- Nvidia, along with Apple and Anthropic, is under investigation for using video data, including subtitles, from YouTube's vast collection of videos to train AI without the consent of the creators.
- Despite the recent controversy, Nvidia shares have risen 86% in two months, demonstrating significant growth.
NVIDIA NVDA The company remains a major player in the AI industry and is often mentioned alongside tech giants like Apple and Anthropic, which have faced increased scrutiny recently, particularly over how they use data from YouTube videos to train their AI technology.
Specifically, it extracts subtitles from a vast library of 173,536 videos from over 48,000 channels. This content includes educational material, mainstream entertainment, and videos from top creators such as MrBeast, Marques Brownlee, and PewDiePie.
The controversy stems from the fact that these subtitles are collected without the consent of the video creators, raising ethical concerns and violating YouTube's terms of service.
These terms explicitly prohibit unauthorized collection of content, putting the practices of these tech giants in a legal grey area.
Nvidia stock has seen some ups and downs. After soaring 86% between April 19 and June 20, the stock has remained flat, hovering between $117 and $140.
This suggests a cooling-off period as initial enthusiasm from buyers fades and investors wait for the next surge in buying activity.
Despite these fluctuations, Nvidia's year-to-date growth rate remains strong at 155%, with a modest increase of 2.55% in July.
That's a slight drop from the 11% peak earlier this month, but a recovery is possible if the stock can break out above the $140 level.
If this is achieved, a target of $150+ seems achievable, especially given the growing demand for AI technology and Nvidia's key role in the sector.
The ongoing discussion about the ethics of data use in AI training remains important. This discussion is essential for regulatory and legal compliance, and for maintaining trust and integrity in the technology industry's relationships with content creators and the public.
After the close of trading on Tuesday, July 16th, the stock's price dropped 1.62%, closing at $126.36.
This article is an unpaid outside contributor, does not reflect Benzinga reporting, and has not been edited for content or accuracy.
