OpenAI Warns on Chinese AI Cybersecurity Risks, Favors Western Alternatives

At the International AI Summit in Dublin, OpenAI’s Chief Financial Officer Sarah Friar cautioned businesses against adopting Chinese artificial intelligence models due to cybersecurity concerns. She emphasized that companies should weigh safety and security trade-offs when using such models.

Friar expressed her preference for Western alternatives on the cyber front, stating that they are more secure than their Chinese counterparts. This stance echoes similar concerns raised by rival Anthropic PBC, which has warned about the risks associated with open-source AI models.

Anthropic’s head of international, Guillaume Princen, highlighted the potential dangers of open-source models during a conversation at the same summit. He noted that users need to be cautious when using such models due to their inherent safety risks. While he acknowledged that there are more risks associated with open-source models by definition, he stopped short of commenting on closed models.

The comments from Friar and Princen come as Chinese AI developers have been releasing open-weight models that are generally cheaper than top offerings from U.S. companies. These models can be downloaded and run on users’ own hardware, making them a competitive option for many tasks. According to Bloomberg, Chinese releases account for the largest share of generative model downloads on the hosting platform Hugging Face.

Friar also addressed the issue of competitive pressure from China, stating that U.S. companies should not slow their AI releases too sharply. OpenAI has held back some models to meet internal safety standards, but Friar argued that excessive restraint could create an imbalance in who controls the most capable tools. She emphasized the need for a balanced approach to ensure that users have access to secure and reliable AI solutions.

During her conversation with Bloomberg Television, Friar also disclosed that OpenAI reached annualized revenue of ‘close to $50 billion’ in the third quarter. The company is expecting to reach or exceed $70 billion in annualized revenue by year-end. This growth reflects the increasing demand for AI technology and services worldwide.

Friar’s comments on security were also notable, as she addressed the recent arrest of an OpenAI employee charged with using a hidden recording device in one of the company’s offices. She expressed gratitude to her team for their efforts in resolving the matter and emphasized that security is a top priority at OpenAI.