Jun 16, 9:33 AM
OpenAI Faces Sweeping State Subpoena Over ChatGPT Safety – Just as IPO Filing Lands
A coalition of attorneys general demands documents on advertising, consumer data, and protections for minors. The inquiry comes days after OpenAI filed confidential paperwork for a potential $1 trillion listing.
OpenAI is facing a fresh regulatory challenge just days after filing confidential paperwork for an initial public offering. A coalition of US state attorneys general has demanded a wide range of documents about how ChatGPT protects the people who use it – a move that threatens to complicate a listing that some analysts expect will value the company at roughly $1 trillion.
According to The Wall Street Journal, which first reported the matter, OpenAI received the subpoena on Friday from a group of states led by New York's attorney general. Officials are requesting material covering the company's advertising practices, how it keeps people using its service, its handling of consumer and health data, and its policies toward minors and older adults.
OpenAI said it would engage with the offices behind the request and stressed that protections are already built into its product. A spokesperson stated that the company takes the concerns raised by the attorneys general "seriously" and works to bring the benefits of the technology to people responsibly. However, the firm has not confirmed which other US states are taking part.
The subpoena adds to a growing list of legal headaches. Last Thursday, a Canadian woman sued OpenAI, blaming ChatGPT for her daughter's suicide. Earlier in June, Florida Attorney General James Uthmeier filed suit against the company and CEO Sam Altman after two shootings in which the alleged attackers reportedly used the chatbot to plan their crimes. OpenAI responded that its models repeatedly urged the individuals to seek help from mental health professionals and that it cooperated with the police in both cases.
These are not the first courtroom tests of the year. In May, a federal jury in Oakland, California took less than two hours to reject Elon Musk's lawsuit accusing Altman of abandoning the firm's nonprofit roots, finding he had filed too late. Musk, who called the ruling a "calendar technicality," said he would appeal.
For now, OpenAI is juggling an IPO, a subpoena, multiple lawsuits, and the attention of state attorneys general from across the country. The company insists its products are safe. Regulators are not so sure. And investors are watching closely. The next few months will determine not just the company's valuation, but its ability to operate without constant legal interference.
Written by Freya Stensrud freya.stensrud@alpineweekly.com
