- The FTC is investigating OpenAI’s lack of transparency regarding data and privacy.
- The FTC has asked Open AI for details of how and where it collects data.
- The investigation leads to more legal challenges against the AI company behind ChatGPT.
OpenAI may quickly need a team of good lawyers (probably those who don’t use ChatGPT to write their instructions).
The U.S. Federal Trade Commission has launched an investigation into OpenAI to determine whether the company is violating consumer protection laws due to its lack of transparency on data collection and privacy, according to documents published by The Washington Post. bottom.
In a 20-page document obtained by The Post, the FTC asked OpenAI how it will provide all data sources used to train LLM (Large Language Models), the AI technology underlying the chatbot ChatGPT. was ordered to explain in detail where it was collected. . The agency also asked OpenAI to explain the precautions it takes to avoid the inclusion of personal information in datasets used to train LLMs.
If OpenAI is found to be in violation of these laws, OpenAI may be forced to pay fines and be ordered to follow strict data management practices outlined in the consent decree (e.g., technology such as Twitter and Facebook). The company has been issued a consent order by the FTC in 2016) past. )
The FTC may be the biggest regulatory threat looming over the company that has become the epitome of generative AI’s surge in popularity since the release of ChatGPT last November.
And with the growing number of lawsuits being filed against open AI, the company could not only be at the forefront of new frontiers in technology, but also a harbinger of potential legal regulation of the generative AI industry. there is.
Similar to the FTC’s current investigation, many of the existing legal challenges against OpenAI relate to the company’s data collection to train ChatGPT.
In June, 16 anonymous plaintiffs sued OpenAI, claiming the company collected “massive amounts of personal data” from the web for the development of ChatGPT.
Many authors, including comedian Sarah Silverman, have also sued OpenAI. They claimed the company collected copyrighted material to train ChatGPT, citing the chatbot’s ability to provide accurate summaries of books.
OpenAI CEO and co-founder Sam Altman has literally lobbied world leaders on generative AI, urging lawmakers to consider deregulating the rapidly emerging technology. reportedly did.
Altman, however, has yet to comment on the recent legal challenges against his company. OpenAI did not immediately respond to a request for comment on the investigation. An FTC spokeswoman declined to comment when contacted by an insider.
Altman has said in the past that he wants to prevent OpenAI from getting into legal trouble. He told an audience at a tech conference in Abu Dhabi that he had no plans to list OpenAI, fearing that its unusual business model would lead to legal challenges from investors.
