Multiple U.S. state attorneys general have opened a joint inquiry into OpenAI while the company prepares for a potential public offering, according to The Wall Street Journal. The news outlet reports that OpenAI received a subpoena on Friday from the office of the New York State Attorney General, requesting extensive documentation.
Scope of the probe
According to the report, the investigation covers several areas, including:
- the company’s marketing practices;
- methods used to attract and retain users;
- the models’ so‑called "sycophancy" (excessive deference or overly ingratiating behavior);
- handling of consumer and health data;
- protections for minors and elderly or vulnerable adults.
OpenAI has not disclosed which states are participating in the investigation, nor has it detailed the specific documents or data the authorities have requested.
Company response
An OpenAI spokesperson told The Wall Street Journal and Bloomberg that the company is cooperating with authorities. The spokesperson emphasized that artificial intelligence is "a new and extremely powerful technology," and that OpenAI works daily to deliver its benefits safely and responsibly. They also highlighted that ChatGPT now offers enhanced protections for underage users and people in difficult life circumstances, and that the system includes safeguards that can direct users to real assistance or trusted human contacts when needed.
Related legal matters
The probe comes while OpenAI is involved in multiple legal proceedings. The company recently won a significant court ruling against one of its most prominent critics and co‑founders, Elon Musk, who had accused OpenAI of breaching commitments made at founding; the court ruled in OpenAI’s favor, and Musk’s lead attorney has signaled an intent to appeal.
OpenAI is also facing numerous other suits, including copyright infringement claims and lawsuits alleging ChatGPT played an indirect role in certain tragic incidents. Earlier this month, James Uthmeier, the Attorney General of Florida, filed a lawsuit against OpenAI and its CEO Sam Altman, alleging that the company and Altman ignored safety warnings, exposed children to significant risk, and delivered a dangerous product to millions of Florida users.
Sam Altman also faced criticism after publicly apologizing to the community of Tumbler Ridge, Canada, following a mass shooting; Altman acknowledged that OpenAI did not notify law enforcement after the company’s systems flagged and suspended the alleged perpetrator’s ChatGPT account.
Why it matters
The timing of the investigation is sensitive: OpenAI announced this week that it has confidentially submitted documents needed for an IPO. A multi‑state inquiry and ongoing litigation could affect the company’s regulatory standing, operational focus, and market perception as it moves toward a possible public listing.
Next steps
TechCrunch reached out to OpenAI and the New York State Attorney General’s office for confirmation. Authorities may provide further information about participating states, the documents requested, and the probe’s progress as the investigation continues.
