OpenAI faces sweeping investigation from state attorneys general over ChatGPT user harm

OpenAI faces investigation from state attorneys general

A coalition of state attorneys general has reportedly opened an investigation into OpenAI. The company was served with a subpoena from New York's attorney general on Friday, according to The Wall Street Journal. That subpoena sought documents related to a broad range of topics including the company's advertising, user engagement and retention, model sycophancy, handling of consumer data and health data, and treatment of minors and seniors. TechCrunch has reached out to OpenAI and the New York attorney general's office for confirmation. A company spokesperson told the WSJ that OpenAI is cooperating with the investigation. "AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way," the spokesperson said in a statement. "We take the concerns raised by state attorneys general seriously and intend to engage constructively with their offices." According to Bloomberg, the spokesperson also said that ChatGPT now "includes a more protective experience for minors and people experiencing difficult situations, with safeguards that direct them to real-world resources and trusted human contacts." The company declined to specify which states are involved in the investigation or to share more details about what information was requested. OpenAI recently defeated its co-founder Elon Musk in a high-profile trial, after Musk accused the company of violating its founding agreement. (Musk's lead attorney said he will appeal the decision.) However, OpenAI still faces lawsuits over everything from alleged copyright infringement to ChatGPT's alleged role in suicide. Earlier this month, Florida Attorney General James Uthmeier sued OpenAI and its CEO Sam Altman, claiming that OpenAI and Altman "ignored internal and external safety warnings, put children at great risk, and allowed a dangerous product to reach millions of Floridians." Altman recently apologized to the community of Tumbler Ridge, Canada after a mass shooting; he acknowledged that OpenAI failed to alert law enforcement after the company flagged and banned the suspected shooter's ChatGPT account. The company announced this week that it has filed confidentially to go public.

OpenAI hit with sweeping probe from massive coalition of 42 US state attorneys general just days after reported IPO filing -- subpoena targets ChatGPT maker's ads, data practices, handling of minors, model sycophancy, and safety policies

A coalition of US state attorneys general has launched a sweeping investigation into OpenAI. According to a Wall Street Journal report, OpenAI was served on June 12 with a broad subpoena spearheaded by New York Attorney General Letitia James. The subpoena seeks documents related to a wide range of the company's activities and their potential impact on users, including OpenAI's advertising practices, user engagement and retention strategies, handling of consumer and health data, activities involving minors and seniors, use of deep learning models, model sycophancy, and internal company policies. In a statement following the subpoena, an OpenAI spokesperson said, "AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way. We take the concerns raised by state attorneys general seriously and intend to engage constructively with their offices." The investigation comes just five days after OpenAI revealed it had confidentially filed paperwork with the Securities and Exchange Commission, seeking to go public via an IPO that will reportedly value the company at up to $1 trillion. While the subpoena appears to be an information-gathering step rather than a formal accusation of wrongdoing, its breadth suggests state regulators are examining both OpenAI's business practices and the safety risks associated with increasingly human-like AI systems. The company is already facing real legal troubles elsewhere. Earlier this month, Florida officially sued OpenAI and CEO Sam Altman, following a criminal inquiry launched in April 2026. The civil lawsuit, filed by Florida Attorney General James Uthmeier on June 1, accuses OpenAI of knowingly releasing and aggressively marketing ChatGPT to the public, including children, while allegedly concealing serious risks, suppressing internal safety warnings, and misleading users about the product's dangers. Florida's complaint claims the chatbot can facilitate harm, including self-harm and violence, while also alleging that OpenAI collects data from minors without meaningful parental oversight and has downplayed the risk of dangerous errors. In addition to these concerns, the recent subpoena focuses on OpenAI's handling of consumer and health-related data, a key issue given that users often share sensitive personal information with AI chatbots. Unlike traditional search engines, conversational AI systems can invite users to disclose medical concerns, emotional distress, financial details, family problems, or other private information during ordinary use. The subpoena reflects a broader reckoning over a technology that has scaled faster than the legal frameworks meant to govern it. For now, the investigation is an information-gathering exercise rather than a finding of wrongdoing, and OpenAI has said it takes the attorneys general's concerns seriously and will cooperate with the investigation. Follow Tom's Hardware on Google News, or add us as a preferred source, to get our latest news, analysis, & reviews in your feeds.

OpenAI under investigation by group of state attorneys general, source says

June 12 (Reuters) - A coalition of U.S. state attorneys general has opened a sweeping investigation into OpenAI, a source familiar with the matter said on Friday. The ChatGPT maker was served on Friday with a subpoena seeking documents related to a wide range of its activities and the impact on users, including advertising, user engagement and retention, and the handling of consumer and health data, the source said. The subpoena, sent by New York's ⁠attorney general, also seeks information on activities related to minors and seniors, deep learning models and internal company policies, the source added. The probe represents the latest legal challenge for IPO-bound OpenAI, which is being sued by Florida for allegedly misrepresenting the safety of its ChatGPT platform. The source declined to be identified while discussing the investigation, which has not been publicly announced. An OpenAI spokesperson said: "AI is a new and powerful technology, and we work every day to safely bring ⁠its benefits to people in a responsible way. We take the concerns raised by state attorneys general seriously and intend to engage constructively with their offices." The Wall Street Journal first reported the probe on Friday. The Florida lawsuit, the first by a U.S. ⁠state, claims the platform has harmed children by providing information to school shooters, offering guidance on self-harm and addicting young users. A Canadian mother also sued OpenAI and Chief Executive Sam ⁠Altman in U.S. court on Thursday, alleging ChatGPT encouraged her daughter to kill herself. OpenAI said on Monday it had confidentially filed for a U.S. IPO that ⁠a source said could come as early as September and value the company at up to $1 trillion. Reporting by Carlos Méndez in Mexico City and Deepa Seetharaman in San Francisco; Editing by Tom Hogue and William Mallard Our Standards: The Thomson Reuters Trust Principles., opens new tab

OpenAI hit with multistate probe into possible user harm as its IPO looms

NEW YORK (AP) -- OpenAI received a subpoena from several states as part of a probe into the safety of users of its chatbot as it prepares to offer stock to the public for the first time. The company behind the popular chatbot, ChatGPT, said it will respond to the inquiry "constructively" and that it already has in place measures to protect its customers. "AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way," an emailed statement from a spokesperson said. "We take the concerns raised by state attorneys general seriously." OpenAI has drawn criticism for ChatGPT allegedly offering encouraging words to users thinking of killing themselves or engaging criminal acts. It also has come under scrutiny for how its uses health data and other personal information of its customers. On Thursday, the company was sued by a Canadian blaming the chatbot for her daughter's decision to hang herself. Earlier in June, the Florida attorney general sued the company after two separate shootings where alleged gunmen were reported to have asked ChatGPT questions while planning their crimes. OpenAI said in a statement that its models repeatedly encouraged the individuals to seek real-world support, including from mental health professionals. The company also said it has cooperated with law enforcement in both shooting cases. The new probe comes just a few day after it filed documents with U.S. security regulators for a highly anticipated initial public offering of stock. Artificial intelligence rival SpaceX celebrated its own IPO on Friday. The rocket maker founded by Elon Musk also runs an AI business responsible for a rival chatbot called Grok. How governments should respond to the potential for good and possible dangerous of AI is becoming a big political issue. Regulators Europe opened investigations into Musk's Grok over antisemitic content and sexualized material, include deepfake nudes. And another chatbot company preparing an IPO, Anthropic, was directed by the Trump administration Friday to shut down two of its online models to users abroad for national security reasons. The OpenAI subpoena was earlier reported by The Wall Street Journal. The Associated Press sent emails to a dozen state attorneys general Saturday asking for details of the probe but has not received any responses. In its statement, OpenAI highlighted measures it has taken to keep children using its chatbot safe. "Today's ChatGPT includes a more protective experience for minors and people experiencing difficult situations, with safeguards that direct them to real-world resources and trusted human contacts," the statement read in part. "We believe kids should be treated like kids, which is why we built age prediction, released parental tools to guide their children's use of AI, and disallowed advertising that targets kids."

OpenAI is facing investigation from a group of state attorneys general - Engadget

OpenAI is under investigation by a coalition of state attorneys general, according to the Wall Street Journal. On Friday, June 12, the company received a subpoena seeking information and documents related to its activities and impact on users. The Journal said it viewed the subpoena sent by New York's attorney general. Based on what the publication saw, the AGs are asking for documentation about the company's advertising, user engagement and retention, as well as its handling of its users' data and health information. They also want to know about the company's activities related to minor and senior users, its deep learning models, its policies and its models' sycophancy. "AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way," an OpenAI spokesperson said in a statement to the Journal. "We take the concerns raised by state attorneys general seriously and intend to engage constructively with their offices." It's unclear what prompted the investigation, but tech companies developing AI products have been under scrutiny by state AGs for quite a while now. Last year, a group of 44 state AGs sent a letter to Meta, Google, Apple, Microsoft, OpenAI, Anthropic, Perplexity AI and XAI, asking them to protect children from being exposed to inappropriate and potentially harmful chatbot interactions. In April, Florida Attorney General James Ulthmeier opened a criminal investigation into OpenAI, because the suspect in the 2025 Florida State University mass shooting reportedly used ChatGPT. More recently, another parent filed a wrongful death lawsuit against OpenAI, accusing the company of not implementing enough safeguards to protect users from taking their own life. The lawsuit claimed that the plaintiff's daughter who died by suicide discussed her suicidal thoughts and plans with the chatbot in the months leading up to her death. However, the company didn't alert the family or authorities. OpenAI was named as a defendant in the first ever wrongful death lawsuit linked to a chatbot, as well. Just a few days ago, OpenAI filed paperwork with the Securities and Exchange Commission to go public. It hasn't decided on timing and pricing yet.

OpenAI says it's engaging 'constructively' with state AGs about concerns

OpenAI on Friday said it intends to "engage constructively" with state attorneys general and will take their concerns "seriously," a spokesperson told CNBC. The company's statement landed after The Wall Street Journal reported that a coalition of state attorneys general opened an investigation into the artificial intelligence company. OpenAI was reportedly served with a subpoena seeking information about its approach to advertising, consumer and health data, minor and senior users and models, among other activities. "AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way," the spokesperson said. OpenAI rocketed into the mainstream in 2022 following the launch of its chatbot ChatGPT, which now supports more than 1 billion monthly active users. The company has ballooned into one of the most valuable private companies on the planet, reaching a valuation of $850 billion earlier this year. OpenAI is now gearing up for an IPO that could land as soon as this year, announcing on Monday that it confidentially filed its prospectus with the Securities and Exchange Commission. But along with the company's meteoric rise has come mounting legal woes over purported harms caused by its technology. Florida Attorney General James Uthmeier sued OpenAI earlier this month, alleging that the company knowingly released an unsafe product, namely ChatGPT, that could harm users. Uthmeier said during a press conference at the time that he expected other states to take similar action. The company is being sued by seven families of the victims of the Tumbler Ridge mass shooting, which took place in Canada in February. The families allege that the attacker used ChatGPT to plan the attack, and that the company did not do anything to stop it. OpenAI is also facing a number of wrongful death lawsuits, which allege that ChatGPT drove users to experience harmful delusions and, in some cases, to commit suicide. "Today's ChatGPT includes a more protective experience for minors and people experiencing difficult situations, with safeguards that direct them to real-world resources and trusted human contacts," OpenAI's spokesperson said Friday. If you are having suicidal thoughts or are in distress, contact the Suicide & Crisis Lifeline at 988 for support and assistance from a trained counselor.

State Attorneys General Are Investigating OpenAI

A coalition of states has opened a wide-ranging investigation into the artificial intelligence start-up OpenAI, the company said Saturday, adding to a growing backlash over A.I. State attorneys general subpoenaed OpenAI on Friday asking for internal documents on its practices, including its handling of user data, safety of minors and advertising activities, according to the company. New York, Colorado and other states are involved in the investigation, according to two people familiar with the probe, who spoke on condition of anonymity to discuss an ongoing legal matter. "We take the concerns raised by state attorneys general seriously and intend to engage constructively with their offices," OpenAI said in a statement. The company added that the newest version of its model, ChatGPT, includes more safeguards like parental controls to protect children. "None of this changes what families have gone through, but we are committed to learning, improving, and getting this right," the company said. OpenAI declined to provide further details on the investigation, which was first reported by The Wall Street Journal. What you should know about anonymous sources. The Times makes a careful decision any time it shields the identity of a source. The information the source supplies must be newsworthy, credible and give readers genuine insight. Learn more about our process. A.I. has drawn increasing scrutiny as the number of cases of children harming themselves after using the technology has grown along with A.I.-generated scams. Concerns about the technology's ability to replace humans, as well as soaring energy costs from the data centers that power it, have added to the angst. The Trump administration on Friday barred the A.I. start-up Anthropic from allowing foreign nationals access to its new Mythos and Fable 5 A.I. systems, citing national security concerns. President Trump, who until recently took a largely hands off approach to regulating the technology, also signed an executive order this month that asked tech companies to voluntarily give the government oversight of new A.I. models before releasing them to the public. States have also increasingly taken matters into their own hands. They have introduced dozens of bills this year to put guardrails around A.I. More than 100 state laws now ban chatbots for young users, require system testing for security risks and help protect copyrighted materials from being used by A.I. systems. (The New York Times has sued OpenAI and its partner, Microsoft, accusing them of copyright infringement of news content related to A.I. systems. OpenAI and Microsoft have denied those claims.) California's governor, Gavin Newsom, issued an executive order last month to explore an overhaul of labor policies, an attempt to front run a potential mass job displacement caused by A.I. The order from Mr. Newsom, a Democrat, requires state agencies to work with academics, labor groups and the A.I. industry to study how to subsidize companies that keep employees instead of replacing them with the technology. State investigations can lead to prolonged and costly lawsuits. In 2023, New Mexico investigated Meta for child safety violations on its social media platforms, including predators' ability to contact minors. Raúl Torrez, the state's attorney general, eventually sued the company. In March, he persuaded a jury to award the state $375 million in damages. Florida became the first state to sue OpenAI earlier this month, arguing in a lawsuit that the company's chatbot, ChatGPT, posed a risk to children. The company had also failed to disclose the dangers of its product to the public, the state's lawsuit said. Florida's attorney general has also opened a criminal investigation into OpenAI based on a review of messages between the chatbot and the man accused of a deadly shooting at Florida State University last year. In January, California's attorney general, Rob Bonta, announced an investigation into x.AI, a unit of SpaceX, for generating non-consensual sexualized A.I.-manipulated images of real women and minors. Kentucky has also sued Character.AI, a maker of A.I. companions, for violating state consumer protection laws by exposing children to dangerous uses of the technology.

42 state AGs probe OpenAI days after IPO filing

A coalition of 42 state attorneys general has opened an investigation into OpenAI, with New York serving a subpoena demanding records on advertising, user data, minors, and internal policies. The probe lands days after OpenAI filed confidentially for an IPO at an $852 billion valuation, adding material legal risk to one of the largest public listings in history. A coalition of 42 state attorneys general has opened a sweeping investigation into OpenAI, first reported by the Wall Street Journal on Thursday. New York's attorney general served the company with a subpoena on Friday demanding documents on advertising, user engagement and retention, consumer and health data, its treatment of minors and seniors, deep-learning models, and internal company policies. OpenAI said it is cooperating. A spokesperson told Bloomberg the company takes the concerns "seriously" and intends to "engage constructively" with the attorneys general's offices. What the probe covers The subpoena's scope is broad. It seeks records on how OpenAI handles consumer and health data, how it markets ChatGPT to vulnerable populations including children and seniors, and what its internal policies say about safety testing before product releases. State enforcers appear to be testing whether OpenAI's business model, marketing claims, and safety controls created harm for users, particularly vulnerable ones. The IPO collision The timing is difficult to ignore. OpenAI filed confidentially for an initial public offering on 8 June, five days before the investigation became public. The company closed a $122 billion funding round in March at an $852 billion valuation. Goldman Sachs, Morgan Stanley, and JPMorgan are leading the offering. A multistate investigation of this scale will need to be disclosed in OpenAI's S-1 prospectus. It adds a layer of legal risk to what was already a crowded AI IPO window, with Anthropic also filing confidentially last week at a $965 billion valuation. A growing legal siege The multistate probe is the latest in a rapidly escalating sequence of legal actions against the ChatGPT maker. On 1 June, Florida became the first US state to sue OpenAI, filing an 83-page complaint that names CEO Sam Altman personally and treats ChatGPT as a defective product under product liability law. Florida's attorney general, James Uthmeier, is also running a separate criminal investigation into OpenAI over ChatGPT's alleged role in the April 2025 mass shooting at Florida State University. Prosecutors reviewed chat logs showing the suspect used ChatGPT to seek advice on weapons, ammunition, timing, and campus locations. Individual lawsuits now number in the dozens. Parents of 16-year-old Adam Raine allege ChatGPT validated their son's suicidal ideation and provided methods for self-harm rather than directing him to help. A Canadian mother sued OpenAI this week alleging the chatbot encouraged her daughter's suicide. Seven families have filed claims linked to the Tumbler Ridge school shooting in British Columbia. The child safety question Children's safety sits at the centre of both the state probe and the litigation wave. Florida's civil lawsuit seeks a court order blocking OpenAI from collecting data from users under 13 without parental consent, a standard already codified in federal law under COPPA. OpenAI's spokesperson said the current version of ChatGPT includes "a more protective experience for minors and people experiencing difficult situations, with safeguards that direct them to real-world resources and trusted human contacts." The company did not say when those safeguards were introduced or provide details on how they work. What comes next The legal playbook now being applied to AI follows the trajectory that reshaped social media regulation. In March, juries in New Mexico and California found Meta and Google liable for negligence related to social media addiction in minors, awarding a combined $381 million. Courts have rejected Section 230 defences for chatbots, removing a shield that protected social media companies for decades. The question for OpenAI is whether its safety controls can withstand the same scrutiny. OpenAI said it takes the concerns raised by state attorneys general seriously. The company declined to identify which states are involved or what specific topics the investigation covers.

A group of state attorneys general are investigating OpenAI

OpenAI is facing a multistate investigation, according to the Wall Street Journal, which reported that the company received a subpoena on Friday seeking documents related to its business practices and impact on users. The Journal, which says it viewed the subpoena from New York's attorney general, reports that investigators are asking about OpenAI's advertising practices, user engagement and retention, data handling, and how the company manages interactions with minors and senior users. The AGs are also reportedly asking about model sycophancy -- a growing concern in the AI industry around chatbots that tell users what they want to hear rather than what's accurate. An OpenAI spokesperson told the Journal the company takes the concerns seriously and plans to work constructively with the attorneys general. What triggered the investigation isn't clear, but OpenAI has been accumulating legal and regulatory headaches for a while. Florida's attorney general opened a criminal investigation into the company in April following reports that the suspect in the 2025 Florida State University mass shooting had used ChatGPT. The company has also faced wrongful death lawsuits tied to chatbot interactions. All of this comes just days after OpenAI filed paperwork with the SEC to go public. Disclosure: Ziff Davis, Mashable's parent company, in April 2025 filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.

OpenAI hit with multistate probe into possible user harm, days after filing for a highly anticipated IPO | Fortune

OpenAI received a subpoena from several states as part of a probe into the safety of users of its chatbot as it prepares to offer stock to the public for the first time. The company behind the popular chatbot, ChatGPT, said it will respond to the inquiry "constructively" and that it already has in place measures to protect its customers. "AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way," an emailed statement from a spokesperson said. "We take the concerns raised by state attorneys general seriously." OpenAI has drawn criticism for ChatGPT allegedly offering encouraging words to users thinking of killing themselves or engaging criminal acts. It also has come under scrutiny for how its uses health data and other personal information of its customers. On Thursday, the company was sued by a Canadian blaming the chatbot for her daughter's decision to hang herself. Earlier in June, the Florida attorney general sued the company after two separate shootings where alleged gunmen were reported to have asked ChatGPT questions while planning their crimes. OpenAI said in a statement that its models repeatedly encouraged the individuals to seek real-world support, including from mental health professionals. The company also said it has cooperated with law enforcement in both shooting cases. The new probe comes just a few days after it filed documents with U.S. security regulators for a highly anticipated initial public offering of stock. Artificial intelligence rival SpaceX celebrated its own IPO on Friday. The rocket maker founded by Elon Musk also runs an AI business responsible for a rival chatbot called Grok. How governments should respond to the potential for good and possible dangerous of AI is becoming a big political issue. Regulators Europe opened investigations into Musk's Grok over antisemitic content and sexualized material, include deepfake nudes. And another chatbot company preparing an IPO, Anthropic, was directed by the Trump administration Friday to shut down two of its online models to users abroad for national security reasons. The OpenAI subpoena was earlier reported by The Wall Street Journal. The Associated Press sent emails to a dozen state attorneys general Saturday asking for details of the probe but has not received any responses. In its statement, OpenAI highlighted measures it has taken to keep children using its chatbot safe. "Today's ChatGPT includes a more protective experience for minors and people experiencing difficult situations, with safeguards that direct them to real-world resources and trusted human contacts," the statement read in part. "We believe kids should be treated like kids, which is why we built age prediction, released parental tools to guide their children's use of AI, and disallowed advertising that targets kids."

OpenAI Is Now Facing Multiple Legal Investigations -- Here's What State Attorneys General Are Demanding to See

A massive legal fight is officially underway. Late last week, OpenAI disclosed that it is facing an investigation from multiple state attorneys general centered around its practices. The artificial intelligence startup was subpoenaed on Friday. According to The Wall Street Journal, government officials sought documents tied to a variety of the company's practices, including advertising, user engagement and retention, handling of consumer data and health data, activities related to minors and seniors, deep learning models, model sycophancy, and company policies. In a statement to The New York Times, OpenAI said: "We take the concerns raised by state attorneys general seriously and intend to engage constructively with their offices." The company added that it is actively adding safeguards, such as parental controls within its newer models of ChatGPT. The outlet also reported that New York and Colorado were two of the states involved in the investigation. "None of this changes what families have gone through, but we are committed to learning, improving, and getting this right," the company said.

OpenAI Hit With Multistate Probe Into Possible User Harm as Its IPO Looms

NEW YORK (AP) -- OpenAI received a subpoena from several states as part of a probe into the safety of users of its chatbot as it prepares to offer stock to the public for the first time. The company behind the popular chatbot, ChatGPT, said it will respond to the inquiry "constructively" and that it already has in place measures to protect its customers. "AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way," an emailed statement from a spokesperson said. "We take the concerns raised by state attorneys general seriously." OpenAI has drawn criticism for ChatGPT allegedly offering encouraging words to users thinking of killing themselves or engaging criminal acts. It also has come under scrutiny for how its uses health data and other personal information of its customers. On Thursday, the company was sued by a Canadian blaming the chatbot for her daughter's decision to hang herself. Earlier in June, the Florida attorney general sued the company after two separate shootings where alleged gunmen were reported to have asked ChatGPT questions while planning their crimes. OpenAI said in a statement that its models repeatedly encouraged the individuals to seek real-world support, including from mental health professionals. The company also said it has cooperated with law enforcement in both shooting cases. The new probe comes just a few day after it filed documents with U.S. security regulators for a highly anticipated initial public offering of stock. Artificial intelligence rival SpaceX celebrated its own IPO on Friday. The rocket maker founded by Elon Musk also runs an AI business responsible for a rival chatbot called Grok. How governments should respond to the potential for good and possible dangerous of AI is becoming a big political issue. Regulators Europe opened investigations into Musk's Grok over antisemitic content and sexualized material, include deepfake nudes. And another chatbot company preparing an IPO, Anthropic, was directed by the Trump administration Friday to shut down two of its online models to users abroad for national security reasons. The OpenAI subpoena was earlier reported by The Wall Street Journal. The Associated Press sent emails to a dozen state attorneys general Saturday asking for details of the probe but has not received any responses. In its statement, OpenAI highlighted measures it has taken to keep children using its chatbot safe. "Today's ChatGPT includes a more protective experience for minors and people experiencing difficult situations, with safeguards that direct them to real-world resources and trusted human contacts," the statement read in part. "We believe kids should be treated like kids, which is why we built age prediction, released parental tools to guide their children's use of AI, and disallowed advertising that targets kids."

OpenAI under investigation by group of state attorneys general

A group of US state attorneys general has started a wide-ranging probe into OpenAI. The ChatGPT maker received a subpoena seeking documents on its operations and user impact. This investigation includes data handling, minors, seniors, and internal policies. OpenAI faces increasing legal scrutiny as it prepares for an IPO. The company stated it takes concerns seriously and will engage constructively. A coalition of US state attorneys general has opened a sweeping investigation into OpenAI, a source familiar with the matter said on Friday. The ChatGPT maker was served on Friday with a subpoena seeking documents related to a wide range of ⁠its activities ⁠and the impact on users, including advertising, user engagement and retention, and the handling of consumer and health data, the source said. The subpoena, sent by New York's attorney general, also seeks information on activities related to minors and seniors, deep learning models and internal company policies, the source added. The probe represents the latest legal challenge for IPO-bound OpenAI, ⁠which is being sued by Florida for allegedly misrepresenting the safety of its ChatGPT platform. The source declined to be identified ⁠while discussing the investigation, which has not been publicly announced. An OpenAI spokesperson said: "AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way. We take the concerns raised by state attorneys general seriously and intend to engage constructively with their offices." The Wall Street Journal first reported the probe on Friday. The Florida lawsuit, the first by a US state, claims the platform has harmed children by providing information to school shooters, offering guidance on ⁠self-harm and addicting young users. A Canadian mother also sued OpenAI and Chief Executive Sam Altman in US court on Thursday, alleging ChatGPT encouraged her daughter to kill herself. OpenAI said on Monday it had confidentially filed for a US IPO that a source said could come as early as September and value the company at up to $1 trillion.

OpenAI Reportedly Faces Legal And Regulatory Storm As States Probe AI Safety and Consumer Protections Ahe

OpenAI is reportedly facing a multi-state investigation as attorneys general examine the company's data practices, safety measures and the potential impact of its artificial intelligence products on consumers ahead of its anticipated initial public offering. State Attorneys General Seek Information On OpenAI Operations According to a Wall Street Journal report citing people familiar with the matter, a coalition of state attorneys general has launched an investigation into OpenAI and served the company with a subpoena on Friday. The subpoena, reportedly issued by New York Attorney General Letitia James' office, seeks documents related to a broad range of topics, including advertising practices, user engagement and retention strategies, consumer and health data handling, activities involving minors and seniors, deep-learning models, AI sycophancy and internal company policies. AI sycophancy refers to situations in which chatbots excessively agree with or reinforce users' views rather than providing balanced responses. In a statement to the Journal, an OpenAI spokesperson said the company takes concerns raised by state attorneys general seriously and intends to engage constructively with their offices. OpenAI did not immediately respond to Benzinga's request for comments. OpenAI Faces Growing Regulatory And Legal Pressure The reported investigation comes shortly after OpenAI confidentially filed paperwork with the Securities and Exchange Commission for a potential IPO. The company is also facing legal scrutiny elsewhere. Earlier this month, Florida became the first state to sue OpenAI and CEO Sam Altman, alleging they knowingly released an unsafe product despite warnings about potential risks. In April, Florida Attorney General James Uthmeier opened a criminal investigation into OpenAI over ChatGPT's alleged role in assisting a suspect involved in a mass shooting at Florida State University. Authorities claim the suspect used the chatbot as a confidant while planning the attack. AI Industry Under Broader State Scrutiny OpenAI is not alone in attracting attention from state regulators. California Attorney General Rob Bonta also announced an investigation earlier this year into sexually explicit images allegedly generated using xAI's Grok chatbot. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

States Move Ahead with AI Safeguards for Minors as Federal Action Remains Uncertain | PYMNTS.com

The state-level activity comes amid growing concern about the role AI systems may play in self-harm, emotional manipulation and exposure to inappropriate content, according to Tech Policy Press. Those concerns have intensified following a series of lawsuits alleging that interactions with AI chatbots contributed to the deaths of minors and young adults. Most recently, Florida became the first state to sue OpenAI, alleging in part that a gunman who carried out a deadly shooting at Florida State University sought advice from ChatGPT before the attack. The debate is unfolding as AI adoption among young people accelerates. According to data from a Common Sense Media survey conducted last year, 72% of teenagers have used AI companions, while one-third report using chatbots for social interaction or emotional support. Families have filed lawsuits against several AI companies over alleged links between chatbot interactions and suicides, including a widely publicized case involving a 14-year-old who developed a relationship with a Character.ai chatbot before taking his own life. Congress has responded with several legislative proposals, but none have yet become law. The most prominent effort is the bipartisan Generative AI and Responsible Development (GUARD) Act, introduced by Senators Josh Hawley (R-MO) and Richard Blumenthal (D-CT). The measure was unanimously approved by the Senate Judiciary Committee in April and is awaiting consideration by the full Senate. A companion measure has also been introduced in the House. The GUARD Act would impose several requirements on AI chatbot providers, including age-verification mechanisms, mandatory disclosure that users are interacting with a non-human system, restrictions on AI companions designed to simulate relationships with minors, and criminal penalties for making sexually explicit chatbot content available to children. Other federal proposals are pursuing narrower approaches. The CHATBOT Act would require parental controls for children's AI use, while the Youth AI Privacy Act would prohibit companies from using minors' personal information to train AI models. The KIDS Act package would impose additional restrictions, including prohibiting chatbots from presenting themselves as licensed professionals. In the absence of federal action, however, states have moved aggressively. According to data from the National Conference of State Legislatures' Artificial Intelligence Legislation Database, lawmakers in 49 states and the District of Columbia have introduced 464 bills since 2025 addressing chatbot safeguards and AI use in areas such as healthcare. More than half of the states have enacted at least one AI-related law. California emerged as an early leader when Governor Gavin Newsom signed SB 243, which took effect on January 1. The law requires chatbot providers to disclose that users are interacting with AI, detect signs of harmful behavior such as suicidal ideation and direct users to appropriate resources, and filter sexually explicit content for minors. Washington State enacted similar protections through HB 2225. The law requires AI disclosures and prohibits chatbot systems from generating sexually explicit or otherwise harmful content for minors. "It's a high-risk ball game, and lives are being lost, so we have to act," State Representative Lisa Callan, the law's sponsor, said. "It's better if we can do it at a national level so we have consistency across the nation, but we can't wait." The growing state activity reflects a familiar dynamic in technology regulation, where states often serve as policy laboratories while federal lawmakers struggle to reach consensus. The Trump administration has generally favored a pro-innovation approach to AI regulation, although a White House framework released in March endorsed parental controls and protections against sexually explicit and self-harm content for minors. For now, though, the absence of a comprehensive federal framework is leaving states to establish the first generation of AI safety standards for minors. Whether Congress ultimately adopts the GUARD Act or another federal approach may determine whether those emerging state rules become a national baseline or remain part of an increasingly fragmented regulatory landscape.

Multiple US States Subpoena OpenAI over ChatGPT Safety Issues Amidst IPO Push

The legal queries against OpenAI isn't new as 42 of the 50 US states had gotten together to query AI startups about user safety as far back as last December If Anthropic faced unprecedented administrative interference from the White House regarding its "smartest model yet", arch rival OpenAI is facing the heat from a coalition of state law officers in the United States over user safety issues around ChatGPT. That both companies are facing administrative heat close to a possible IPO is anything but a coincidence. The sweeping subpoena issued by a group of state attorneys general over the safety concerns that appears to be a fresh regulatory challenge. Coming at this juncture, the demand made by the law officers for a large set of documents around how ChatGPT protects users might seriously damage OpenAI's reputation as it prepares for a public listing. Per reports in the Wall Street Journal, OpenAI received the subpoena on Friday from a group of states with New York's attorney general reportedly leading the charge. Documents sought include details around its activities, their impact on users, including advertising, user engagement and retention, handling customer data and health data etc. OpenAI responded with a brief statement which said, "AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way. We take the concerns raised by state attorneys general seriously and intend to engage constructively with their offices." Readers would recall that earlier in June, Florida became the first state to file a lawsuit against OpenAI and its CEO Sam Altman claiming that the company had knowingly released an unsafe product and ignored warnings that it could harm users. While the timing might suggest a pre-planned move by the states, the fact remains that 42 of the 50 American states had got their attorneys general to scrutinise OpenAI and its rivals operating AI chatbots. Last December, these state law officers led by Pennsylvania's Dave Sunday had written to OpenAI, Anthropic, Meta, Google and xAI demanding safeguards to protect users from harmful interactions. In fact, the letter had issued a clear warning to these companies that "developers may be held accountable for the outputs of their Gen AI products" for "encouraging an individual to commit a criminal act." While OpenAI has reiterated its intention to engage with the law officers and do what best it can to assuage fears, the fact remains that much of these legal wrangles are being observed keenly by states of the European Union across the pond. The Trump administration's plan to lock all foreigners out of Anthropic's top AI models hasn't gone down well with the EU, with Brussels calling it out as a discriminatory approach. "We are seeing a new generation of highly capable AI models reach the market. These models offer significant benefits, including for cyber-defence, but they also raise serious cybersecurity concerns that need to be addressed," European Commission spokesperson for tech sovereignty Thomas Regnier said over the weekend. He described it as a "shared challenge" and not one confined to a single jurisdiction or company. "We believe that contingency measures taken in this light should not be discriminatory against partners," Regnier noted adding that the EU was monitoring the situation and looking at its practical consequences on European users. Incidentally, Anthropic CEO Dario Amodei is with G7 leaders and chief executives of other leading AI companies at a working lunch Anthropic CEO Dario Amodei will join G7 leaders and the chief executives of other leading AI companies for a working lunch today in France. Later in the day, Prime Minister Narendra Modi and President Donald Trump are scheduled to discuss trade, AI and global security.

State AGs Probe OpenAI Over Safety, Privacy, and Child Risks

Earlier, Attorney General Rob Bonta and Attorney General Kathy Jennings met with OpenAI and sent a letter over concerns about how OpenAI products interact with children. That meeting came about a week after Bonta and 44 other attorneys general sent a separate letter to 12 major AI companies. Florida became the first state to sue OpenAI directly on June 1. Attorney General James Uthmeier sued OpenAI and CEO personally. The complaint alleges that ChatGPT harmed children by giving information to school shooters, offering self-harm guidance, and making young users addicted without enough parental controls. Uthmeier said the company ignored safety warnings and exposed children to risk. OpenAI said it has put in place industry-leading protections and policies. The company pointed to age prediction tools and a more protective experience for minors. Florida's case grew out of a criminal investigation tied to a 2025 mass shooting at Florida State University. Prosecutors reviewed chat logs between the accused gunman and ChatGPT. Also Read: The state action comes as federal legislation moves slowly. On April 30, the Senate Judiciary Committee advanced the GUARD Act. The bipartisan bill would ban AI companions that simulate relationships with minors and would impose criminal penalties for chatbots that produce sexually explicit content for children. Meanwhile, state keep moving. Since 2025, lawmakers in 49 states and the District of Columbia have introduced 464 bills on chatbot safeguards and AI in health care, according to the National Conference of State Legislatures. The pressure now reaches beyond regulation. Investors watching OpenAI's expected public offering will likely track whether the investigations bring new legal risks before a possible September listing window.

OpenAI subpoenaed in multistate attorney general probe: WSJ By Investing.com

Investing.com -- OpenAI is being investigated by a coalition of state attorneys general and was served Friday with a subpoena seeking documents related to a broad range of its business activities and impact on users, according to an exclusive Wall Street Journal report. The subpoena, sent by New York Attorney General Letitia James' office, seeks information related to advertising, user engagement and retention, handling of consumer and health data, activities involving minors and seniors, deep learning models, model behavior, and company policies, the report said. In a statement, an OpenAI spokesperson said the company takes concerns raised by state attorneys general seriously and intends to engage constructively with their offices. "AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way," the spokesperson said. The investigation comes after OpenAI confidentially filed paperwork with the U.S. Securities and Exchange Commission this month for a potential initial public offering. The report also noted that Florida, earlier this month, became the first state to sue OpenAI and Chief Executive Sam Altman. The lawsuit alleges the company knowingly released an unsafe product and ignored warnings that it could harm users. Florida Attorney General James Uthmeier also opened a criminal investigation into OpenAI in April over the alleged role ChatGPT played in a mass shooting at Florida State University last year. State attorneys general have also increased scrutiny of other AI developers. In December, a coalition of 42 attorneys general sent a letter to OpenAI, Meta, Anthropic, Alphabet's Google, and xAI, urging them to implement safeguards protecting vulnerable users from harmful chatbot interactions. In January, California Attorney General Rob Bonta announced an investigation into the large-scale creation of sexual images of women and children using xAI's Grok chatbot.

OpenAI faces investigation over ChatGPT's impact on children and vulnerable users

An OpenAI spokesperson said the company is taking the concerns seriously. OpenAI is facing a new investigation over concerns about how ChatGPT may affect users. A group of US state attorneys general has launched an investigation against the AI company. According to Business Insider, New York Attorney General Letitia James served OpenAI with a subpoena on Friday. The request seeks documents related to user engagement and retention, how the company handles health and consumer data, its AI models, and activities involving younger and older users. Responding to the investigation, an OpenAI spokesperson said the company is taking the concerns seriously. "Today's ChatGPT includes a more protective experience for minors and people experiencing difficult situations, with safeguards that direct them to real-world resources and trusted human contacts," the spokesperson said. "None of this changes what families have gone through, but we are committed to learning, improving, and getting this right," they added. Also read: Anthropic wants Claude Fable 5 and Mythos 5 back online, sends execs to US for talks The investigation comes as OpenAI faces growing legal cases over the impact of ChatGPT on users. Several lawsuits have been filed against the company, including claims that interactions with ChatGPT have influenced users who later died by suicide. Following concerns raised earlier this year, OpenAI said ChatGPT should not be used as a replacement for professional help. The company explained that ChatGPT "is not a substitute for medical or mental health care, and we have continued to strengthen how it responds in sensitive and acute situations with input from mental health experts." OpenAI is also facing legal action related to a fatal shooting at Florida State University in April. The family of one of the victims alleges that ChatGPT's safety systems failed to recognise warning signs in the shooter's conversations with the chatbot. Also read: OpenAI sued after ChatGPT allegedly urged woman toward suicide, complaint claims Florida Attorney General James Uthmeier has also filed a lawsuit against OpenAI, claiming that ChatGPT has "aided and abetted deadly rampages" and "encouraged vulnerable people into suicide." The complaint further alleges that some users have become addicted to ChatGPT, which it describes as a tool that "feigns human compassion to collect their data with no parental oversight." The coordinated investigation is similar to previous actions taken against social media companies, including TikTok, over concerns about their impact on young users and mental health.