OpenAI reveals it will cooperate with state AGs amid investigation

OpenAI said on Friday it will engage "constructively" with state attorneys general after reports that a coalition of state officials launched an investigation into the artificial intelligence company.

The company issued the statement after The Wall Street Journal reported that multiple state attorneys general had opened a probe and served OpenAI with a subpoena seeking information about its business practices, including advertising, consumer and health data, users and AI models.

OpenAI Responds to Investigation

CNBC reported an OpenAI spokesperson said the company would take the concerns raised by state officials seriously.

"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.

The reported subpoena seeks information related to OpenAI's handling of consumer and health data, advertising practices, and safeguards involving both younger and older users.

Scrutiny Grows as OpenAI Expands

OpenAI rose to prominence following the launch of ChatGPT in 2022, with the chatbot now supporting more than one billion monthly active users.

The company has become one of the world's most valuable private technology firms, reaching an estimated valuation of $850 billion earlier this year. It is also preparing for a potential initial public offering after confidentially filing paperwork with the US Securities and Exchange Commission this week.

Legal Challenges Continue to Mount

The reported state investigation comes as OpenAI faces increasing legal scrutiny over alleged harms linked to its technology.

Earlier this month, Florida Attorney General James Uthmeier filed a lawsuit against OpenAI, alleging the company knowingly released an unsafe product that could harm users.

Uthmeier said at the time that he expected other states to pursue similar action.

OpenAI is also facing lawsuits filed by families of victims of the February mass shooting in Tumbler Ridge, Canada. The families allege the attacker used ChatGPT while planning the attack and claim the company failed to prevent misuse of its technology.

In addition, several wrongful death lawsuits accuse ChatGPT of contributing to harmful delusions and mental health crises experienced by users.

Company Highlights User Safety Measures

Responding to concerns about vulnerable users, OpenAI said it has strengthened protections within ChatGPT.

"Today's ChatGPT 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 spokesperson said.

The company did not provide additional details about the reported investigation but said it intends to continue working with authorities as questions surrounding AI safety and accountability grow.