The Federal Trade Commission has opened an investigation into OpenAI, the startup behind the artificial intelligence bot ChatGPT, over possible violation of consumer protection laws.
In a 20-page civil investigative demand letter, FTC asked OpenAI to provide records and answer dozens of questions, some related to the bot’s tendencies to generate inaccurate information and the company’s data leak in March, to help it determine whether the company had put users’ data and reputations at risk. The investigation was first reported by The Washington Post.
FTC spokesperson Douglas Farrar declined to comment. OpenAI CEO Sam Altman released a statement on Twitter that said the company will “of course” work with the FTC and believes it is “super important” that its technology is safe and pro-consumer.
“We built GPT-4 on top of years of safety research and spent 6+ months after we finished initial training making it safer and more aligned before releasing it,” Altman said on Twitter. “We protect user privacy and design our systems to learn about the world, not private individuals.”
The regulatory scrutiny comes shortly after OpenAI CEO Sam Altman’s May testimony in Congress, where he called for more government regulation in the industry. The head of the FTC previously warned that the agency wouldn’t hesitate to crack down on harmful business practices involving AI.
Concerns over AI’s impact
The investigation comes amid growing concerns over AI technology and its potential to spread disinformation and take away jobs.
Geoffrey Hinton, a top architect of artificial intelligence, in May warned that AI could someday take over the world and push humanity toward extinction. And Hinton and Altman were among hundreds of leading figures who signed a warning in May that AI technology could create as high a risk of killing off humankind as nuclear war.
Despite concerns, regulatory action in the U.S. has been slow. Senate Majority Leader Charles Schumer recently said a comprehensive AI bill in the U.S. is likely months away.
Meanwhile, European lawmakers in June signed off on the world’s first set of comprehensive rules for artificial intelligence, with final approval expected by the end of this year.
FTC chair under pressure
News of the investigation comes as Democratic FTC Chair Lina Khan defends her tenure at the regulatory agency.
House Republicans have accused the FTC of becoming overzealous and politicized under President Joe Biden. Khan pushed back on the criticism Thursday, arguing that more regulation is necessary as the companies have grown and that tech conglomeration could hurt the economy and consumers.
The FTC on Wednesday said it would appeal a U.S. court ruling to allow Microsoft to acquire gaming company Activision Blizzard for $69 billion.
The Associated Press contributed to this report.
