OpenAI is under investigation by the Federal Trade Commission (FTC) over whether its artificial intelligence-powered tools including ChatGPT have harmed consumers.

In a letter sent to OpenAI, first reported by The Washington Post and confirmed by The Wall Street Journal, the FTC informed the company it is probing whether it has "engaged in unfair or deceptive" practices related to data security or "relating to risks of harm to consumers."

The federal agency also said it is determining whether fining OpenAI "would be in the public interest."

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In the 20-page document, the FTC demands OpenAI describe in detail a litany of its processes for developing and training any large language models, as well as policies and procedures for assessing "risk and safety" before releasing new products.

OpenAI did not immediately respond to FOX Business' request for comment. The FTC declined to comment.

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The FTC's move comes after months of warning that new generative AI tools like ChatGPT are on its radar.

FTC Chair Lina Khan said during a virtual press event in April that the agency would "not hesitate to crack down on this unlawful behavior" if AI tools are being used to further "unfair, deceptive practices or unfair methods of competition."

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She added, "There is no AI exemption to the laws on the books." 

Reuters contributed to this report.