OpenAI faces a multi-state regulatory inquiry just as it confidentially files for an initial public offering that could value the company near $1 trillion.
The subpoena, led by the New York Attorney General, arrived on Friday. Officials are demanding documentation covering advertising practices, user engagement tactics, and the handling of consumer health data, with specific focus on protections for minors and older adults.
A spokesperson stated OpenAI takes the concerns seriously, noting that safety protections are already integrated into its products. The company has not confirmed the full list of participating states.
The legal pressure is mounting rapidly. A Canadian woman recently sued the company, blaming ChatGPT for her daughter’s suicide. Earlier in June, Florida Attorney General James Uthmeier filed suit against OpenAI and CEO Sam Altman following two shootings where alleged attackers reportedly used the chatbot for planning. OpenAI maintains its models urged the individuals to seek mental health support and that it cooperated with law enforcement.
The regulatory landscape is tightening industry-wide. European regulators are investigating Elon Musk’s rival chatbot Grok over deepfake and antisemitic content, while Anthropic faces Trump administration export restrictions on national security grounds.