FTC Could be Probing Microsoft-backed OpenAI

In what could turn out to be the most significant regulatory threat for AI, the Federal Trade Commission (FTC) has opened an expansive investigation into the tech giant, Microsoft (NASDAQ: MSFT) -backed AI company, OpenAI, according to a Washington Post report. The agency will look into whether its popular chatbot, ChatGPT has violated consumer protection laws by gaining access to personal data and putting personal reputations at risk

According to the report, the FTC has demanded records from OpenAI to know how it addresses risks related to AI models. Even earlier, the FTC warned that existing consumer protection laws should apply to AI and the Federal Government is also looking at bringing in new regulation for AI.

The troubles for OpenAI aside, analysts remain bullish about MSFT stock. They have a Strong Buy consensus rating on the stock with 30 Buys, four Holds, and one Sell.