Microsoft-backed OpenAI under investigation by FTC

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The U.S. Federal Trade Commission (FTC) is reportedly investigating OpenAI, the creator of the popular ChatGPT chatbot, over consumer protection concerns. Backed by billions of dollars from Microsoft (NASDAQ: MSFT), OpenAI may have violated consumer protection laws, according to the Washington Post. The investigation, led by Lina Khan’s FTC, is focused on OpenAI’s data protection practices and whether the chatbot generates false information. OpenAI and Microsoft have not yet commented on the investigation.

In March, OpenAI temporarily disabled the history feature on the chatbot after users reported seeing conversations from other users. This incident brought attention to OpenAI’s data protection practices, resulting in a temporary ban in Italy. However, the service resumed in April after OpenAI addressed the data protection and privacy concerns of Italy’s data privacy agency. The European Data Protection Board also created a task force in April to look into ChatGPT.

OpenAI and its chatbot ChatGPT have gained significant attention for their advancements in generative artificial intelligence. In fact, OpenAI claimed in March that its new GPT-4 Large Language Model can outperform more than 90% of all people in the SAT exam. Microsoft’s investment in OpenAI has led to the integration of its technology into various products, including its developer software suite, Power Platform, Azure cloud, Bing search engine, and mobile apps.

The FTC’s investigation into OpenAI underscores the growing scrutiny surrounding data protection in the field of artificial intelligence. It remains to be seen how this investigation will unfold and what implications it may have for OpenAI and its chatbot technology.

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Frequently Asked Questions (FAQs) Related to the Above News

What is OpenAI?

OpenAI is an organization that is known for creating powerful chatbots, with one of its popular chatbots being ChatGPT. They have received substantial funding from Microsoft.

Why is OpenAI being investigated by the FTC?

The U.S. Federal Trade Commission is conducting an investigation into OpenAI over concerns related to consumer protection. The investigation centers around OpenAI's data protection practices and the potential generation of false information by the chatbot.

What incident brought attention to OpenAI's data protection practices?

In March, OpenAI disabled the history feature on its ChatGPT chatbot after users reported seeing conversations from other users. This incident raised concerns about data protection and led to a temporary ban in Italy.

How has OpenAI addressed the data protection concerns raised?

OpenAI resolved the data protection and privacy concerns raised by Italy's data privacy agency and resumed its services in April. They have actively worked to address these concerns and ensure data protection.

What technological advancements has OpenAI made with its chatbot technology?

OpenAI's chatbot technology, such as ChatGPT, has attracted attention for its advancements in generative artificial intelligence. They claimed that their GPT-4 Large Language Model can outperform more than 90% of individuals in the SAT exam.

How has Microsoft been involved with OpenAI?

Microsoft has provided substantial financial backing to OpenAI. The investment has led to the integration of OpenAI's technology into various Microsoft products, including developer software, Azure cloud, Bing search engine, Power Platform, and mobile apps.

What is the significance of the FTC's investigation into OpenAI?

The FTC's investigation highlights the increasing focus on data protection in the field of artificial intelligence. It is unclear how the investigation will unfold and what implications it may have for OpenAI and its chatbot technology. Further updates and developments are awaited.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

Aryan Sharma
Aryan Sharma
Aryan is our dedicated writer and manager for the OpenAI category. With a deep passion for artificial intelligence and its transformative potential, Aryan brings a wealth of knowledge and insights to his articles. With a knack for breaking down complex concepts into easily digestible content, he keeps our readers informed and engaged.

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