The Federal Trade Commission has launched an investigation into the ChatGPT artificial intelligence system of startup OpenAI, whose biggest investor is Microsoft. In another development for MSFT stock, the FTC late Wednesday filed an appeal to a federal judge's ruling that cleared Microsoft's acquisition of Activision Blizzard.
The FTC is probing whether OpenAI's ChatGPT service has harmed individuals by publishing false information about them, according to a Wall Street Journal report on Thursday. The regulatory agency has sent a letter to OpenAI requesting information.
The FTC letter also seeks information on OpenAI's marketing efforts, how it trains AI models, and handles users' personal information.
Usage of the ChatGPT service has soared since its debut in November. ChatGPT uses AI to produce humanlike responses to search queries based on data scooped up from the internet.
The news didn't seem to affect MSFT stock, which rose 1.6% to close at 342.66 on the stock market today. With Thursday's gain, Microsoft stock has advanced 40% in 2023.
MSFT Stock: AI Rivalry With Google Grows
OpenAI's launch of ChatGPT, a conversational chatbot, has triggered an AI war between Microsoft and Google-parent Alphabet. Both Microsoft and Google aim to embed content-creating generative AI technologies into their internet search and office productivity products.
In addition, Microsoft sells access to OpenAI's technology at its Azure cloud computing unit.
The FTC suffered a setback on Tuesday when a federal judge said Microsoft can close its $75 billion acquisition of video game maker Activision Blizzard. The ruling, which boosted MSFT stock, delivered a blow to the Biden administration's attempt to deter big mergers.
The FTC late Wednesday filed notice to appeal the court ruling. Meanwhile, Microsoft and Activision have set their own July 18 deadline to finalize the acquisition.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
