State attorneys general have opened a formal investigation into OpenAI and CEO Sam Altman, according to TechCrunch, and the company received a subpoena from New York's attorney general on Friday.
The investigation covers OpenAI's advertising practices, how it handles consumer data, health information, and treatment of minors and seniors. Investigators are also examining "model sycophancy," user retention tactics, and platform engagement strategies.
A company spokesperson told the Wall Street Journal that OpenAI is "cooperating" and taking the concerns "seriously," saying they intend to "engage constructively" with state offices.
Days earlier, Florida Attorney General James Uthmeier sued OpenAI and Altman, claiming they "ignored internal and external safety warnings" and "allowed a dangerous product to reach millions of Floridians." The lawsuit alleges minors were put "at great risk."
Altman also apologized to Tumbler Ridge, a Canadian community, after a mass shooting incident. OpenAI had flagged and banned the suspected shooter's ChatGPT account but failed to alert law enforcement.
The company says it has introduced "more protective experiences for minors" with safeguards directing vulnerable users to real-world resources. Critics remain skeptical.
OpenAI faces additional lawsuits over copyright infringement and ChatGPT's alleged connection to suicide cases. It recently lost a high-profile trial against co-founder Elon Musk, though Musk says he will appeal.
This week, OpenAI filed confidentially to go public. Investors are monitoring the developments closely.
