OpenAI Faces FTC Investigation

The US Federal Trade Commission has launched an investigation into OpenAI, the developer of the ChatGPT bot, to determine whether the company has breached consumer protection laws by putting personal data and reputations at risk. The regulator has demanded that OpenAI provide records of how it handles risks relating to its AI models, including details of any complaints about false or misleading statements. The FTC also investigates whether the company engaged in unfair or deceptive practices that may have led to reputational harm. The probe marks the most significant regulatory challenge to date for OpenAI.