Anthropic, OpenAI, Google and SpaceXAI face lawsuit claiming AI slowdown harms subscribers and violates antitrust laws

midian182

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In a nutshell: Not everyone is happy about the top AI companies agreeing to slow development amid more cases of agents going rogue. A new lawsuit claims Anthropic, OpenAI, SpaceXAI and Google violated antitrust laws when they agreed to a slowdown, and that doing so would reduce the value offered to their subscribers.

The proposed class action was filed on September 18 in the US District Court for the Northern District of California, reports the Associated Press. Four paying users of ChatGPT, Claude, Grok or Gemini are seeking to represent subscribers nationwide.

The complaint points to September 12, when Anthropic CEO Dario Amodei published his call for an industry slowdown, which was backed by Sam Altman, Elon Musk and Google DeepMind's Demis Hassabis. It also cites a July statement acknowledging the "intense competitive pressure not to unilaterally slow" development.

The plaintiffs aren't objecting to individual companies taking their foot off the accelerator for safety reasons. They argue that agreeing to "substitute collective restraint for individual accountability" crosses the line.

In his essay titled We Must Pace the Frontier, Amodei anticipated the antitrust problem, adding that it's helpful for the US government to mediate or at least enable slowdown discussions. He then said the government would need to grant a narrow waiver for certain safety discussions between companies.

Altman, meanwhile, supported federal safety requirements but said work could begin without waiting for legislation or an exemption.

The subscribers' argument is that reduced competition means less progress for their money, even if the firms present the arrangement as a way to keep humanity safe.

There are plenty of incidents that justify those safety concerns. It was recently reported that Google Gemini breached three companies' systems during security tests using guessed passwords and exposed credentials. Google says no damage occurred.

OpenAI's agents started the current crisis when they escaped a test environment and breached Hugging Face, while Claude models accessed three organizations' production systems during evaluations. Another Anthropic model tried to trick a real developer into accepting malicious code. That evaluation deliberately allowed internet access and disabled safeguards against malicious cyber activity to test the models' maximum capabilities.

Meta's model also breached a third-party service during testing by security firm Irregular. The company blamed a testing misconfiguration that allowed the AI to access the internet.

Amodei has also warned that AI botnet swarms could threaten the internet within six to twelve months, potentially causing hundreds of billions of dollars in damage. His argument is that slowing development could buy another year or two to improve safeguards.

"I agree with Dario that we need to pace the frontier," Altman said in backing that proposal.

Washington isn't exactly rushing to apply the brakes. Trump has dismissed AI safety fears as a "hoax", arguing restrictions would benefit Chinese rivals. The government fears that slowing down while competitors keep going will leave them behind, allowing Beijing to erode America's lead in the AI race.

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What a dumb argument. Next up: suing pharma for for wasting time on clinical trials instead of launching new drugs as fast as possible.

Collusion covers the present, not assumed future progress.

Further, the current pricing is subsidized by investors so if anything the reverse of their value argument is happening.
 
Can't help but wonder what everyone is racing toward. Do they even know?

I also wonder what "global AI dominance" translates into, situationally.
 
Devs have been liable for their programs since … forever. The ”restraint” should be the risk of getting sued and put to jail, just like everyone else.
 
What a dumb argument. Next up: suing pharma for for wasting time on clinical trials instead of launching new drugs as fast as possible.

Collusion covers the present, not assumed future progress.

Further, the current pricing is subsidized by investors so if anything the reverse of their value argument is happening.
This lawsuit is not intended to win; it's only intended to become evidence so that AI companies can lobby politicians to usher in regulatory capture. It makes no sense for this kind of lawsuit to happen so quickly. It is part of a coordinated set of stunts surrounding Anthropic to make headlines. So when a senator asks Amodei "why can't you individually regulate yourselves to limit the risks" (the "risks" I think are largely overstated), he can respond "we'll be sued if we try to slow down, and we'll be fined by state legislation if we don't. It's already happened; here are the examples".
Devs have been liable for their programs since … forever. The ”restraint” should be the risk of getting sued and put to jail, just like everyone else.
Being "liable" will never land you in jail. That's a civil matter in the US and will only lose you money. You would have be proven beyond reasonable to have broken a law in order for you to go to jail. Here are some examples of that:
- Bernard Madoff - https://archives.fbi.gov/archives/newyork/press-releases/2009/nyfo062909.htm
- Samuel Bankman-Fried - https://www.justice.gov/archives/op...his-orchestration-multiple-fraudulent-schemes
- Enron CEO - https://www.justice.gov/archives/op...sentenced-168-months-fraud-conspiracy-charges
 
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Technically there isn't any slowdown yet, so there is no crime. I don't think the 4 companies can even be indicted in a conspiracy to commit a crime, because they were clever enough to insinuate communication through public channels.

The good news is the attempt to force the government to endorse a cartel and protect that cartel from competition failed (for now). The bad news is this attempt will likely remain unpunished, and may be repeated again after some suitably staged accidents of GPUs "going rogue".

On a side note, the whole thing is hilarious if you disregard the malicious intent behind it.
We have huge companies working on that for years, screaming
We're going full speed to destroy the world, we realized that last week, we can't stop ourselves, please force us to stop and take responsibility for our actions from now on ... we'll only collect the money
 
My hypothesis is that the coordinated slowdown is really an attempt to stop the AI bubble from bursting from all the capital expenditures with relatively little revenue (compared to the capex) to show for it.

If a company were really worried about safety, they would just pause development of their AI. Would a competitor put out a more capable model? Yes, but if the safety concern were genuine, such a model would also be more dangerous - and the headlines would inevitably accompany it.

So no, I don't think there's a genuine safety concern behind the coordinated AI slowdown. The antitrust lawsuit is probably the right move for consumers, those arguing we need to keep ahead of China, and, possibly, for those hoping for a bubble burst. Just my hypothesis.
 
Between Amodei's "We Must Control the Frontier", calls for taxpayer funded bailouts (too big to fail bank argument) and this lawsuit, the Tech Bro's are pushing for governmental intervention. The bubble has to burst at some point. And they are going to play the blame game when that happens.
 
"We need the government to slow us down!".

"Fine, how about this. You are legally responsible for any harm caused by your models. You are also to pay fair value to content owners for any information that is used for the purpose of model training".

Will never happen of course, but shows how ridiculous their request is after years of blatant copyright theft and environmental regulation violations. As others have said, this is pure cartel behaviour designed to slow the capital burn and block future competitors from entering the market.
 
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