Attorneys General from Multiple U.S. States Launch Joint Investigation into OpenAI
Claire Weston
A coalition of U.S. state attorneys general has subpoenaed OpenAI for documents on minors' safety, user data, and model "sycophancy" — the largest joint state-level enforcement action against an AI company to date, landing just as OpenAI has confidentially filed for an IPO at an $852 billion valuation.
What does the subpoena cover?
The subpoena, issued by the New York Attorney General's office, demands documents on advertising practices, user engagement and retention mechanisms, consumer and health data handling, activities involving minors and the elderly, deep-learning models, model "sycophancy" — the tendency of AI to give dishonest answers to please users — and internal company policies.
This means → the probe is not targeting a single issue; it is a comprehensive audit of OpenAI's business model and technical risks.
It is the largest joint state-level enforcement action against OpenAI to date, according to the Wall Street Journal.
How did OpenAI respond?
An OpenAI spokesperson said the company "takes the attorneys general's concerns seriously" and intends to engage in constructive dialogue.
The spokesperson did not disclose which states are involved or the detailed scope of documents requested.
In plain terms = the company signaled cooperation but revealed nothing material — a standard legal-defense posture.
What signal did Florida's lawsuit send?
Florida Attorney General James Uthmeier earlier this month sued OpenAI and CEO Sam Altman separately, alleging the company released ChatGPT knowing it posed safety risks.
At a press conference, Uthmeier said he expected other states to take similar action.
This reflects that Florida's lawsuit was not an outlier but a prelude — the joint subpoena confirms exactly that reading.
What other lawsuits does OpenAI face?
Families of seven victims of the Tumbler Ridge shooting in Canada (February this year) have sued OpenAI, alleging the attacker used ChatGPT to plan the assault and the company failed to intervene.
Multiple wrongful-death lawsuits allege ChatGPT caused users to experience harmful hallucinations; some cases involve user suicides.
OpenAI's spokesperson said the current version of ChatGPT offers more protective experiences for minors and distressed users, including referrals to real-world resources and trusted human contacts.
Why is the timing so sensitive?
OpenAI confidentially filed for an IPO with the SEC this month. Its valuation reached $852 billion in a March funding round, and ChatGPT now has over one billion monthly active users.
This means → the joint enforcement action lands squarely in the IPO window — whether regulatory pressure can materially affect the listing timeline is the market's central variable.
Put simply = the company is trying to sell a growth story to public markets while state prosecutors pry open the hood — the two timelines have collided.
Content is for reference only, not financial advice.