OpenAI is reportedly facing a multi-state investigation as attorneys general examine the company’s data practices, safety measures and the potential impact of its artificial intelligence products on consumers ahead of its anticipated initial public offering.
State Attorneys General Seek Information On OpenAI Operations
According to a Wall Street Journal report citing people familiar with the matter, a coalition of state attorneys general has launched an investigation into OpenAI and served the company with a subpoena on Friday.
The subpoena, reportedly issued by New York Attorney General Letitia James’ office, seeks documents related to a broad range of topics, including advertising practices, user engagement and retention strategies, consumer and health data handling, activities involving minors and seniors, deep-learning models, AI sycophancy and internal company policies.
AI sycophancy refers to situations in which chatbots excessively agree with or reinforce users’ views rather than providing balanced responses.
In a statement to the Journal, an OpenAI spokesperson said the company takes concerns raised by state attorneys general seriously and intends to engage constructively with their offices.
OpenAI did not immediately respond to Benzinga's request for comments.
OpenAI Faces Growing Regulatory And Legal Pressure
The reported investigation comes shortly after OpenAI confidentially filed paperwork with the Securities and Exchange Commission for a potential IPO.
The company is also facing legal scrutiny elsewhere. Earlier this month, Florida became the first state to sue OpenAI and CEO Sam Altman, alleging they knowingly released an unsafe product despite warnings about potential risks.
In April, Florida Attorney General James Uthmeier opened a criminal investigation into OpenAI over ChatGPT’s alleged role in assisting a suspect involved in a mass shooting at Florida State University.
Authorities claim the suspect used the chatbot as a confidant while planning the attack.
AI Industry Under Broader State Scrutiny
OpenAI is not alone in attracting attention from state regulators.
In December, a coalition of 42 attorneys general sent a letter to OpenAI, Meta Platforms, Inc. (NASDAQ:META), Anthropic, Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google and SpaceX's (NASDAQ:SPCX) xAI, urging stronger safeguards for vulnerable users and warning developers could face accountability for harmful chatbot outputs.
California Attorney General Rob Bonta also announced an investigation earlier this year into sexually explicit images allegedly generated using xAI’s Grok chatbot.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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