The largest regulatory threat to the Microsoft-backed business yet comes from the U.S. Federal Trade Commission, which has launched an inquiry into OpenAI over allegations that it violated consumer protection rules by putting users’ personal information and reputations at danger.

The manufacturer of the generative artificial intelligence chatbot ChatGPT, OpenAI, was handed a 20-page request for records by the FTC this week regarding how it manages risks associated with its AI models.

The government is looking into whether OpenAI used dishonest tactics that caused “reputational harm” to customers.

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