OpenAI faces investigation from state attorneys general

A coalition of state attorneys general has initiated an investigation into OpenAI's operations, with a subpoena issued by New York’s attorney general on Friday. This subpoena demands documents covering a wide array of issues including advertising practices, user engagement metrics, treatment of consumer data, and the handling of vulnerable populations such as minors and seniors. TechCrunch has reached out to both OpenAI and the New York attorney general's office for confirmation of these developments. In a statement to The Wall Street Journal, an OpenAI spokesperson indicated that the company is fully cooperating with the inquiry. "AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way," the spokesperson stated. They emphasized that OpenAI takes the concerns of the state attorneys general seriously and is committed to constructive engagement with their offices. Bloomberg reports that the spokesperson highlighted recent updates to ChatGPT, which now includes enhanced protections for minors and individuals in distress, directing them to reputable resources and human contacts for support. While OpenAI did not disclose which specific states are involved in the investigation, the scrutiny follows a series of legal challenges, including a high-profile lawsuit from co-founder Elon Musk. Musk's legal team claims that OpenAI breached its founding agreement, a decision that Musk intends to appeal. Additionally, the company is facing numerous lawsuits related to various allegations, including copyright infringement and the alleged involvement of ChatGPT in tragic incidents, such as suicides. Recently, Florida Attorney General James Uthmeier filed a lawsuit against OpenAI and its CEO, Sam Altman, alleging that they neglected critical safety warnings and thus endangered children by allowing a hazardous product to proliferate among Floridians. Altman has also expressed regret to the community of Tumbler Ridge, Canada, after a mass shooting incident, acknowledging that OpenAI failed to alert authorities when it identified and banned the suspected shooter's ChatGPT account. In light of these challenges, OpenAI has reportedly filed confidential documents to prepare for a public offering.