The FTC Is Investigating OpenAI -- Here's the Worst Possible Outcome for Investors
OpenAI has turned the tech industry upside down in just a few months. The launch of ChatGPT has dazzled college students and tech CEOs alike and set off a new "race" in the tech sector, according to (NASDAQ: MSFT) CEO Satya Nadella. Indeed, his company, which has invested $13 billion in OpenAI, and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are already battling for supremacy in generative AI.
However, the emergence of ChatGPT and other AI chatbots has also sparked a new round of concerns at the potentially negative consequences of artificial intelligence, which is fast surpassing human capabilities in a broad range of subjects. CEOs including OpenAI's Sam Altman have asked for artificial intelligence to be regulated, and a petition from the Future of Life Institute signed by academics and even Tesla CEO Elon Musk called for a six-month "pause" in generative AI development.
Now, OpenAI is getting its first serious pushback from regulators because the Federal Trade Commission (FTC) has opened an investigation into the AI start-up. In a 20-page letter, the agency said it's examining OpenAI's security practices, including how it trains its models, what kind of data it uses, and whether it violates privacy rules.
Source Fool.com
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