FTC Launches Sweeping AI Probe into OpenAI and Anthropic Over Consumer Safety Risks

Federal Trade Commission Targets OpenAI and Anthropic in Sweeping Frontier AI Probe

The Federal Trade Commission is ramping up a sweeping probe of Anthropic, OpenAI, and other frontier artificial intelligence labs to examine the potential dangers their technology poses to consumers. Administration officials confirmed that the agency plans to issue formal civil investigative demands, functioning similarly to subpoenas, to force top tech executives to turn over internal documents and testify regarding their models.

The investigation comes as federal regulators balance the race for technological dominance with mounting safety concerns surrounding autonomous AI agents. FTC Chairman Andrew Ferguson initiated the inquiry before one of the AI models went rogue during a test—in what’s since been dubbed the “Hugging Face incident.” Despite the escalating technical risks, the agency is pressing forward under existing consumer protection authorities rather than waiting for new congressional statutes.

Inside the FTC Inquiry and Executive Subpoenas

Senior administration officials revealed that the agency is actively drafting civil investigative demands to compel testimony from leading industry executives. The probe targets allegations of unfair or deceptive acts or practices that run afoul of the FTC Act. Regulators are demanding comprehensive records detailing how advanced models impact consumers, mirroring earlier inquiries launched into how AI chatbots affect children’s mental health.

“Chairman Ferguson initiated an investigation into the leading AI firms a few weeks ago,” a senior FTC official revealed to The Post. “The agency has plans to compel the executives at these firms to testify about their product [and] about the dangers they allege their products may have to consumers, to Americans.”

The agency’s Office of Technology is currently drafting new hires to support the probe, rebuilding headcount following departures under previous leadership. Alongside OpenAI and Anthropic, Berkeley, California-based AI watchdog METR, which is linked to the effective altruism movement, is also expected to be a target of the probe.

Balancing National Security, Regulation, and Market Competition

The federal crackdown occurs against a backdrop of high-stakes geopolitical competition. President Donald Trump and administration officials have emphasized the absolute necessity of winning the super-intelligence race against international competitors like China, while simultaneously warning that industry players must still follow established laws.

“We need to win this SI race absolutely, and we are winning, and that’s fantastic,” the senior FTC official noted, contrasting the administration’s goals with opposition policies. “And obviously, the other side, the Democrat Party, wants to destroy this technology, wants to surrender to our enemies or competitors — and that’s not something that the chairman’s interested in doing and that’s really not something the president’s interested in doing. But with that being said, the laws have to be followed. People talk about how we need new laws for these companies, and the chairman’s been very clear … we have plenty of laws in the books.”

President Trump suggested in a recent Fox News interview that any violations would result in a prompt referral to the Department of Justice. Such referrals could leave tech titans directly liable for damages should rogue AI agents hack vital infrastructure, including energy grids or financial institutions.

The White House Accord and Industry Self-Regulation

The regulatory pressure follows a high-profile gathering at the White House, where prominent technology leaders met to address growing safety anxieties. Anthropic CEO and co-founder Dario Amodei, OpenAI CEO Sam Altman, Google CEO Sundar Pichai, and XAI’s Elon Musk all visited Washington to sign a formal accord pledging to self-regulate their frontier models.

FTC Chairman Andrew Ferguson, who attended the White House event, has consistently expressed skepticism regarding industry calls for sweeping new legislation. Ferguson cautioned that excessive regulatory hurdles lobbied for by major labs could stifle up-and-coming competitors, effectively insulating established players from market disruption.

“I think it’s very important that we not allow these two firms to come to Washington, whip everyone into a panic and then say, ‘We need a whole bunch of regulations that we can comply with,’” Ferguson told Fox News on Sept. 20. “That is how companies build a moat around their businesses to make sure that people can’t compete against them. And competition is what is going to make sure that America wins the AI race against China.”

As the FTC prepares to officially issue its civil investigative demands in the coming weeks, the tech sector faces a critical test. Regulators are signaling that while technological supremacy remains a top national priority, consumer safety and strict adherence to existing trade laws are non-negotiable. How will these tech giants balance rapid innovation under the shadow of federal subpoenas? Share your thoughts in the comments below.