FTC is investigating OpenAI for data and publishing false information

The Federal Trade Commission (FTC) is investigating the creator of ChatGPT, OpenAI, for potential harm to consumers through data gathering and publishing false information.

First indicated by The Washington Post, the FTC sent a 20-page letter to the company this week. The letter asks for documents related to developing and training its large language models, as well as data security.

The FTC wants detailed information on how OpenAI verifies information used in training its models and prevents false claims from being shown to ChatGPT users. It also wants to learn more about how APIs connect to its systems and how data is protected when used by third parties.

The FTC declined to comment. OpenAI did not immediately respond to requests for comment.

This is the first major US study of OpenAI, which came into the public consciousness last year with the release of ChatGPT. The popularity of ChatGPT and the large language models that enable it started an AI arms race that pushed competitors like Google and Meta to release their own models.

Large language models can reveal factually incorrect information. OpenAI warns ChatGPT users that it can occasionally generate false facts, and the first public demo of Google’s chatbot Bard did not inspire confidence in its accuracy. And based on personal experience, they’ve both spouted incredibly flattering, if completely fabricated, facts about myself. Other people have run into problems using ChatGPT. An attorney was sanctioned for filing bogus cases created by ChatGPT, and a Georgia radio host sued the company for results claiming he was charged with embezzlement.

U.S. lawmakers have shown great interest in AI, both for understanding the technology and potentially exploring regulations surrounding it. The Biden administration has released a plan to provide a responsible framework for AI development, including a $140 million investment to establish research centers. Supreme Court Justice Neil Gorsuch also discussed potential legal liability of chatbots earlier this year.

It is in this environment that AI leaders such as Sam Altman, CEO of OpenAI, have made the rounds in Washington. Altman lobbied Congress to create regulations around AI.