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Comment by __MatrixMan__

1 day ago

With theft, somebody ends up without an Xbox. Theft is wrong. This is mere breach of contract, whether it's wrong depends on the contract.

You’ll have to clarify who the counterparties are to this contract and where the person whose credit card was stolen fits into it.

  • I don't doubt that stolen cards are involved, but you could say that for anything that has to do with card-not-present transactions, e.g. Amazon retail. Is there reason to believe that it's especially prominent in this case?

    I assume most of it is just people who want cheaper access to these models and don't mind subsidizing access via somebody who is simultaneously distilling the model.

What?! It is definitely credit card fraud, and a criminal enterprise, and by any definition it is wrong. I cannot imagine a jurisdiction where this is a “mere breach of contract”.

  • Where are you getting the idea that the cards are stolen? Sure it's mentioned that some of them likely are, but there's no reason to believe that that's most of them or that the fact that they're stolen has anything to do with the way this market functions.

    This is about controlling who gets to use the tokens for what, not about payment fraud.

What?

  • It's not _theft_ because nothing is _stolen_. The tokens are being used in a way that breaches the contract agreed to by whomever set up the account with OpenAI, Anthropic, Kilo, Antigravity etc. but it's not theft.