FTC Investigating ChatGPT Creator OpenAI over Consumer Protection Issues

The ChatGPT app is displayed on an iPhone in New York, May 18, 2023. (AP)
The ChatGPT app is displayed on an iPhone in New York, May 18, 2023. (AP)
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FTC Investigating ChatGPT Creator OpenAI over Consumer Protection Issues

The ChatGPT app is displayed on an iPhone in New York, May 18, 2023. (AP)
The ChatGPT app is displayed on an iPhone in New York, May 18, 2023. (AP)

The US Federal Trade Commission has launched an investigation into ChatGPT creator OpenAI and whether the artificial intelligence company violated consumer protection laws by scraping public data and publishing false information through its chatbot.

The agency sent OpenAI a 20-page letter requesting detailed information on its AI technology, products, customers, privacy safeguards and data security arrangements.

An FTC spokesperson had no comment on the investigation, which was first reported by The Washington Post on Thursday.

The FTC document the Post published told OpenAI that the agency was investigating whether it has “engaged in unfair or deceptive privacy or data security practices” or practices harming consumers.

OpenAI founder Sam Altman tweeted disappointment that the investigation was disclosed in a “leak,” noting that would “not help build trust,” but added that the company will work with the FTC.

“It’s super important to us that out technology is safe and pro-consumer, and we are confident we follow the law,” he wrote. “We protect user privacy and design our systems to learn about the world, not private individuals.”

OpenAI has faced scrutiny elsewhere. Italian regulators temporarily blocked ChatGPT over privacy concerns, and privacy watchdogs in France, Spain, Ireland and Canada also are paying closer attention, including some that have launched investigations after receiving complaints.

The FTC's move is a serious regulatory threat to the nascent but fast-growing AI industry, although it's not the only challenge facing these companies.

Comedian Sarah Silverman and two other authors have sued both OpenAI and Facebook parent Meta for copyright infringement, claiming that the companies' AI systems were illegally “trained” by exposing them to datasets containing illegal copies of their works.

On Thursday, OpenAI and The Associated Press announced a deal under which the AI company will license AP’s archive of news stories.

Altman has emerged as a global AI ambassador of sorts following his testimony before Congress in May and a subsequent worldwide tour, including to Europe, where officials are putting the final touches on the world's first comprehensive rules for AI.

The regulations will focus on risky uses such as predictive policing and social scoring and include provisions for generative AI to disclose any copyright material used to train its algorithms.

Altman himself has called for AI regulation, although he has tended to emphasize difficult-to-evaluate existential threats such as the possibility that superintelligent AI systems could one day turn against humanity.

Some argue that focusing on a far-off “science fiction trope” of superpowerful AI could make it harder to take action against already existing harms that require regulators to dig deep on data transparency, discriminatory behavior and potential for trickery and disinformation.

“It’s the fear of these systems and our lack of understanding of them that is making everyone have a collective freak-out,” Suresh Venkatasubramanian, a Brown University computer scientist and former assistant director for science and justice at the White House Office of Science and Technology Policy, told the AP in May. “This fear, which is very unfounded, is a distraction from all the concerns we’re dealing with right now.”

News of the FTC's OpenAI investigation broke just hours after a combative House Judiciary Committee hearing in which FTC Chair Lina Khan faced off against Republican lawmakers, who said she has been too aggressive in pursuing technology companies over allegations of wrongdoing.

Republicans said she has been harassing Twitter since its acquisition by Elon Musk, arbitrarily suing large tech companies and declining to recuse herself from certain cases. Khan pushed back, arguing that more regulation is necessary as the companies have grown and that tech conglomeration could hurt the economy and consumers.



Microsoft to Invest $10 bn for Japan AI Data Centers

Microsoft's Vice Chair and President Brad Smith (4th L) and (L-R) Sakura Internet Inc President and CEO Kunihiro Tanaka, SoftBank Corp. President and CEO Junichi Miyakawa, Microsoft Japan President Miki Tsusaka, hold a meeitng with Japan's Prime Minister Sanae Takaichi (2nd R) and Vice Minister of Economy, Trade and Industry Toshiro Ino (R) at the Prime Minister's Office in Tokyo on April 3, 2026. Kazuhiro NOGI / POOL/AFP
Microsoft's Vice Chair and President Brad Smith (4th L) and (L-R) Sakura Internet Inc President and CEO Kunihiro Tanaka, SoftBank Corp. President and CEO Junichi Miyakawa, Microsoft Japan President Miki Tsusaka, hold a meeitng with Japan's Prime Minister Sanae Takaichi (2nd R) and Vice Minister of Economy, Trade and Industry Toshiro Ino (R) at the Prime Minister's Office in Tokyo on April 3, 2026. Kazuhiro NOGI / POOL/AFP
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Microsoft to Invest $10 bn for Japan AI Data Centers

Microsoft's Vice Chair and President Brad Smith (4th L) and (L-R) Sakura Internet Inc President and CEO Kunihiro Tanaka, SoftBank Corp. President and CEO Junichi Miyakawa, Microsoft Japan President Miki Tsusaka, hold a meeitng with Japan's Prime Minister Sanae Takaichi (2nd R) and Vice Minister of Economy, Trade and Industry Toshiro Ino (R) at the Prime Minister's Office in Tokyo on April 3, 2026. Kazuhiro NOGI / POOL/AFP
Microsoft's Vice Chair and President Brad Smith (4th L) and (L-R) Sakura Internet Inc President and CEO Kunihiro Tanaka, SoftBank Corp. President and CEO Junichi Miyakawa, Microsoft Japan President Miki Tsusaka, hold a meeitng with Japan's Prime Minister Sanae Takaichi (2nd R) and Vice Minister of Economy, Trade and Industry Toshiro Ino (R) at the Prime Minister's Office in Tokyo on April 3, 2026. Kazuhiro NOGI / POOL/AFP

Microsoft said Friday it will invest $10 billion in Japan over the next four years to build artificial intelligence data centers and related infrastructure.

Power-hungry data centers -- warehouse-like facilities that power AI tools from chatbots to image generators -- are springing up worldwide, and the sector is growing particularly fast in Asia.

Microsoft President Brad Smith met Japanese Prime Minister Sanae Takaichi at her office on Friday to announce the investment, said AFP.

Smith said in a statement that it was a "response to Japan's growing need for cloud and AI services".

Businesses in Japan, the world's fourth-largest economy, are keen to get ahead in the fast-moving AI field.

But data centers expansion there is constrained by limited space and relatively expensive electricity.

The US tech giant will collaborate with Japan's SoftBank Group and Sakura Internet to expand domestic tech infrastructure, it said in a press release.

It follows a $2.9 billion two-year investment Microsoft announced in 2024 to bolster the country's push into AI and strengthen its cyber defenses.

The investment unveiled Friday also includes funds to enhance cybersecurity partnerships with Japanese government agencies, and to train one million engineers in cooperation with telecom and tech giants NTT and NEC.

A rush to build data centers in the Asia-Pacific region, especially in India and Southeast Asia, has sparked concerns over the facilities' environmental impact.

That includes increased demand on electricity grids that are often reliant on fossil fuels, and on local water supplies used to cool the hot servers inside.

Microsoft says it has pledged to become carbon negative, zero-waste and "water positive" by 2030.

On Tuesday, the company announced plans to invest more than $1 billion in cloud and AI data center infrastructure and operations in Thailand over the next two years.


Kia to Sell Lower-priced Electric Vehicle in US

A KIA logo on an electric vehicle is seen on display at the Canadian International AutoShow in Toronto, Ontario, Canada, February 13, 2025. REUTERS/Carlos Osorio
A KIA logo on an electric vehicle is seen on display at the Canadian International AutoShow in Toronto, Ontario, Canada, February 13, 2025. REUTERS/Carlos Osorio
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Kia to Sell Lower-priced Electric Vehicle in US

A KIA logo on an electric vehicle is seen on display at the Canadian International AutoShow in Toronto, Ontario, Canada, February 13, 2025. REUTERS/Carlos Osorio
A KIA logo on an electric vehicle is seen on display at the Canadian International AutoShow in Toronto, Ontario, Canada, February 13, 2025. REUTERS/Carlos Osorio

Kia said Wednesday it will begin selling a lower-priced electric vehicle in the United States later this year as automakers work to recharge EV sales.

The Korean automaker said at the New York Auto Show it will offer the EV3 in the US market starting later this year, Reuters reported.

Automakers are facing a tougher EV market in the United States after Congress repealed the $7,500 EV tax credit last year but higher gasoline prices in recent weeks has prompted new interest in the EVs.


Passengers Stranded in Moving Traffic after Robotaxi Outage in China

This file photo taken on August 1, 2024 shows a general view of a driverless robotaxi autonomous vehicle developed as part of tech giant Baidu's Apollo Go self-driving project, in Wuhan, in central China's Hubei province. (Photo by PEDRO PARDO / AFP)
This file photo taken on August 1, 2024 shows a general view of a driverless robotaxi autonomous vehicle developed as part of tech giant Baidu's Apollo Go self-driving project, in Wuhan, in central China's Hubei province. (Photo by PEDRO PARDO / AFP)
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Passengers Stranded in Moving Traffic after Robotaxi Outage in China

This file photo taken on August 1, 2024 shows a general view of a driverless robotaxi autonomous vehicle developed as part of tech giant Baidu's Apollo Go self-driving project, in Wuhan, in central China's Hubei province. (Photo by PEDRO PARDO / AFP)
This file photo taken on August 1, 2024 shows a general view of a driverless robotaxi autonomous vehicle developed as part of tech giant Baidu's Apollo Go self-driving project, in Wuhan, in central China's Hubei province. (Photo by PEDRO PARDO / AFP)

Some robotaxi passengers were left stranded in the middle of fast-moving traffic in a major Chinese city after their driverless vehicles stopped running, according to police and media reports on Wednesday.

A preliminary investigation indicates more than 100 robotaxis came to a halt because of a “system malfunction,” police in the city of Wuhan said in a statement, without elaborating. No injuries were reported.

One passenger told Chinese media that their robotaxi stopped after turning a corner. An instruction on a screen read: “Driving system malfunction. Staff are expected to arrive in 5 minutes.” After no one showed up, the passenger pushed an SOS button and was told that staff were on their way. The car door could be opened, so the passenger got out on their own.

It is the first time a mass shutdown of robotaxis has been reported in China, The Associated Press said. In December, many of Waymo’s self-driving cars came to a stop in San Francisco because of a power outage.

The taxis in Wuhan are operated by Baidu, a major Chinese internet and AI company that is expanding its Apollo Go robotaxi business to overseas locations in Europe and the Mideast.

Baidu did not have any immediate comment.

Police said reports that taxis were coming to a halt started coming in around 9 p.m., while media reports said multiple people were rescued.

While some passengers were able to exit their taxis on their own, others were afraid to get out because their vehicle had stopped in the middle lane of a ring road with other vehicles passing on both sides, the reports said. Ring roads are elevated roads without traffic lights designed to move traffic quickly in urban areas.

Baidu operates hundreds of robotaxis in Wuhan, which hosted an early pilot project for the company.