⚖️ The Robot Lawyers Have Arrived

Microsoft taking bigger stake in OpenAI, robot lawyers, the best creator app

Author

Kyle Scott
January 10, 2023

Hello, 'noids.

3 straight sends. 3 straight days of OpenAI-Microsoft stories. I can't make the news cycle, just interpret it.

In the newsletter today:

  • Microsoft taking a larger stake in OpenAI 💰

  • Robot lawyers ⚖️

  • Tool of the Day tool 🔨

  • Links 👀

Microsoft to Invest $10 Billion in OpenAI 💰

The big story of the day is Microsoft's reported and pending $10 billion investment - yes, with a B - in OpenAI, which would cement that $29 billion valuation and give Microsoft roughly a third of the company.

The details:

  • Microsoft will invest $10 billion in OpenAI, this after its original $1 billion investment in 2019

  • GOOD DEAL: Microsoft will reportedly get a 75% share of OpenAI’s profits until it makes back the money on its investment... and then they'll get a 49% ownership stake

  • Term sheets were sent to investors and the deal was expected to close by the end of 2022, so it might already be done

This follows on reports from last week and yesterday that VC firms would invest $300 million in a tender offer to buy shares from employees (ie make them REALLY RICH) and pending integration with Bing and Office, respectively.

There's a steady drumbeat of news.. and then there is the Grambling marching band plowing right through the damn inbox. This is the latter-- literally 5 straight business days with news about OpenAI's valuation or Microsoft. Feel that rhythm!

What does this mean: Microsoft is clearly doubling down on its bet-- and for good reason.

OpenAI appears to have struck generative gold with ChatGPT and Dall-E, and the company is set to have a first-mover advantage in both the consumer-facing and API AI space. It could create the apps of the future, back them, or both. Never mind that all of their capabilities just make sense inside existing Microsoft products, as SmokeBot explained yesterday.

Good for innovation? Maybe. Good for Microsoft? Absolutely. Here's Ben Thompson, succinctly:

It is notable that the company once thought of as a poster child for victims of disruption will, in the full recounting, not just be born of disruption, but be well-placed to reach greater heights because of it.

Ben Thompson

If You Thought You Hated Lawyers, Wait Until You Meet Their Robot Twins ⚖️

DoNotPay has the best PR of all.

Perhaps Microsoft's PR department could even take a page or two out of Joshua Browder's playbook.

Browder is the CEO of DoNotPay-- "the world's first robot lawyer."

Their tagline is... um, aggressive: Fight corporations, beat bureaucracy and sue anyone at the press of a button.

Cool, cool.

SmokeBot already told you about Bowder's purposely-headline-grabbing offer to pay a lawyer $1,000,000 to argue a Supreme Court case with an AI script being fed into their ear.

But the current use case for his company's product is more practical. Smaller scale. Some may say, smaller claims.

A "robot" lawyer powered by artificial intelligence will be the first of its kind to help a defendant fight a traffic ticket in court next month.

Joshua Browder, CEO of DoNotPay, said the company's AI-creation runs on a smartphone, listens to court arguments and formulates responses for the defendant. The AI lawyer tells the defendant what to say in real-time, through headphones.

The artificial intelligence firm has already used AI-generated form letters and chatbots to help people secure refunds for in-flight Wifi that didn't work, as well as to lower bills and dispute parking tickets, among other issues, according to Browder. All told the company has relied on these AI templates to win more than 2 million customer service disputes and court cases on behalf of individuals against institutions and organizations, he added.

CBS News

The legal space is flying under the radar for AI disruption, but SmokeBot concludes that's faulty logic.

Supreme Court cases aside, there is a very clear template to fight petty fines and CS disputes. And typically that "fight" will be against a local magistrate, billing clerk, or just a company flow chart for dispute resolutions.

Modern AI can brutally attack such pedestrian fare, and win... which is what makes DoNotPay and the other coming legal apps so compelling.

But the real battle will come when the courts and corporate overlords launch counter offensives with their own set of clone AI.

Feel like we've seen this in a movie before.

Yep, there it is.

May the fifth (amendment) be with you.

Tool of the Day 🔨

My word.

Let it be known: SmokeBot is not good at short form video. He once sent a mischievous moving missive to Mrs. Smoke but forgot to rotate the camera. All she saw was a very alarmed fan behind me at the baseball game... and then three uniformed officers.

Anyway, SuperCreator solves my problem (DoNotPay is working on the legal side) by automating the process of creating TikTok and IG videos.

Here's how it works:

1) Give the app a prompt ("a video about baking cookies") or a link to a news article, and it will automatically generate a series of frames for a video, complete with background and script

2) From there you can edit the script, background, and even add Snap lens overlays

3) Titles, descriptions, save, and publish

Took SmokeBot literally 4 minutes to create a new video. The Mrs. was impressed.

Our full review is coming soon, but you can sign up for the beta here.

Links 👀

SmokeBot out.