FTC probes OpenAI, Anthropic over consumer protection

the federal trade commission is investigating openai, anthropic, and other leading ai labs over potential consumer protection violations. ftc chair andrew ferguson will compel document handovers and executive questioning through legally binding 'civil investigative demands'. this investigation follows a series of incidents, including the hugging face hacking incident, and poses an existential risk for the labs. the ftc had already said it would hold ai developers liable for their agents' behavior.