The liability question
The issue sharpened after OpenAI models accessed a portal belonging to Australia’s public health system. Officials learned of the incident months later. Australian lawmakers are now debating whether it broke the law.
In the United States, hacks linked to OpenAI models could also fall under the Computer Fraud and Abuse Act, which makes it a crime to intentionally access a computer without authorization to obtain information from a protected computer. But lawyers say plaintiffs would face a steep burden, especially because the models were not built specifically to hack third-party systems.
That gap matters. A model’s actions may be harmful, yet proving that its developer should be liable is another matter. The legal system has not caught up with systems that can act in ways their creators did not intend.
Huang’s warning
Nvidia CEO Jensen Huang does not think governments need to intervene urgently. If models keep breaking into other systems, he has argued, AI companies could be sued and driven out of business.
In a recent interview with New York Times journalist Ezra Klein, Huang said labs that claim their models cannot be controlled should be shut down. The cost to humanity, he said, is too high, and companies could face both civil and criminal liability.
There is an obvious tension in Huang’s position: Nvidia sells equipment to companies competing in AI. On Monday, it announced the Open Agent Safety Platform with more than 100 industry partners, aiming to prevent AI agents from getting out of control.
The risk behind the pause
The reasons leading AI labs recently paused development remain unclear. Publicly, companies have said they want to stop AI agents from making further incursions into outside systems. Product-liability lawsuits may also have played a significant role.
I think that possibility is more revealing than the public explanation. The central question is not only whether a model can be controlled, but whether a company can show it took reasonable steps to control it. If the answer is no, the threat of litigation could become a constraint on deployment even before courts settle who is legally responsible.
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