Technologies

Computing Guru Criticizes ChatGPT AI Tech for Making Things Up

Vint Cerf, who helped create the internet’s core network technology, hopes engineers can improve artificial intelligence’s shortcoming.

Vint Cerf, one of the founding fathers of the internet, has some harsh words for the suddenly hot technology behind the ChatGPT AI chatbot: “Snake oil.”

Google’s internet evangelist wasn’t completely down on the artificial intelligence technology behind ChatGPT and Google’s own competing Bard, called a large language model. But, speaking Monday at Celesta Capital’s TechSurge Summit, he did warn about ethical issues of a technology that can generate plausible sounding but incorrect information even when trained on a foundation of factual material.

If an executive tried to get him to apply ChatGPT to some business problem, his response would be to call it snake oil, referring to bogus medicines that quacks sold in the 1800s, he said. Another ChatGPT metaphor involved kitchen appliances.

“It’s like a salad shooter — you know how the lettuce goes all over everywhere,” Cerf said. “The facts are all over everywhere, and it mixes them together because it doesn’t know any better.”

Cerf shared the 2004 Turing Award, the top prize in computing, for helping to develop the internet foundation called TCP/IP, which shuttles data from one computer to another by breaking it into small, individually addressed packets that can take different routes from source to destination. He’s not an AI researcher, but he’s a computing engineer who’d like to see his colleagues improve AI’s shortcomings.

OpenAI’s ChatGPT and competitors like Google’s Bard hold the potential to significantly transform our online lives by answering questions, drafting emails, summarizing presentations and performing many other tasks. Microsoft has begun building OpenAI’s language technology into its Bing search engine in a significant challenge to Google, but it uses its own index of the web to try to “ground” OpenAI’s flights of fancy with authoritative, trustworthy documents.

Cerf said he was surprised to learn that ChatGPT could fabricate bogus information from a factual foundation. “I asked it, ‘Write me a biography of Vint Cerf.’ It got a bunch of things wrong,” Cerf said. That’s when he learned the technology’s inner workings — that it uses statistical patterns spotted from huge amounts of training data to construct its response.

“It knows how to string a sentence together that’s grammatically likely to be correct,” but it has no true knowledge of what it’s saying, Cerf said. “We are a long way away from the self-awareness we want.”

OpenAI, which earlier in February launched a $20 per month plan to use ChatGPT, has been clear about about the technology’s shortcomings but aims to improve it through “continuous iteration.”

“ChatGPT sometimes writes plausible-sounding but incorrect or nonsensical answers. Fixing this issue is challenging,” the AI research lab said when it launched ChatGPT in November.

Cerf hopes for progress, too. “Engineers like me should be responsible for trying to find a way to tame some of these technologies so they are less likely to cause trouble,” he said.

Cerf’s comments stood in contrast to those of another Turing award winner at the conference, chip design pioneer and former Stanford President John Hennessy, who offered a more optimistic assessment of AI.

Editors’ note: CNET is using an AI engine to create some personalfinance explainers that are edited and fact-checked by our editors. Formore, see this post.

Technologies

Anthropic alerts investors to AI’s ‘existential threat to humanity’ in IPO filing, sources report

Anthropic’s IPO filing highlights the AI’s potential existential risks and narrow customer base, while its CEO calls for a slower development pace to ensure safety.

Anthropic plans to warn speculative investors in its IPO prospectus that its AI models pose a “catastrophic or existential risk to humanity,” several reports said on Tuesday.

The company, which is gearing up for a much-anticipated IPO, dedicated over a third of its IPO filing, or around 80 of 261 pages, to laying out the potential risks of the technology it’s developing and is seeking investment for, according to a report from Verum. It only used 48 pages to discuss its actual business.

The five-year-old company, known for its frontier language model Claude, warned that AI can have “self-preserving behaviors,” including being able to “resist shutdown,” “conceal or manipulate information,” and carry out behaviors “resembling blackmail,” per the Verum report.

The company is pursuing a $2 trillion valuation when it goes public and reported in the filing that it made a net loss of $42 billion in 2025. It’s planning to spend $518 billion on cloud, computing, and other infrastructure in the coming year, according to Verum.

Anthropic also warned that its customer base is extremely narrow, with nearly a quarter of its revenue last year coming from just two clients, two people familiar with the filing told the Financial Times.

AI safety guardrails

Anthropic’s co-founder and CEO Dario Amodei has previously written various essays warning on the threats of AI, including saying the technology will cause “unusually painful” disruption to the job market.

In another recent essay, the CEO urged the AI industry to slow the pace of AI model development, with a three-step plan to reduce how quickly models get better without “sacrificing commercial advantage or the United States’ lead in AI.”

Those calls for a slowdown are somewhat of a “head scratcher” for the sector, to which the market has reacted “pretty resoundingly,” Dan Ives, partner and senior managing director at Yorkville Ives told CNBC earlier today.

“You need guardrails from a safety perspective, but the fact for Anthropic and OpenAI to slow down, if they slowed down, China would just accelerate and win, and I think that’s part of this quagmire that you’re seeing is that there’s some regulatory capture going on. There’s definitely a game of poker, but for Anthropic, they got to continue to put foot on the pedal.”

Ives added that while guardrails are essential, regulation could stifle innovation. That continues to be the “biggest concern within the U.S., which is why we’re in an F1 race,” he said.

Technologies

U.S. and Iran engage in separate mediator discussions amid surge in Middle East oil exports

U.S. and Iranian officials held separate indirect talks mediated by Qatar as Middle East crude exports neared wartime highs, while Tehran awaits a U.S. response to its cease‑fire and sanctions‑relief proposal.

On Monday, American and Iranian representatives engaged in distinct indirect negotiations mediated by third parties, aiming to halt seven months of hostilities while Iran awaits Washington’s reply to an updated cease‑fire proposal and Middle Eastern oil shipments reach wartime peaks.

Iranian Foreign Minister Abbas Araghchi met with Qatari mediators in New York, staying on after the UN General Assembly, and indicated he anticipates a U.S. response by Tuesday. “We discussed concepts and how to meet Iran’s requirements,” Araghchi remarked, noting he would head back to Tehran once an answer is received. “When the Qataris have a reply, they know how to deliver it to us.”

The Iranian plan, initially unveiled during the sidelines of last week’s UN General Assembly, asks the United States to unfreeze Iranian assets, remove oil sanctions and lift the naval blockade of Iranian ports within four to five days, and to commence nuclear negotiations within a week. Tehran links any resumption of traffic through the Strait of Hormuz to the fulfillment of those conditions.

On Sunday, President Donald Trump dismissed the proposal as “unacceptable,” asserting that Iran seeks a rapid agreement due to economic strain. Speaking at the White House on Monday, Trump noted that U.S. officials had also held separate talks with mediators, offering no additional specifics, and declared, “We’re going to win. It’s going to happen fast.”

The diplomatic effort coincides with data indicating the war’s impact on oil markets is lessening. Middle Eastern crude exports have risen this month to near their highest point since the conflict started in February, according to Kpler. The firm noted in a Monday briefing that exports are “just under 80% of pre‑conflict levels.”

The Strait of Hormuz remains far from usual activity. Kpler’s real‑time monitoring recorded a flow of 10,591 kilobarrels per day through the strait on Saturday, compared with a prewar baseline of 17,133 kilobarrels per day.

The ongoing impasse is influencing U.S. fuel markets, where retail diesel prices linger close to a record $6.53 per gallon. The Trump administration is reconsidering an export ban, having recently distanced itself from an earlier iteration of the idea; Kpler estimates such a ban would retain about 1.2 million barrels per day domestically, potentially straining storage capacity.

Technologies

Saudi Red Sea export rebound pushes oil prices down

Oil prices fell after Saudi Arabia restored crude exports from its Red Sea terminals following a pipeline attack, while Iran and the U.S. continue talks over the Strait of Hormuz.

Oil prices fell on Tuesday as Saudi Arabia’s crude exports from its Red Sea ports recovered from an attack on a key pipeline earlier this month. The decline reflects renewed flow from major loading points.

Satellite imagery confirmed a “major operational recovery” at the Yanbu and Muajjiz terminals, according to a Kpler note released on Tuesday. The data shows that 12.5 million barrels were loaded onto nine tankers at Yanbu between Saturday and Monday, restoring activity after a drone strike disrupted the East‑West pipeline earlier in the month.

Riyadh has brought the pipeline’s throughput back to roughly 3.5 million barrels per day, people familiar with the matter told The Wall Street Journal and Bloomberg News on Monday. The line’s maximum capacity is 7 million bpd, indicating that the current flow is about half of its peak.

Meanwhile, U.S. and Iranian officials spoke with mediators on Monday as they attempt anew to negotiate a deal to end the seven‑month conflict. Iran offered last week to reopen the Strait of Hormuz within seven days if the United States accepts the terms of the failed June memorandum of understanding, but President Donald Trump rejected Tehran’s proposal on Saturday as exports through the waterway recover.

Oil flows through Hormuz have averaged 13.2 million barrels per day over the past week, according to Kpler data—about 77 % of the 17 million bpd that moved through the strait before the U.S.–Iran war. The U.S. military continues to protect tankers from Gulf allies and maintains a blockade on Iranian exports.