TikTok’s parent company, ByteDance, has been secretly using OpenAI’s technology to develop its own competing large language model (LLM). “This practice is generally considered a faux pas in the AI world,” writes The Verge’s Alex Heath. “It’s also in direct violation of OpenAI’s terms of service, which state that its model output can’t be used ‘to develop any artificial intelligence models that compete with our products and services.’”
I can’t speak for every jurisdiction, but I’d be hard pressed to see why it wouldn’t be legal in the US, especially in these circumstances. ByteDance is a massive legally sophisticated corporation, so they should’ve been expected to fully read and understand the terms and conditions before accepting them. They probably won’t bring a legal challenge, because they know they don’t have a particularly strong legal argument or a sympathetic angle to use.
The issue is that what they are doing there is blatantly anticompetitive.
https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/single-firm-conduct/refusal-deal
Sorry for the late reply, but this doesn’t really seem like it’d come close to invoking any of the US’s neutered antitrust enforcement. Open AI doesn’t have a monopoly position to abuse, since there are other large firms offering LLMs that see reasonable amounts of usage. This clause amounts more to an effort to stop reverse engineering than stifle anyone trying to build an LLM.