OpenAI's FTC Probe: The Story So Far
On July 13, Reuters broke the news that the U.S. Federal Trade Commission (FTC) has initiated an investigation into OpenAI on the grounds of potential violations of consumer protection laws, representing the most substantial regulatory challenge faced by the Microsoft-backed startup so far. According to the FTC's 20-page demand for records, the key concern is how OpenAI, the creator of the generative artificial intelligence chatbot ChatGPT, manages the risks associated with its AI models.
The FTC is scrutinizing whether OpenAI engaged in unscrupulous practices that inflicted "reputational harm" on consumers. This probe