FTC opens probe into ChatGPT maker OpenAI
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.