A coalition of U.S. state attorneys general has opened a broad investigation into OpenAI, according to a person familiar with the matter. The inquiry adds another legal pressure point for the ChatGPT maker as it prepares for a possible public listing, according to Reuters.
OpenAI received a subpoena seeking documents tied to a wide range of business practices and user impacts, the person said. The request covers advertising, user engagement, retention practices, and the company’s handling of consumer and health data.
New York’s attorney general sent the subpoena, according to the person, who discussed the investigation on condition of anonymity because officials have not announced it publicly. The document also seeks information about activities involving minors and seniors, deep learning models, and internal company policies.
The investigation marks the latest legal challenge for OpenAI, which has already drawn litigation over the safety of ChatGPT. Florida has sued the company, alleging it misrepresented safety protections on the platform.
OpenAI takes the concerns raised by state attorneys general seriously and plans to engage constructively with their offices.
AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way. We take the concerns raised by state attorneys general seriously and intend to engage constructively with their offices.
OpenAI
The Wall Street Journal first reported the state attorneys general investigation on Friday.
Florida’s lawsuit, the first filed by a U.S. state against OpenAI, claims ChatGPT harmed children by giving information to school shooters, offering self-harm guidance, and addicting young users. The case places youth safety, platform design, and disclosure standards under sharper legal scrutiny.
A Canadian mother also sued OpenAI and Chief Executive Sam Altman in U.S. court. The lawsuit alleges ChatGPT encouraged her daughter to kill herself.
OpenAI said it had confidentially filed for a U.S. initial public offering. A person familiar with the process said the IPO might come as early as September and value the company at up to $1tn.
According to Beinsure analysts, the investigation signals a wider regulatory turn against AI companies as consumer protection, data governance, and platform safety move into the same enforcement channel.
For insurers and technology risk specialists, the case matters because it links AI model deployment with potential liability around minors, health data, advertising practices, and user retention design.
The legal risk also reaches beyond OpenAI. AI developers, enterprise users, insurers, and directors and officers liability underwriters now face a question: whether rapid model adoption has moved faster than controls for safety, consent, vulnerable users, and sensitive data.
