Ex-Google CEO Warns: AI Startups Can Illegally Steal IP and Hire Lawyers to 'Fix the Aftermath'

Former Google CEO Eric Schmidt recently stirred controversy by stating that Google was caught off guard by the rapid rise of ChatGPT because employees prioritized remote work over success. This remark was made during an interview at Stanford, which has drawn significant media attention. Although the interview was later removed from the university's YouTube channel, key points from Schmidt's conversation with Stanford’s Erik Brynjolfsson remain noteworthy.

One particularly striking moment occurred when Schmidt discussed a hypothetical future in which AI agents could execute complex tasks for humans. He proposed a scenario involving TikTok:

“If TikTok is banned, here’s what I propose you do: Tell your LLM to ‘Create a copy of TikTok, attract all the users, gather all the music, personalize it for me, launch the program in the next 30 seconds, and if it’s not viral within an hour, try something else.’”

Later, Schmidt clarified this statement, emphasizing that if a Silicon Valley entrepreneur successfully created a competitive product, they could then hire lawyers to address any legal issues. He noted, “If nobody uses your product, it doesn’t matter that you stole the content.

Brynjolfsson pointed out that Schmidt was “on camera,” to which Schmidt responded with a view into Silicon Valley's mindset: “That’s right. My point is that these tests are typically run, and then the mess is cleaned up afterward.”

Despite stepping down as chairman of Google in 2015, Schmidt continues to wield influence in Silicon Valley and remains an active investor. In the same discussion, he boasted about his investment in the AI startup Mistral and even referred to himself as “a licensed arms dealer” for the U.S. military. He also spoke fondly of his relationship with Sam Altman and recounted a recent dinner with Elon Musk.

As the discussion surrounding Schmidt's controversial comments continues, it raises important questions about the balance between innovation and ethics in the tech industry.