Internal Affairs’ AI venture probe
Internal Affairs is investigating the New Zealand group behind a supposedly groundbreaking artificial intelligence (AI) programme.
The Terrible Foundation’s cotrustees, David Whale and his
26-year-old son Albi Whale, claimed to be building an advanced AI programme in Christchurch that could write up doctor’s notes, run a company and talk to people. They also claimed to have $450 million in assets. But the claims have been cast into doubt by recent reports.
An Internal Affairs spokeswoman said the department was investigating the foundation’s filings to Charities Services. The foundation’s latest performance report to Charities Services claimed $450m in assets, including
$2m in cash, $10m in investments and $442m worth of property, plant and equipment.
‘‘After an assessment process, the department has decided to progress the Terrible Foundation to an investigation. The department does not provide further comment on investigations when they are under way,’’ she said.
The foundation has not responded to emails and calls.
An Internal Affairs spokesman said last month: ‘‘[Each charity] is expected to comply fully with the Charities Act 2005, which includes annual financial reporting obligations. It is an offence under the act to knowingly fail to comply with the financial reporting standards. Whenever significant interest in a particular registered charity is raised by the community or through the media we actively review the activities and returns of that charity and promptly consider whether further investigation is warranted.’’
The Whales came to public
"The department has decided to progress the Terrible Foundation to an investigation." Internal Affairs spokeswoman
attention in 2017, making bold claims about their plans to build an AI programme called Zach, which they would house in a restored heritage building in central Christchurch. They also claimed to be using profits from various initiatives to donate to worthy causes. But the claims appeared to unravel in March. Donations promised to local causes were later withdrawn and experts cast doubt on claims about Zach’s abilities. David Whale said some donations were on hold because they ‘‘ran out of money’’ in December. Albi Whale told The Press he hoped to give millions to charity and generate between $6m to $30m in revenue last year.
The pair were working with Christchurch Hospital director of emergency medicine research Martin Than and GP Robert Seddon-Smith to develop ways that Zach could be used in medicine.