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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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