Efforts to Rein In AI Tap Lesson From Social Media: Don’t Wait Until It’s Too Late
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Efforts to Rein In AI Tap Lesson From Social Media: Don’t Wait Until It’s Too Late

Activists and officials race to shape rules and public understanding of new artificial intelligence tools

By DEEPA SEETHARAMAN
Tue, Jul 18, 2023 8:38amGrey Clock 4 min

Social media was more than a decade old before efforts to curb its ill effects began in earnest. With artificial intelligence, lawmakers, activists and executives aren’t waiting that long.

Over the past several months, award-winning scientists, White House officials and tech CEOs have called for guardrails around generative AI tools such as ChatGPT—the chatbot launched last year by Microsoft-backed startup OpenAI. Among those at the table are many veterans of the continuing battle to make social media safer.

Those advocates view the AI debate as a fresh chance to influence how companies make and market their products and to shape public expectations of the technology. They aim to move faster to shape the AI landscape and learn from errors in the fight over social media.

“We missed the window on social media,” said Jim Steyer, chief executive of Common Sense Media, a child internet-safety organisation that has for years criticised social-media platforms over issues including privacy and harmful content. “It was late—very late—and the ground rules had already been set and industry just did whatever it wanted to do.”

Activists and executives alike are pushing out a range of projects and proposals to shape understanding and regulation to address issues including AI’s potential for manipulation, misinformation and bias.

Common Sense is developing an independent AI ratings and reviews system that will assess AI products such as ChatGPT on their handling of private data, suitability for children and other factors. The nonprofit plans to launch the system this fall and spend between $5 million and $10 million a year on top of its $25 million budget to fund the project.

Other internet advocacy groups including the Mozilla Foundation are also building their own open-source AI tools and investing in startups that say they are building responsible AI systems. Some firms initially focused on social media are now trying to sell services to AI companies to help their chatbots avoid churning out misinformation and other harmful content.

Tech companies are racing to influence regulation, discussing it with global governments that are both wary of AI and eager to capitalise on its opportunities. In early May, President Biden met with the chief executives of companies including OpenAI, Microsoft and Google at the White House. OpenAI CEO Sam Altman has spent weeks meeting with lawmakers and other leaders globally to discuss AI’s risks and his company’s idea of safe regulation.

Altman and Microsoft President Brad Smith have both argued for a new regulatory agency that would license large AI systems. Tesla CEO Elon Musk, who on Wednesday announced the official launch of his new AI startup, said in May that the government should convene an independent oversight committee, potentially including industry executives, to create rules that ensure AI is developed safely.

The Federal Trade Commission also is taking a hard look at AI. It is investigating whether OpenAI has “engaged in unfair or deceptive practices” stemming from false information published by ChatGPT, according to a civil subpoena made public this past week. Altman said OpenAI is confident that it follows the law and “of course we will work with the FTC.”

Looming large over all this activity is the growing feeling among many activists and lawmakers that years of efforts to regulate or otherwise change social-media companies including Facebook parent Meta Platforms, Twitter and TikTok were unsatisfactory. Facebook was founded in 2004 and Twitter in 2006, but widespread discussion about regulation didn’t really take off until after discoveries of Russian interference and other issues in the 2016 U.S. election.

“Congress failed to meet the moment on social media,” Democratic Sen. Richard Blumenthal said during a congressional hearing on AI in May. “Now we have the obligation to do it on AI before the threats and the risks become real.”

Though social-media executives in recent years called for more regulation, no new U.S. federal laws have been set that require companies to protect users’ privacy and data or that update the nearly three-decade-old rules for how platforms police content. In part that is because of disagreements among lawmakers over whether companies should do more to moderate what is said on their platforms or whether they already have overstepped into stifling free speech.

Some of the activists who are veterans of those battles say two major lessons from this era are that the companies can’t be trusted to self-regulate and that the federal government is too gridlocked to pass meaningful legislation. “There’s a massive void,” Steyer of Common Sense Media said.

Yet he and others say they are encouraged by the willingness of AI companies to discuss major issues.

“We’re seeing some of the people from trust and safety teams from social media are now at AI companies,” said L. Gordon Crovitz, co-founder of NewsGuard, a company that tracks and rates news sites. Crovitz, former publisher of The Wall Street Journal, says these people seem much more empowered in their current roles. “The body language is ‘we’ve been freed.’”

Large language models such as GPT-4 are trained on anything that can be scraped from the internet, but the data contain large chunks of hate speech, misinformation and other harmful content. So these models are further refined after their initial training to weed out some of that bad content in a process called fine-tuning.

NewsGuard has been talking to AI companies about licensing its data—which Crovitz calls a “catalog of all the important false narratives that are out there”—for fine-tuning and to bolster AI models’ guardrails against producing just those types of misinformation and false narratives.

Ravi Iyer, a former product manager for Meta, is now at the University of Southern California’s Marshall School of Business and developing a poll that tracks how people experience AI systems. He hopes the poll will influence how AI companies design and deploy their products.

“We need to know that’s a choice platforms can make and reward them for not making the wrong choices,” Iyer said.

The Mozilla Foundation, a nonprofit that builds the Firefox internet browser, said it is building open-sourced models as alternatives to large private AI models. “We need to build alternatives and not just advocate for them,” Mark Surman, Mozilla’s president, said.

Steyer described the AI ratings system being built at Common Sense as the most ambitious in the nonprofit’s history. Tracy Pizzo Frey, a consultant who previously worked for Google and is helping craft the system, said there is no set way to evaluate the safety of AI tools.

So far, Common Sense is looking at seven factors, including how transparent companies are about what their systems can do and where they still have shortcomings. The nonprofit may factor in how much information companies provide about their training data, which companies including OpenAI view as competitive secrets.

Frey said Common Sense won’t ask for proprietary data but needs information that helps parents and educators make informed decisions about the use of AI. “There are no rules around what transparency looks like,” Frey said.



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Wall Street Is Counting on Nvidia to Keep the AI Party Going

Nvidia’s earnings will test Wall Street’s confidence in the AI boom.

By David Uberti and Krystal Hur
Mon, Aug 24, 2026 3 min

Chip makers are fighting to assure investors that the artificial-intelligence boom is racing forward. Wall Street might not believe it until Nvidia’s NVDA -0.98%decrease; down pointing triangle Jensen Huang says so.

When Huang steps up to the mic for his company’s earnings call Wednesday, he will have the world’s attention. What he says about Nvidia’s present will preview the future of AI, dictate the path forward for a tech-crazed stock market and influence an American economy increasingly tethered to hopes that the boom won’t go bust.

The $5 trillion chip maker has provided the key building blocks for AI since the launch of ChatGPT in 2022 set off a race for dominance among OpenAI, Anthropic and established Silicon Valley giants. Now, as Nvidia backstops sprawling data-center projects and an exotic money pipeline to boost chip demand, the company’s influence is arguably bigger than ever.

But there are signs of trouble ahead. Political pushback to AI is growing. A bond selloff propelled borrowing costs to their highest levels in years. The hyperscalers that include some of Nvidia’s key customers—once cash-printing machines—are relying more on debt. OpenAI recently told investors its revenue rose by a tepid 18% in the second quarter while its losses deepened.

Nvidia is increasingly stepping in to shore up potential weak points across the market. Earlier this month, the company teamed up with six of Wall Street’s biggest firms on a $500 billion AI-financing plan, pledging to backstop lending to customers that can’t afford its chips otherwise. The chip maker last week also took a stake in Cloverleaf Infrastructure, which arranges power for data centers, and struck a $6 billion deal with startup Poolside aimed at developing a powerful open-weight AI model.

After watching shares in other chip makers and the so-called Magnificent Seven tech companies swing wildly in recent months, Wall Street is hoping Nvidia can beat expectations—again. The countdown is on.

“It’s kind of becoming more and more like the World Cup final than the Super Bowl at this point,” said Brian Mulberry, chief market strategist at Zacks Investment Management. “It’s just gotten to be that big.”

The company has smashed analysts’ earnings estimates for each of the 14 quarters since the AI boom kicked into high gear. Nvidia posted 210% annual growth in net income in its last three-month period, according to FactSet, making Wall Street’s 126% projection look pedestrian.

Expectations for a blowout second quarter have risen rapidly over the course of this year. All Nvidia will have to do to beat this target: outrun 95% annual earnings growth to more than $51.5 billion. Analysts project the chip maker will report record sales of $92 billion for the period, up from a forecast of $78 billion at the start of this year.

In July, big-tech earnings sparked volatility. Concerns about runaway capital spending spread across the sector after Alphabet’s and Tesla’s results, driving a $890 billion wipeout that contributed to the unwind of hedge fund Situational Awareness. Microsoft posted the largest one-day gain in market capitalization by any company, ever, after a quarter proving that it could still show investors the money. SpaceX rocketed higher after a record-breaking initial public offering, only to see $1 trillion in value evaporate.

Surging memory prices and borrowing costs have fueled fears that those and other companies will be unable to keep plowing more money into supplies including Nvidia chips. Shaia Hosseinzadeh, founder of OnyxPoint Global Management, has recently bought dips in AI-infrastructure stocks when Wall Street has strained to absorb massive debt issued by Silicon Valley.

“The macro data is really quite robust,” he said. “Of course, there’s a level at which everything breaks.”

Investors have kept pumping money into the AI trade despite concerns around chip consumers—and to the benefit of chip producers. That is why Nvidia’s outlook for semiconductor demand could send ripples through counterparts such as Micron Technology and Sandisk, developers of the data centers in which their chips reside, and a supply chain of power producers, contractors and other specialists that underpin the globe-spanning AI build-out.

“We joke internally that we’re all Nvidia analysts now,” said David Lefkowitz, head of U.S. equities at UBS Global Wealth Management.

The irony is that investors have tended to sell Nvidia stock immediately after blockbuster earnings, with shares falling each trading session after its four past quarterly reports. Some are betting that will be the case this time around, too.

The options market is pricing in a 5.3% swing, higher or lower, in Nvidia shares during the session following earnings, according to Option Research & Technology Services. That is higher than the 4.8% average move in Nvidia’s stock over the last 12 months after the company reports quarterly results.

In recent days, some of the most actively traded Nvidia options have been put contracts tied to the stock falling from its Friday value of $214.75 to $205 and $210 apiece, according to Cboe Global Markets data. Put options give the right to sell a stock by a set price and typically represent a bearish wager.

Many analysts remain optimistic. Frank Lee, global head of tech hardware and semiconductor research at HSBC Global Investment Research, recently raised his price target for Nvidia shares to $360 from $325, citing, among other things, Nvidia’s strategic partnerships with suppliers and its role as a top contributor to open-source AI.

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