source: techcrunch ai: openai faces investigation from state attorneys general
level: business
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. the subpoena seeks documents on advertising, user engagement and retention, model sycophancy, handling of consumer and health data, and treatment of minors and seniors. openai says it is cooperating and takes the concerns seriously.
openai recently defeated co-founder elon musk in a trial over its founding agreement, but musk plans to appeal. the company still faces lawsuits on copyright infringement and chatgpt’s alleged role in a suicide. earlier this month, florida’s attorney general sued openai and ceo sam altman, claiming they ignored safety warnings and put children at risk. altman also apologized for not alerting police after flagging a suspected shooter’s chatgpt account before a mass shooting in canada.
the investigation adds to regulatory pressure as openai has confidentially filed to go public. the company says chatgpt now includes more protective features for minors and people in difficult situations, directing them to real-world resources. openai declined to name the states involved or share more details on the requested information. the probe covers a wide range of consumer protection issues, signaling growing scrutiny of ai companies’ practices.
why it matters: the investigation highlights legal risks for ai companies around data privacy, user safety, and transparency, which could shape industry regulations and affect public trust.
source: techcrunch ai: openai faces investigation from state attorneys general