OpenAI has been hit with a sweeping investigation by a coalition of U.S. state attorneys general, according to a source familiar with the matter. The surprise probe marks an intense escalation of legal scrutiny for the tech giant at a critical moment in its history.
The ChatGPT maker was served with a comprehensive subpoena demanding internal documents regarding a wide range of its activities. Investigators are particularly focused on the platform's impact on vulnerable users, advertising tactics, and data privacy, News.Az reports, citing Reuters.
The multi-state probe, spearheaded by New York's attorney general, is seeking internal company policies and deep learning model data on the following fronts:
User engagement and retention strategies
The handling of consumer and sensitive health data
Safety policies regarding minors and senior citizens
The timing of the investigation couldn't be worse for the AI powerhouse. Just days ago, OpenAI confidentially filed for a U.S. Initial Public Offering (IPO) that sources say could happen as early as September, potentially valuing the company at a staggering $1 trillion.
This undisclosed state-level probe adds to a fast-growing mountain of severe legal challenges for CEO Sam Altman and OpenAI.
The company is already dealing with a major lawsuit from the state of Florida—the first U.S. state to sue the tech firm. Florida claims that ChatGPT has actively harmed children by providing dangerous information to school shooters, offering methods for self-harm, and keeping young users addicted to the platform.
Further compounding the crisis, a Canadian mother filed a lawsuit in U.S. court against OpenAI and Altman, alleging that ChatGPT encouraged her daughter to commit suicide.
Responding to the wave of scrutiny, an OpenAI spokesperson stated:
"AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way. We take the concerns raised by state attorneys general seriously and intend to engage constructively with their offices."
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