State Attorneys General Are Now Investigating OpenAI
OpenAI is under scrutiny from multiple state law enforcement offices, as a coalition of state attorneys general has reportedly launched a coordinated investigation into the company. According to the Wall Street Journal, New York’s attorney general served OpenAI with a subpoena on Friday, demanding documents that span a striking range of concerns including its advertising practices, user engagement and retention strategies, model sycophancy, consumer and health data handling, and how it treats minors and seniors on its platforms.
The OpenAI state attorneys general investigation adds significant legal pressure to a company that has been managing one legal battle after another. A company spokesperson confirmed to the WSJ that OpenAI is cooperating and said the company takes the concerns raised seriously, adding that it intends to engage constructively with the offices involved. OpenAI has not disclosed which states are part of the coalition.
Bloomberg reported that the spokesperson also pointed to recent product updates, noting that ChatGPT now includes what the company describes as a more protective experience for minors and people going through difficult situations, with safeguards designed to connect them to real-world resources and trusted contacts.
The timing is notable. OpenAI recently defeated Elon Musk in court after he accused the company of betraying its founding mission, though Musk’s team has signaled it will appeal. The company is also facing separate suits over alleged copyright infringement and ChatGPT’s involvement in multiple suicides. Earlier this month, Florida Attorney General James Uthmeier sued OpenAI and CEO Sam Altman directly, claiming the company put children at risk by ignoring safety warnings and allowing a dangerous product to reach millions of Floridians.
All of this comes as OpenAI has quietly filed to go public, making the growing legal cloud around the company a matter that potential investors will be watching closely.
