OpenAI's greatest threat could be FTC, not a rival AI company

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Open AI is being investigated by the FTC over data and privacy concerns. It could be ChatGPT's biggest threat yet.

, the FTC ordered OpenAI to detail how and where it has collected all sources of data used to train its large language models, or LLMs, which is the AI technology at the foundation of its chatbot ChatGPT. The agency also demanded OpenAI explain the precautions it takes to avert personal information from falling into datasets used to train its LLMs.

If found to have been in violation of these laws, OpenAI could be forced to pay fines and be ordered to follow strict data-management practices outlined in a consent decree The FTC may be the biggest regulatory threat looming over the company, which has been the poster child of generative AI's surge in popularity since its release of ChatGPT last November.

And with lawsuits filed against Open AI mounting, the company may not just be a trailblazer for a new frontier of technology, but a harbinger of potential legal regulations on the generative-AI industry. Like the FTC's current probe, many existing legal challenges to OpenAI concern the company's collection of data to train ChatGPT.scooped up"massive amounts of personal data" off the web to develop ChatGPT.

 

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