Jul 13, 2023 - Technology

FTC opens probe into ChatGPT maker OpenAI

Ashley Gold

FTC Chair Lina Khan testifies Thursday during a House hearing. Photo: Al Drago/Bloomberg via Getty Images

The Federal Trade Commission is opening an investigation into ChatGPT maker OpenAI, exploring how the company manages risks, a source familiar with the matter confirms to Axios.

Why it matters: The FTC has been warning that consumer protection rules apply to generative AI companies, and kicking off an investigative shows the agency keeping its word.

A civil investigative demand letter has been sent and the investigation is now underway, per the source familiar.
News of the investigation, first reported by the Washington Post, comes amid an intense Capitol Hill oversight hearing for Democratic chair Lina Khan, who has faced a string of court losses recently.
Yesterday the FTC said it was appealing a court's ruling against its effort to block Microsoft's acquisition of Activision.

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FTC opens probe into ChatGPT maker OpenAI

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