ChatGPT creator OpenAI under investigation by FTC
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OpenAI is under investigation by the Federal Trade Commission (FTC) over whether its artificial intelligence-powered tools including ChatGPT have harmed consumers.
In a letter sent to OpenAI, first reported by The Washington Post and confirmed by The Wall Street Journal, the FTC informed the company it is probing whether it has "engaged in unfair or deceptive" practices related to data security or "relating to risks of harm to consumers."
The Federal Trade Commission has launched a probe into ChatGPT creator OpenAI over whether the company's large language models have harmed consumers. (CFOTO/Future Publishing via Getty Images / Getty Images)
The federal agency also said it is determining whether fining OpenAI "would be in the public interest."
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In the 20-page document, the FTC demands OpenAI describe in detail a litany of its processes for developing and training any large language models, as well as policies and procedures for assessing "risk and safety" before releasing new products.
Sam Altman, chief executive officer and co-founder of OpenAI, speaks during during a Senate Judiciary Subcommittee hearing in Washington, D.C., on May 16, 2023. (Eric Lee/Bloomberg via Getty Images / Getty Images)
OpenAI did not immediately respond to FOX Business' request for comment. The FTC declined to comment.
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The FTC's move comes after months of warning that new generative AI tools like ChatGPT are on its radar.
Lina Khan, chair of the Federal Trade Commission (FTC), during a House Judiciary Committee hearing in Washington, D.C., on Thursday, July 13, 2023. The same day, multiple reports confirmed the agency is investigating ChatGPT creator OpenAI. (Al Drago/Bloomberg via Getty Images)
FTC Chair Lina Khan said during a virtual press event in April that the agency would "not hesitate to crack down on this unlawful behavior" if AI tools are being used to further "unfair, deceptive practices or unfair methods of competition."
"There is no AI exemption to the laws on the books," she added.
The day the news broke that the FTC is investigating OpenAI, Khan addressed the matter while on Capitol Hill testifying before the House Judiciary Committee.
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"So as a general matter, some of what we're seeing in this space is that ChatGPT and some of these other services are being fed a huge trove of data," the FTC chair said. "We've heard reports where people's sensitive information is showing up in response [to] an inquiry from somebody else. We've heard about libel, defamatory, flatly untrue things that are emerging. That's the type of fraud, deception that we're concerned about."
Reuters contributed to this report.