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OpenAI Faces Investigation from State Attorneys General
A coalition of state attorneys general has reportedly opened an investigation into OpenAI, escalating regulatory scrutiny of the AI leader. According to The Wall Street Journal, the company was served with a subpoena from New York’s attorney general on Friday, seeking documents on a broad range of topics including advertising practices, user engagement and retention strategies, model sycophancy, handling of consumer and health data, and treatment of minors and seniors.
TechCrunch has reached out to OpenAI and the New York attorney general’s office for confirmation. A company spokesperson told the WSJ that OpenAI is cooperating with the investigation. “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 said in a statement. “We take the concerns raised by state attorneys general seriously and intend to engage constructively with their offices.”
According to Bloomberg, the spokesperson also noted that ChatGPT now “includes a more protective experience for minors and people experiencing difficult situations, with safeguards that direct them to real-world resources and trusted human contacts.” The company declined to specify which states are involved in the investigation or to share more details about what information was requested.
This investigation adds to growing legal challenges for OpenAI in 2026. The company recently defeated its co-founder Elon Musk in a high-profile trial, after Musk accused OpenAI of violating its founding agreement. (Musk’s lead attorney said he will appeal the decision.) However, OpenAI still faces lawsuits over everything from alleged copyright infringement to ChatGPT’s alleged role in suicide. Earlier this month, Florida Attorney General James Uthmeier sued OpenAI and its CEO Sam Altman, claiming that they “ignored internal and external safety warnings, put children at great risk, and allowed a dangerous product to reach millions of Floridians.”
Altman recently apologized to the community of Tumbler Ridge, Canada, after a mass shooting, acknowledging that OpenAI failed to alert law enforcement after the company flagged and banned the suspected shooter’s ChatGPT account. The investigation and these lawsuits underscore the growing pressure on AI companies to address safety, transparency, and consumer protection as the technology becomes more pervasive. Meanwhile, the company announced this week that it has filed confidentially to go public, signaling continued growth despite the regulatory headwinds.