OpenAI faces a new investigation from a coalition of state attorneys general who want detailed information about how the AI company operates and affects its users. The company received a subpoena on Friday seeking extensive documentation about its business practices and user protections.
The investigation comes as AI companies face increasing legal and regulatory pressure over safety concerns, particularly regarding vulnerable users. This latest probe adds to mounting challenges for OpenAI as it prepares for a potential public offering.
The attorneys general are requesting documents covering a wide range of OpenAI’s operations, according to the Wall Street Journal, which viewed the subpoena sent by New York’s attorney general. The coalition wants information about:
- Advertising practices and user engagement strategies
- Data handling procedures, including health information
- Policies for protecting minor and senior users
- Deep learning model development and training
- AI model “sycophancy” – how chatbots might tell users what they want to hear
“AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way,” an OpenAI spokesperson told the Journal. “We take the concerns raised by state attorneys general seriously and intend to engage constructively with their offices.”
The investigation reflects growing concern among state officials about AI safety. Last year, 44 state attorneys general sent a letter to major tech companies including OpenAI, Meta, Google, and Microsoft, demanding better protections for children using AI chatbots. The officials worried about inappropriate or harmful interactions between minors and AI systems.
OpenAI has also faced criminal scrutiny. Florida Attorney General James Ulthmeier opened a criminal investigation into the company after reports that a suspect in a 2025 mass shooting at Florida State University had used ChatGPT. The connection between AI use and violent incidents has become a key concern for law enforcement.
The company is also defending against wrongful death lawsuits. Parents have sued OpenAI claiming the company failed to protect users from self-harm. One recent lawsuit alleges that a teenager discussed suicidal thoughts with ChatGPT for months before taking her own life, but the company never alerted family members or authorities.
These legal challenges come at a critical time for OpenAI. The company recently filed paperwork with the Securities and Exchange Commission for a potential initial public offering, though it hasn’t set timing or pricing details. Ongoing investigations and lawsuits could complicate those plans and affect investor confidence.
The state investigation also highlights broader questions about AI regulation. While federal agencies like the FTC have started examining AI companies, state attorneys general are taking their own enforcement actions. This creates a complex legal environment where AI companies must navigate multiple jurisdictions with potentially different standards and requirements.
