog grew to $200 billion by Q3 quarter end, and doesn’t include several unannounced new deals in October, which together are more than our total deal volume for all of Q3. AWS is gaining momentum.”

The deal notes that the agreement calls for “hundreds of thousands of state-of-the-art Nvidia GPUs.” Notably, this deal does not appear to use Amazon’s Trainium chips, which it has been pushing as part of its massive Project Rainier. The initiative will run 500,000 of the custom chips.

In a press release announcing the deal, OpenAI CEO Sam Altman said:

“Scaling frontier AI requires massive, reliable compute. Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”

In a post on X, Jassy said the deal takes effect right away:

“OpenAI will start using AWS’s infrastructure immediately and we expect to have all of the capacity deployed before end of next year-- with the ability to expand in 2027 and beyond.”

Amazon CEO Andy Jassy hinted at the as yet announced deal on the company’s earnings call last week when he described the company’s massive backlog of AWS business:

“Backlog grew to $200 billion by Q3 quarter end, and doesn’t include several unannounced new deals in October, which together are more than our total deal volume for all of Q3. AWS is gaining momentum.”

The deal notes that the agreement calls for “hundreds of thousands of state-of-the-art Nvidia GPUs.” Notably, this deal does not appear to use Amazon’s Trainium chips, which it has been pushing as part of its massive Project Rainier. The initiative will run 500,000 of the custom chips.

In a press release announcing the deal, OpenAI CEO Sam Altman said:

“Scaling frontier AI requires massive, reliable compute. Our partnership with AWS strengthens the broad compute ecosystem that will power this next era and bring advanced AI to everyone.”

In a post on X, Jassy said the deal takes effect right away:

“OpenAI will start using AWS’s infrastructure immediately and we expect to have all of the capacity deployed before end of next year-- with the ability to expand in 2027 and beyond.”

tech

Tesla sales fell in several European countries in October, including an 89% drop in Sweden

On the heels of Tesla’s record delivery quarter, early data from Europe suggests the bad news that has plagued the EV maker on the continent for much of the year is continuing. Tesla sales fell drastically in October in Sweden, Denmark, and Norway, according to Reuters, while rising slightly in France compared with a year earlier.

Tesla continues to face political backlash in Europe for CEO Elon Musk’s involvement in far-right political campaigns there, as well as from steep competition from rivals like BYD and legacy European brands making the switch to EVs.

Of course, sales in what Musk has called Tesla’s “weakest market” weren’t very robust to begin with. In Sweden, for example, Tesla sales fell nearly 90% to just 133 vehicles, “lagging not just mainstream brands but also luxury German automaker Porsche,” Reuters said.

Tesla continues to face political backlash in Europe for CEO Elon Musk’s involvement in far-right political campaigns there, as well as from steep competition from rivals like BYD and legacy European brands making the switch to EVs.

Of course, sales in what Musk has called Tesla’s “weakest market” weren’t very robust to begin with. In Sweden, for example, Tesla sales fell nearly 90% to just 133 vehicles, “lagging not just mainstream brands but also luxury German automaker Porsche,” Reuters said.

tech

Amazon closes at all-time high

Fresh off strong earnings Thursday, Amazon saw its stock price end the week at a record closing high of $244.22.

The stock is up 10% so far this year.

The e-commerce and cloud giant beat analysts’ revenue and earnings, and its massive gain was responsible for more than all of the positive return delivered by the SPDR S&P 500 ETF on Friday.

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