OpenAI faces investigation from state attorneys general

Overview

A coalition of state attorneys general has opened an investigation into OpenAI, and the company was served with a subpoena from New York's attorney general on Friday, according to The Wall Street Journal. The subpoena sought documents on a broad range of topics, including advertising, user engagement and retention, model sycophancy, handling of consumer and health data, and treatment of minors and seniors. OpenAI said it takes the concerns seriously and intends to engage constructively, while the investigation adds to a stack of legal and regulatory pressure on the company.

Key Takeaways

A coalition of state attorneys general has opened an investigation into OpenAI.
OpenAI was served with a subpoena from New York's attorney general on Friday, per The Wall Street Journal.
The subpoena sought documents on advertising, user engagement and retention, model sycophancy, consumer and health data handling, and treatment of minors and seniors.
OpenAI said it takes the concerns seriously and intends to engage constructively with the attorneys general.
OpenAI recently defeated co-founder Elon Musk in a trial, though Musk's lead attorney said he will appeal.
OpenAI announced this week that it filed confidentially to go public.

Stats & Key Facts

#OpenAI was served with the New York subpoena on a Friday.
#Florida Attorney General James Uthmeier sued OpenAI and CEO Sam Altman earlier in the month.

What the investigation covers

The subpoena reaches across many areas of OpenAI's business.

›A coalition of state attorneys general opened the investigation, with a subpoena from New York's attorney general served on Friday.
›Topics include the company's advertising, user engagement and retention, and model sycophancy.
›They also include handling of consumer data and health data, and treatment of minors and seniors.

The breadth of the requested documents signals wide-ranging scrutiny rather than a single issue. The information was reported by The Wall Street Journal, and TechCrunch said it had reached out to the New York attorney general's office for confirmation.

OpenAI's response

›An OpenAI spokesperson said the company works every day to safely bring AI's benefits to people in a responsible way.
›The spokesperson said OpenAI takes the concerns seriously and intends to engage constructively with the attorneys general.
›The company did not specify which states are involved or what information was requested.

OpenAI also described protections for younger and vulnerable users: "Today's ChatGPT includes a more protective experience for minors and people experiencing difficult situations, with safeguards that direct them to real-world resources and trusted human contacts." The spokesperson added that the company built age prediction, released parental tools, and disallowed advertising that targets kids.

Other legal pressure on OpenAI

The investigation lands amid several ongoing disputes.

›OpenAI recently defeated co-founder Elon Musk in a high-profile trial after Musk accused it of violating its founding agreement.
›Musk's lead attorney said he will appeal the decision.
›OpenAI still faces lawsuits over issues from alleged copyright infringement to ChatGPT's alleged role in user suicides.

Earlier this month, Florida Attorney General James Uthmeier sued OpenAI and CEO Sam Altman, claiming they ignored internal and external safety warnings, put children at great risk, and allowed a dangerous product to reach millions of Floridians.

Safety incidents in the background

›Altman recently apologized to the community of Tumbler Ridge, Canada after a mass shooting.
›He acknowledged that OpenAI failed to alert law enforcement after the company flagged and banned the suspected shooter's ChatGPT account.
›Concerns about treatment of minors and vulnerable users run through both the investigation and the lawsuits.

These incidents underscore the safety questions at the center of the regulatory attention. They form part of the context in which the state attorneys general are seeking documents.

The IPO timing

›OpenAI announced this week that it filed confidentially to go public.
›The investigation arrives as the company moves toward public markets.
›The legal and regulatory scrutiny coincides with this corporate milestone.

The confidential filing signals OpenAI's intent to go public even as it faces investigations and lawsuits. The article presents the two developments side by side without drawing a causal link.

Frequently Asked Questions

Who is investigating OpenAI?

A coalition of state attorneys general. OpenAI was served with a subpoena from New York's attorney general on Friday, according to The Wall Street Journal.

What does the subpoena ask about?

It sought documents on advertising, user engagement and retention, model sycophancy, handling of consumer and health data, and treatment of minors and seniors.

How did OpenAI respond?

OpenAI said it takes the concerns seriously and intends to engage constructively, and pointed to protections for minors such as age prediction, parental tools, and a ban on advertising that targets kids.

What other legal issues does OpenAI face?

It recently defeated Elon Musk in a trial that Musk plans to appeal, faces lawsuits over alleged copyright infringement and ChatGPT's alleged role in user suicides, and was sued by Florida's attorney general and Sam Altman over child safety claims.

Is OpenAI going public?

Yes. The company announced this week that it has filed confidentially to go public.

The multistate investigation, anchored by a broad New York subpoena, adds regulatory pressure on OpenAI just as the company moves toward a public offering and fights several lawsuits.