Google, Meta, OpenAI, xAI Among Companies Facing FTC Inquiry On AI Chatbot Impact On Children – Here’s The Full List

The Federal Trade Commission on Thursday ordered Alphabet Inc. (GOOG/GOOGL), OpenAI, Meta Platforms Inc. (META), Elon Musk’s xAI, and three other AI chatbot developers to provide information on how their technology affects children.

The antitrust and consumer protection agency stated that the orders are intended to facilitate its investigation into how companies measure, test, and monitor their chatbots, as well as the steps taken to limit usage by children and teenagers.

FTC Commissioner Melissa Holyoak said the orders are part of a Section 6(b) study into the risks posed by generative AI chatbots. “I have been concerned by reports that AI chatbots can engage in alarming interactions with young users, as well as reports suggesting that companies offering generative AI companion chatbots might have been warned by their own employees that they were deploying the chatbots without doing enough to protect young users,” Holyoak wrote.

Google’s stock traded flat in midday trade on Thursday as retail sentiment on Stocktwits dipped to ‘neutral’ from ‘bullish’ over the past day. Meanwhile, Meta’s stock edged 0.4% lower with retail sentiment trending in ‘neutral’ territory. Sam Altman-led OpenAI and rival xAI aren’t publicly listed, but retail sentiment around the former was in ‘bullish’ territory while the latter drew ‘bearish’ sentiment.

The Wall Street Journal reported last week that such an order was imminent, noting growing pressure on the Trump administration and Congress from parents and advocacy groups to strengthen child protections on social media and AI platforms. Recent reports of children taking their own lives after developing close ties with chatbots have amplified those concerns. Both Meta and OpenAI announced new restrictions last week to prevent their chatbots from discussing suicide.

In its orders, the commission said it will seek data on the age groups using companion chatbots, the amount of time spent on them, and which characters are most popular. It also wants information on the prevalence of sexually themed interactions between chatbots and minors, the use of parental controls, and whether companies’ data collection practices vary based on age. Developers will also be required to provide details on how they test, monitor, and mitigate potential harms tied to chatbot use.

The seven companies subject to the FTC's orders are:

1. Alphabet
2. OpenAI
3. Meta Platforms
4. Meta’s Instagram unit
5. Snap
6. xAI
7. Character Technologies Inc.

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