US FTC launches investigation into OpenAI over consumer protection concerns
The US Federal Trade Commission (FTC) has launched an investigation into OpenAI over claims of putting personal reputations and data at risk, posing a major setback for the Microsoft-backed startup
In a major setback to AI chatbot OpenAI, the US Federal Trade Commission (US FTC) launched an investigation into OpenAI on claims that it has put personal reputations and data at risk. The claims of OpenAI running afoul of consumer protection laws have attracted the strongest regulatory threat to the Microsoft-backed startup yet.
In its 20-page demand to OpenAI, FTC sought details about how the AI company addresses risks tied to its AI models. The agency is investigating if OpenAI engaged in unfair practices that resulted in “reputational harm” to consumers.
It is worth noting that, Microsoft and FTC were at loggerheads on the former's acquisition of Activision Blizzard acquisition. However, FTC suffered a huge loss in the case. The investigation marks another high-profile effort of the agency to rein in technology companies by the FTC's progressive chair, Lina Khan.
(With inputs from Reuters)