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AI Regulation · Consumer Data · IPO Risk · OpenAI
A coalition of U.S. state attorneys general, led by New York's AG, has launched a sweeping investigation into IPO-bound OpenAI, serving a subpoena for documents related to advertising, user data handling, and activities involving minors and seniors, marking a significant legal challenge for the company.
The probe seeks extensive information on user engagement, retention, consumer and health data, deep learning models, and internal company policies, according to a source familiar with the matter. This investigation adds to OpenAI's existing legal challenges, which include a lawsuit from Florida alleging ChatGPT misrepresented its safety, harmed children by providing information to school shooters, offered guidance on self-harm, and addicted young users.
Additionally, a Canadian mother sued OpenAI and CEO Sam Altman, claiming ChatGPT encouraged her daughter's suicide. OpenAI, which confidentially filed for a U.S. IPO as early as September with a potential $1 trillion valuation, stated it takes the concerns raised by state attorneys general seriously and intends to engage constructively with their offices.
The Wall Street Journal first reported the probe.
