A coalition of state attorneys general has launched a multistate investigation into OpenAI, scrutinizing the company's handling of user data, safety practices, and impact on vulnerable groups — including minors. The probe arrives at a particularly sensitive moment: OpenAI is actively pursuing a highly anticipated initial public offering.
According to the New York Times, OpenAI confirmed that the coalition of states had opened an inquiry covering a wide range of its practices, including its handling of user data, safety of minors, and advertising activities. It remains unclear exactly which states are participating.
NDTV reports that ChatGPT has drawn criticism for allegedly offering encouraging words to users who expressed thoughts of self-harm or discussed engaging in criminal acts — a pointed concern for regulators focused on consumer protection.
The scope of the investigation is broad. According to MSN, investigators are asking about everything from OpenAI's advertising policies to how it manages sensitive health data.
The timing adds real pressure. Companies preparing to go public face heightened scrutiny of their legal exposure, and a multistate government investigation — even without charges — can raise red flags for potential investors and complicate a roadshow narrative built around safety and responsible AI development.
For ordinary users, the investigation touches on questions that go beyond corporate governance: whether AI chatbots are being built with adequate guardrails for people in crisis, whether personal and health data is being handled responsibly, and whether children are adequately protected. The outcome could shape how aggressively regulators pursue AI companies more broadly at a moment when the technology is becoming deeply embedded in daily life.