OpenAI, the company behind the famous chatbot ChatGPT, is facing an investigation by the Federal Trade Commission (FTC) over concerns related to data collection and privacy. This investigation could potentially be the biggest threat yet to OpenAI’s chatbot technology.
According to documents revealed by The Washington Post, the FTC is looking into whether OpenAI has violated consumer protection laws by not being transparent about its data collection practices and privacy measures. In a 20-page document, the FTC has demanded that OpenAI provide detailed information on how and from where it has collected data used to train its large language models (LLMs), which serve as the foundation for ChatGPT. Additionally, the agency is requesting OpenAI to explain the precautions it takes to protect personal information from being included in the datasets used for training its LLMs.
If the investigation finds OpenAI in violation of these laws, the consequences could include fines and a requirement to implement strict data-management practices through a consent decree. Notably, other tech giants such as Twitter and Facebook have faced consent decrees from the FTC in the past.
The FTC’s investigation has the potential to significantly impact OpenAI, as the company has been a leading force in the rise of generative AI, particularly since the introduction of ChatGPT last November. It also indicates a broader trend of potential legal regulations on the generative AI industry.
Numerous lawsuits have already been filed against OpenAI, with many of them centered around its data collection practices for training ChatGPT. In June, 16 anonymous plaintiffs filed a lawsuit alleging OpenAI gathered massive amounts of personal data from the internet to develop its chatbot. Additionally, several authors, including comedian Sarah Silverman, have sued OpenAI, claiming that the company used their copyrighted works to train ChatGPT, citing the chatbot’s ability to accurately summarize their books.
Amidst these legal challenges, OpenAI CEO and cofounder Sam Altman has been active in lobbying world leaders and lawmakers to advocate for less stringent regulations on generative AI. However, Altman has not yet commented on the recent legal issues surrounding his company. OpenAI and the FTC have also not provided immediate comments on the ongoing investigation.
Altman has previously emphasized the importance of avoiding legal trouble for OpenAI and has expressed concerns about taking the company public due to potential legal challenges from investors.
