var TRINITY_TTS_WP_CONFIG={“cleanText”:”FTC launches first major US investigation into ChatGPT maker OpenAI.u23f8The top U.S. consumer protection agency has launched the countryu2019s first major probe into OpenAI, the maker of ChatGPT. The Federal Trade Commission (FTC) is investigating whetheru00a0OpenAI breached customer protectionu00a0laws or caused reputational harm to its users in the companyu2019s biggest regulatory threat.u23f8In a criminal investigative demand (CID)u00a0issuedu00a0to OpenAI, the FTC requests extensive details about how the company collects, utilizes, stores, and protects data. The FTC issued the 20-page CID this week, the Washington Post firstu00a0reportedu00a0on Thursday.u23f8The regulator wants to know whether OpenAI has u201cengaged in unfair or deceptive privacy or data security practices.u201d Itu2019s also probing whether theu00a0Sam Altman-led firm has u201cengaged in unfair or deceptive practices relating to risks of harm to consumers, including reputational harm, in violation of Section 5 of the FTC Act.u201du23f8In its 49 questions, the agency requested the company to provide information on all the third parties with access to its large language models. The questions also delve into how OpenAI obtains and protects the data it trains its large language models (LLMs) on, its top ten users and licensors, and more.u23f8Another focus for the FTC is how OpenAI monitorsu00a0ChatGPT and its other LLMsu00a0to protect against u201cgenerating statements about real individuals that are false, misleading and disparaging.u201du23f8ChatGPT has come under fire for generating false and misleading information since its launch last November. Last month, a radio host in Georgiau00a0suedu00a0the company after it claimed he had embezzled funds from a non-profit organization in the first defamation lawsuit against an AI chatbot.u23f8In May, ChatGPT falselyu00a0accusedu00a0a California university lecturer of sexually harassing a student and even invented a fake link to a non-existent article on the Washington Post as proof. In response, OpenAI promised to do better and claimed to be making progress.u23f8The FTC has given the company 14 days to respond to the CID.u23f8ChatGPT vs regulatorsu23f8The FTCu2019s CID is the most significant regulatory action against OpenAI in the United States. While regulators have threatened to take any actions necessary to protect AI users, they have been all bark and no bite.u23f8On their part, AI pioneers have launched au00a0global campaignu00a0to coax regulators to take a soft approach to regulating the industry. OpenAI founder and CEO Altman has been the global icon for this campaign, usingu00a0threats,u00a0grants, andu00a0grand promisesu00a0to woo regulators across the U.S., Europe, and Asia.u23f8Altman took to Twitter to call out the agency, claiming to be disappointed at its approach.u23f8https://twitter.com/sama/status/1679602638562918405u23f8u201cu2026we protect user privacy and design our systems to learn about the world, not private individuals. Weu2019re transparent about the limitations of our technology, especially when we fall short, and our capped-profits structure means we arenu2019t incentivized to make unlimited returns,u201d he added.u23f8OpenAI will cooperate with the agency on the issue, Altman pledged.u23f8In the FTC, Altman faces a formidable threat. Led by Lina Khan, the FTC has become President Joe Bidenu2019s most prominent Silicon Valley czar. It has brought actions against behemoths like Microsoft (NASDAQ: MSFT),u00a0Twitter, Google (NASDAQ: GOOGL), and more, winning hundreds of millions of dollars in settlement.u23f8The FTC now has its sights set on AI.u23f8u201cThe FTC welcomes innovation, but being innovative is not a license to be reckless. We are prepared to use all our tools, including enforcement, to challenge harmful practices in this area,u201d FTCu2019s director Sam Levine stated in April.u23f8 Conversations with Owen Vaughan & Alessio Pagani: Blockchain can bring accountability to AIu23f8″,”headlineText”:”FTC launches first major US investigation into ChatGPT maker OpenAI”,”articleText”:”The top U.S. consumer protection agency has launched the countryu2019s first major probe into OpenAI, the maker of ChatGPT. The Federal Trade Commission (FTC) is investigating whetheru00a0OpenAI breached customer protectionu00a0laws or caused reputational harm to its users in the companyu2019s biggest regulatory threat.u23f8In a criminal investigative demand (CID)u00a0issuedu00a0to OpenAI, the FTC requests extensive details about how the company collects, utilizes, stores, and protects data. The FTC issued the 20-page CID this week, the Washington Post firstu00a0reportedu00a0on Thursday.u23f8The regulator wants to know whether OpenAI has u201cengaged in unfair or deceptive privacy or data security practices.u201d Itu2019s also probing whether theu00a0Sam Altman-led firm has u201cengaged in unfair or deceptive practices relating to risks of harm to consumers, including reputational harm, in violation of Section 5 of the FTC Act.u201du23f8In its 49 questions, the agency requested the company to provide information on all the third parties with access to its large language models. The questions also delve into how OpenAI obtains and protects the data it trains its large language models (LLMs) on, its top ten users and licensors, and more.u23f8Another focus for the FTC is how OpenAI monitorsu00a0ChatGPT and its other LLMsu00a0to protect against u201cgenerating statements about real individuals that are false, misleading and disparaging.u201du23f8ChatGPT has come under fire for generating false and misleading information since its launch last November. Last month, a radio host in Georgiau00a0suedu00a0the company after it claimed he had embezzled funds from a non-profit organization in the first defamation lawsuit against an AI chatbot.u23f8In May, ChatGPT falselyu00a0accusedu00a0a California university lecturer of sexually harassing a student and even invented a fake link to a non-existent article on the Washington Post as proof. In response, OpenAI promised to do better and claimed to be making progress.u23f8The FTC has given the company 14 days to respond to the CID.u23f8ChatGPT vs regulatorsu23f8The FTCu2019s CID is the most significant regulatory action against OpenAI in the United States. While regulators have threatened to take any actions necessary to protect AI users, they have been all bark and no bite.u23f8On their part, AI pioneers have launched au00a0global campaignu00a0to coax regulators to take a soft approach to regulating the industry. OpenAI founder and CEO Altman has been the global icon for this campaign, usingu00a0threats,u00a0grants, andu00a0grand promisesu00a0to woo regulators across the U.S., Europe, and Asia.u23f8Altman took to Twitter to call out the agency, claiming to be disappointed at its approach.u23f8https://twitter.com/sama/status/1679602638562918405u23f8u201cu2026we protect user privacy and design our systems to learn about the world, not private individuals. Weu2019re transparent about the limitations of our technology, especially when we fall short, and our capped-profits structure means we arenu2019t incentivized to make unlimited returns,u201d he added.u23f8OpenAI will cooperate with the agency on the issue, Altman pledged.u23f8In the FTC, Altman faces a formidable threat. Led by Lina Khan, the FTC has become President Joe Bidenu2019s most prominent Silicon Valley czar. It has brought actions against behemoths like Microsoft (NASDAQ: MSFT),u00a0Twitter, Google (NASDAQ: GOOGL), and more, winning hundreds of millions of dollars in settlement.u23f8The FTC now has its sights set on AI.u23f8u201cThe FTC welcomes innovation, but being innovative is not a license to be reckless. We are prepared to use all our tools, including enforcement, to challenge harmful practices in this area,u201d FTCu2019s director Sam Levine stated in April.u23f8 Conversations with Owen Vaughan & Alessio Pagani: Blockchain can bring accountability to AIu23f8″,”metadata”:{“author”:”Steve Kaaru”},”pluginVersion”:”5.7.1″}; |
The top U.S. consumer protection agency has launched the country’s first major probe into OpenAI, the maker of ChatGPT. The Federal Trade Commission (FTC) is investigating whether OpenAI breached customer protection laws or caused reputational harm to its users in the company’s biggest regulatory threat.
In a criminal investigative demand (CID) issued to OpenAI, the FTC requests extensive details about how the company collects, utilizes, stores, and protects data. The FTC issued the 20-page CID this week, the Washington Post first reported on Thursday.
The regulator wants to know whether OpenAI has “engaged in unfair or deceptive privacy or data security practices.” It’s also probing whether the Sam Altman-led firm has “engaged in unfair or deceptive practices relating to risks of harm to consumers, including reputational harm, in violation of Section 5 of the FTC Act.”
In its 49 questions, the agency requested the company to provide information on all the third parties with access to its large language models. The questions also delve into how OpenAI obtains and protects the data it trains its large language models (LLMs) on, its top ten users and licensors, and more.
Another focus for the FTC is how OpenAI monitors ChatGPT and its other LLMs to protect against “generating statements about real individuals that are false, misleading and disparaging.”
ChatGPT has come under fire for generating false and misleading information since its launch last November. Last month, a radio host in Georgia sued the company after it claimed he had embezzled funds from a non-profit organization in the first defamation lawsuit against an AI chatbot.
In May, ChatGPT falsely accused a California university lecturer of sexually harassing a student and even invented a fake link to a non-existent article on the Washington Post as proof. In response, OpenAI promised to do better and claimed to be making progress.
The FTC has given the company 14 days to respond to the CID.
ChatGPT vs regulators
The FTC’s CID is the most significant regulatory action against OpenAI in the United States. While regulators have threatened to take any actions necessary to protect AI users, they have been all bark and no bite.
On their part, AI pioneers have launched a global campaign to coax regulators to take a soft approach to regulating the industry. OpenAI founder and CEO Altman has been the global icon for this campaign, using threats, grants, and grand promises to woo regulators across the U.S., Europe, and Asia.
Altman took to Twitter to call out the agency, claiming to be disappointed at its approach.
it is very disappointing to see the FTC’s request start with a leak and does not help build trust.
that said, it’s super important to us that out technology is safe and pro-consumer, and we are confident we follow the law. of course we will work with the FTC.
— Sam Altman (@sama) July 13, 2023
“…we protect user privacy and design our systems to learn about the world, not private individuals. We’re transparent about the limitations of our technology, especially when we fall short, and our capped-profits structure means we aren’t incentivized to make unlimited returns,” he added.
OpenAI will cooperate with the agency on the issue, Altman pledged.
In the FTC, Altman faces a formidable threat. Led by Lina Khan, the FTC has become President Joe Biden’s most prominent Silicon Valley czar. It has brought actions against behemoths like Microsoft (NASDAQ: MSFT), Twitter, Google (NASDAQ: GOOGL), and more, winning hundreds of millions of dollars in settlement.
The FTC now has its sights set on AI.
“The FTC welcomes innovation, but being innovative is not a license to be reckless. We are prepared to use all our tools, including enforcement, to challenge harmful practices in this area,” FTC’s director Sam Levine stated in April.
Conversations with Owen Vaughan & Alessio Pagani: Blockchain can bring accountability to AI
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