State AGs Open Investigation Into OpenAI
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- A coalition of state attorneys general opened an investigation into OpenAI, with New York's AG serving a subpoena on Friday seeking documents on advertising, user engagement and retention, model sycophancy, consumer and health data handling, and treatment of minors and seniors (per The Wall Street Journal)
- OpenAI said it "takes the concerns raised by state attorneys general seriously" and highlighted existing safeguards including age prediction, parental tools, and a ban on advertising targeted at kids
- OpenAI declined to specify which states are part of the investigation or detail what information was requested
- Florida Attorney General James Uthmeier sued OpenAI and CEO Sam Altman earlier this month, alleging the company and Altman "ignored internal and external safety warnings, put children at great risk, and allowed a dangerous product to reach millions of Floridians"
- Altman publicly apologized to the community of Tumbler Ridge, Canada after a mass shooting, acknowledging OpenAI flagged and banned the suspected shooter's ChatGPT account but failed to alert law enforcement
- OpenAI filed confidentially to go public this week, even as it faces the multi-state probe, the Florida suit, other litigation over copyright and user suicides, and Elon Musk's appeal of his recently defeated lawsuit
Why it matters: The multi-state investigation broadens OpenAI's legal exposure from a single Florida lawsuit to a coordinated coalition probe, arriving the same week the company filed confidentially to go public—meaning prospective IPO investors will see this regulatory risk materialize in real time.
