State Attorneys General Launch Inquiry Into OpenAI Practices

OpenAI is facing a new regulatory challenge after a coalition of U.S. state attorneys general launched an investigation into the artificial intelligence company.

According to The Wall Street Journal, OpenAI received a subpoena from the New York Attorney General’s office on Friday. The request seeks documents covering a wide range of issues, including the company’s advertising practices, user engagement and retention strategies, model behaviour and sycophancy concerns, handling of consumer and health-related data, and protections for minors and older adults.

In a statement, an OpenAI spokesperson said the company takes the concerns raised by state officials seriously and intends to cooperate with the investigation.

“AI is a new and powerful technology, and we work every day to bring its benefits to people in a responsible way, safely,” the spokesperson said. “We take the concerns raised by state attorneys general seriously and intend to engage constructively with their offices.”

The company also highlighted several safeguards currently in place for younger users and individuals facing difficult situations. According to OpenAI, ChatGPT now includes additional protections that direct users toward trusted contacts and real-world support resources when appropriate.

“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 added. “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 did not disclose which states are participating in the investigation or provide further details regarding the specific information requested.

The inquiry comes shortly after OpenAI secured a legal victory against co-founder Elon Musk in a closely watched court case. Musk had accused the company of violating its original founding agreement, although his legal team has indicated that an appeal is planned.

At the same time, OpenAI continues to face multiple legal challenges, including lawsuits related to alleged copyright infringement and claims connected to ChatGPT’s alleged involvement in user suicides. Earlier this month, James Uthmeier filed a lawsuit against OpenAI and CEO Sam Altman, alleging that the company ignored safety concerns and exposed children to potential risks.

Altman also recently apologised to the community of Tumbler Ridge following a mass shooting incident, acknowledging that OpenAI failed to alert law enforcement after flagging and banning the suspected shooter’s ChatGPT account.

The latest investigation arrives just days after OpenAI announced that it had confidentially filed paperwork to become a publicly traded company.