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WSJ Tech News Briefing

Startup ‘Fake It’ Culture Isn’t an Excuse for Fraud, Says SEC

WSJ Tech News Briefing

The Wall Street Journal

Tech News, News

4.31.7K Ratings

🗓️ 4 October 2024

⏱️ 12 minutes

🧾️ Download transcript

Summary

Regulators are sending a message to startups that “fake it till you make it” isn't an excuse for fraud. WSJ Pro Venture Capital reporter Marc Vartabedian joins host Zoe Thomas to discuss how the Securities and Exchange Commission is trying to crack down on startups misleading or defrauding investors. Plus, large AI models are trained on vast amounts of data but may still lack deep, industry-specific knowledge that companies need. Sign up for the WSJ's free Technology newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

exchanges, the Goldman Sachs podcast featuring exchanges on rates, inflation and US

0:11.2

recession risk exchanges on the market impact of AI.

0:15.0

For the sharpest analysis on forces driving the markets and the economy

0:20.0

count on exchanges between the leading minds at Goldman Sachs.

0:24.0

New episodes every week.

0:26.0

Listen now. Welcome to Tech News Briefing. It's Friday, October 4th. I'm Zoe Thomas for the Wall Street Journal.

0:41.0

Off-the-shelf large language artificial intelligence models like ChatGPT and Claude know a lot, but maybe not what companies need them to know.

0:51.0

That's forcing companies to augment today's general models

0:55.6

with industry or business specific information to make them useful. We'll tell

1:00.9

you more. And then Silicon Valley's startup culture loves a good motto.

1:07.0

Move fast and break things, ask forgiveness, not permission,

1:11.0

startups that win, keep winning. But financial regulators are sending a message that

1:16.8

fake it till you make it isn't an excuse for fraud. Our reporter Mark Vardabedian is going to tell us about the efforts to crack down on startups misleading or defrauding investors.

1:30.0

But first, generative AI's foundation models can be trained on vast troves of online data,

1:37.3

but still lack deep specific knowledge even on mainstream topics. That means companies have to take additional steps to make these models

1:46.0

more useful. Here to tell us more is W.S.J. C.O. Journal reporter Isabel Busquet.

1:52.2

So Isabel, you write in your story that today's AI models are

1:57.0

about as useful out of the box as a new employee entering orientation.

2:02.0

Why is that? The models know and

2:05.3

understand the information they've been trained on and they've been trained on a

2:11.2

ton of information all this stuff that's publicly available on the internet

2:16.6

they've been trained on.

...

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