A coalition of US state attorneys general has issued a broad subpoena to OpenAI, demanding extensive documentation on how ChatGPT protects its users. The legal action arrives at a critical juncture for the company, which recently filed confidential paperwork for an initial public offering that analysts estimate could value the ChatGPT maker at roughly $1 trillion (€861bn).
The investigation, led by New York's attorney general and reported first by The Wall Street Journal, targets OpenAI's advertising practices, user safety protocols, handling of consumer and health data, and policies regarding minors and older adults. The subpoena was served on Friday, just days after the IPO filing.
OpenAI has stated it will cooperate with the request, emphasizing that safety measures are already embedded in its products. A spokesperson said the company takes the concerns "seriously" and is committed to deploying the technology responsibly. The full list of participating states has not been disclosed.
Mounting Legal Pressure
This subpoena adds to a growing list of legal challenges for OpenAI. Last Thursday, a Canadian woman filed a lawsuit blaming ChatGPT for her daughter's suicide. Earlier in June, Florida Attorney General James Uthmeier sued the company and CEO Sam Altman after two shootings where alleged attackers reportedly used the chatbot to plan their crimes. OpenAI responded that its models repeatedly urged the individuals to seek help from mental health professionals and that it cooperated with police in both cases.
In May, a federal jury in Oakland, California took less than two hours to reject Elon Musk's lawsuit accusing Altman of abandoning OpenAI's nonprofit roots, ruling that Musk had filed too late. Musk called the decision a "calendar technicality" and said he would appeal.
The regulatory clampdown extends beyond the US. European regulators have opened investigations into Musk's rival chatbot Grok over antisemitic and sexualised content, including deepfake images. Meanwhile, Anthropic, another AI company preparing for an IPO, was told by the Trump administration to restrict two of its models abroad on national security grounds, illustrating how AI governance has become a fraught political battleground.
For European readers, the developments underscore the transatlantic dimension of AI regulation. As OpenAI expands its presence in Europe—recently opening an office in Madrid to boost ChatGPT adoption in Spain—the company faces scrutiny from both US and European authorities. The outcome of these legal battles could shape how AI firms operate across the continent, particularly in areas like data protection and user safety, which are governed by the EU's General Data Protection Regulation (GDPR).
The IPO itself also has implications for European investors and tech markets. A successful listing could spur further investment in AI startups across Europe, while regulatory setbacks might slow the pace of innovation. As the situation unfolds, European policymakers and industry watchers will be closely monitoring how OpenAI navigates these challenges.
