State AGs investigate OpenAI over data, minors, and advertising

A coalition of state attorneys general has opened an investigation into OpenAI, with New York’s attorney general serving a subpoena on Friday, as reported by The Wall Street Journal. The subpoena seeks a broad range of documents covering advertising practices, user engagement and retention metrics, model sycophancy (where AI models excessively agree with users), consumer and health data handling, and specific treatment of minors and seniors. OpenAI spokesperson stated the company takes the concerns seriously and will engage constructively, highlighting that ChatGPT now includes protective experiences for minors and people in crisis, with age prediction, parental controls, and ad restrictions targeting kids. The company did not specify which states are involved beyond New York.

This investigation adds to OpenAI’s mounting legal challenges. The company recently defeated co-founder Elon Musk’s lawsuit (though an appeal is expected) but still faces litigation over copyright infringement and alleged roles in user suicides. Earlier this month, Florida AG James Uthmeier sued OpenAI and CEO Sam Altman, claiming dangerous product deployment and child endangerment. Altman also apologized to a Canadian community after failing to alert law enforcement about a flagged shooter account. Meanwhile, OpenAI has confidentially filed to go public, underscoring the tension between its regulatory risks and growth ambitions.