A coalition of state attorneys general has launched a formal investigation into OpenAI, marked by a subpoena issued by New York Attorney General Letitia James on Friday, as the company prepares for a potential initial public offering. The probe, reported by The Wall Street Journal, demands documents covering advertising practices, user engagement strategies, consumer and health data handling, activities involving minors and seniors, deep-learning models, internal policies, and the issue of model sycophancy—where chatbots overly agree with users.
OpenAI stated it takes the concerns seriously and will engage constructively. “AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way,” a spokesperson said, noting ChatGPT now has enhanced safeguards for minors. The company recently filed confidential IPO paperwork with the SEC, making the regulatory escalation particularly sensitive.
Florida Attorney General James Uthmeier earlier sued OpenAI and CEO Sam Altman, alleging reckless release of an unsafe product. A separate criminal investigation was opened in Florida over ChatGPT’s alleged link to a mass shooting at Florida State University. The multi-state action, along with a December letter from 42 AGs to AI firms urging stronger safeguards, highlights mounting state-level pressure on the industry. Legal experts say the outcome could set precedents for AI accountability, with potential knock-on effects for investor confidence in AI-related ventures, including crypto AI tokens like Worldcoin, co-founded by Altman.
