42 State Attorneys General Launch OpenAI Investigation Days After $852B IPO Filing

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 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.

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.

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.

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.