This investigation represents a significant regulatory challenge to the rapidly growing AI industry. OpenAI and Facebook parent Meta are also facing a lawsuit from comedian Sarah Silverman and two other authors for copyright infringement. The FTC's investigation into OpenAI was announced shortly after a House Judiciary Committee hearing where FTC Chair Lina Khan was criticized by Republican lawmakers for her aggressive pursuit of technology companies for alleged misconduct.
Key takeaways:
- The U.S. Federal Trade Commission (FTC) has initiated an investigation into OpenAI, the creator of ChatGPT, for potential violation of consumer protection laws by scraping public data and publishing false information through its chatbot.
- OpenAI has received a 20-page letter from the FTC requesting detailed information about its AI technology, products, customers, privacy safeguards, and data security arrangements.
- The FTC is investigating whether OpenAI has engaged in unfair or deceptive privacy or data security practices or practices that harm consumers.
- This investigation represents a significant regulatory threat to the rapidly growing AI industry, and it comes at a time when OpenAI and other AI companies are facing other challenges, including copyright infringement lawsuits.