OpenAI Faces FTC Probe Over Privacy and Data Security Practices
The Federal Trade Commission (FTC) is currently investigating OpenAI, the developer of the popular AI chatbot ChatGPT. The FTC is examining whether OpenAI has engaged in unfair or deceptive privacy or data security practices, as well as unfair or deceptive practices related to risks of harm to consumers, including reputational harm. The regulatory body sent a letter to OpenAI outlining its concerns.
The investigation was first reported by the Washington Post, which also shared a redacted copy of the letter from the FTC to OpenAI. The FTC’s information requests to OpenAI cover the period from June 1, 2020, until the company fully and completely complies with the investigation.
The FTC’s Investigation Into OpenAI
The FTC is specifically asking OpenAI for a description of any measures the company has taken to address and correct ChatGPT’s tendency to “hallucinate” or reveal personal information. OpenAI released the first publicly available version of ChatGPT in November 2022. While the chatbot is capable of generating coherent texts on a wide range of topics, it has been known to occasionally make things up.
OpenAI’s Response to the Investigation
In response to news of the FTC investigation, OpenAI CEO Sam Altman expressed disappointment with how the investigation started and emphasized the company’s commitment to safety and consumer welfare. Altman stated that they have built GPT-4 based on extensive safety research and spent several months refining the model to make it safer and more aligned with user needs. He added that OpenAI prioritizes user privacy and designs its systems to learn about the world rather than individuals.
Legal Challenges and Lawsuits Against OpenAI
In addition to the FTC investigation, OpenAI is also facing legal challenges from various entities. These include a defamation lawsuit filed by a talk show host who claims that ChatGPT invented false legal claims against him. Another lawsuit involves allegations by plaintiffs, including Sarah Silverman, accusing OpenAI’s large language model of illegally using their copyrighted works. OpenAI has not commented on these lawsuits.
Conclusion
OpenAI’s ChatGPT is under scrutiny as the FTC investigates the company’s privacy practices and potential risks to consumers. OpenAI is working with regulatory authorities to address any concerns and ensure that its technology is safe and consumer-oriented. While legal challenges persist, OpenAI remains committed to transparency and continuously improving the safety and performance of its AI models.
Editor Notes
OpenAI’s ongoing investigation by the FTC highlights the increasing scrutiny surrounding privacy and data security in the AI industry. As AI technologies continue to evolve and integrate into various aspects of our lives, it’s crucial to maintain a balance between innovation and protecting consumer interests. AI development should prioritize privacy, security, and ethical considerations to build trust and ensure the responsible use of these powerful technologies. Stay informed with the latest AI news and developments at GPT News Room.
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