Tech
TOPSHOT-US-TECHNOLOGY-AI-MICROSOFT-COMPUTERS
OpenAI CEO Sam Altman (Jason Redmond/AFP via Getty Images)
fabrications

AI used to transcribe medical visits is having wild and sometimes spooky “hallucinations”

The OpenAI tool sometimes adds made-up, unsettling details.

Jon Keegan

“ChatGPT can make mistakes. Check important info,” reads a warning at the bottom of OpenAI’s ChatGPT 4o chat interface.

That message is there because many of today’s AI tools are prone to “hallucinations,” where incorrect or “imagined” facts are included in a response to the user.

That may not matter much if it invents an extra ingredient for the chocolate-chip cookie recipe you asked for (even if it recommends adding glue to your pizza), but if you’re using an AI tool to help with more critical tasks — such as transcribing medical interviews — the results could be disastrous.

A new investigation by the AP found that OpenAI’s Whisper text-transcription tool is being widely used for medical transcription, despite the fact that it’s been found to hallucinate “racial commentary, violent rhetoric, and even imagined medical treatments,” according to the report. And considering how many medical professionals are using the tool, researchers found a troubling rate of hallucinations.

The problems persist even in well-recorded, short audio samples. A recent study by computer scientists uncovered 187 hallucinations in more than 13,000 clear audio snippets they examined.

That trend would lead to tens of thousands of faulty transcriptions over millions of recordings, researchers said.

OpenAI warns against using Whisper in “high-risk domains,” but that has not stopped its use in healthcare software like Nabla, which has been used to transcribe an estimated 7 million medical visits, according to the report, which included the following example:

A speaker said, “He, the boy, was going to, I’m not sure exactly, take the umbrella.”

But the transcription software added: “He took a big piece of a cross, a teeny, small piece ... I’m sure he didn’t have a terror knife so he killed a number of people.”

Adding to the problem is that Nabla deletes the original recordings of the interviews for “data safety reasons,” leaving no mechanism for verifying the transcriptions.

More Tech

See all Tech
Multicolor Sticks

OpenAI is shipping everything. Anthropic is perfecting one thing.

The two AI titans are in a race to grow revenues, but they have very different strategies for releasing products. And one approach appears to be winning out.

73%

Here’s another sign Anthropic’s enterprise tools are killing it: The AI firm now captures 73% of all spending among companies buying AI tools for the first time, Axios reports, citing data from Ramp, a fintech company that provides corporate cards and expense management software. That’s up from 50% in January, when it was tied with OpenAI.

As we’ve noted, Big Tech is pivoting from experimentation to revenue — and enterprise is where that shift is playing out.

tech

Microsoft considers suing Amazon and OpenAI over $50 billion deal

Microsoft may be about to take its biggest AI partner to court, the Financial Times reports.

Microsoft, a longtime backer of OpenAI, is weighing legal action over the latter’s $50 billion deal with Amazon tied to its new Frontier AI product, arguing it could violate a key clause in their exclusive cloud deal requiring OpenAI’s models to run through Azure. Amazon and OpenAI say they’ve found a workaround. Microsoft executives disagree.

“We know our contract,” a source told the FT. “We will sue them if they breach it. If Amazon and OpenAI want to take a bet on the creativity of their contractual lawyers, I would back us, not them.”

OpenAI, which is eyeing an IPO this year and under pressure to generate more revenue, is trying to loosen Microsoft’s grip as it scales, while Microsoft increasingly sees OpenAI as both a partner and competitor.

“We know our contract,” a source told the FT. “We will sue them if they breach it. If Amazon and OpenAI want to take a bet on the creativity of their contractual lawyers, I would back us, not them.”

OpenAI, which is eyeing an IPO this year and under pressure to generate more revenue, is trying to loosen Microsoft’s grip as it scales, while Microsoft increasingly sees OpenAI as both a partner and competitor.

tech

Morgan Stanley says robotaxis could help Tesla sell more cars

Morgan Stanley analysts think Tesla’s robotaxi push could boost more than just a new business line — it could help sell more cars and software, too.

After visiting Giga Texas, analysts said they’re more optimistic about Tesla’s progress toward an unsupervised robotaxi rollout, with improvements in tricky pickup and drop-off scenarios where Tesla doesn’t have as much data from consumer usage. For now, the vast majority of its vehicles still have human supervisors in the front seat, but the analysts say the service is helping Tesla.

“Incremental unsupervised robotaxi miles driven improve the underlying autonomy model, which accelerates the path to personal unsupervised FSD [Full Self-Driving]. This, in turn supports higher FSD attach rates, improves auto demand, and cash flow generation.”

In other words, the more robotaxis drive, the better Tesla’s self-driving gets — and that could make its Full Self-Driving software more appealing and its cars easier to sell, in addition to improving its robotaxi service. Note that Tesla’s vehicle deliveries, which accounts for the lion’s share of the company’s revenue, have dropped two years in a row.

Morgan Stanley also sees a cost advantage. It estimates Tesla’s robotaxis could cost about $0.81 per mile to run today — cheaper than traditional ride-hailing and rival autonomous services — with costs falling further as purpose-built vehicles like the Cybercab scale.

Morgan Stanley maintained its equal-weight rating and $415 price target, about 4% above where the stock is currently trading.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Derivatives, LLC, or Robinhood Money, LLC. Futures and event contracts are offered through Robinhood Derivatives, LLC.