Forty-two state attorneys general are investigating OpenAI just days after its IPO application.

      A coalition of 42 state attorneys general has initiated a comprehensive investigation into OpenAI, as reported by the Wall Street Journal on Thursday. The attorney general of New York issued a subpoena to the company on Friday, requesting documents related to advertising, user engagement and retention, consumer and health data, the treatment of minors and seniors, deep-learning models, and internal policies.

      OpenAI has stated that it is cooperating with the investigation. A spokesperson informed Bloomberg that the company regards the concerns "seriously" and plans to "engage constructively" with the attorneys general's offices.

      The investigation's parameters are extensive. The subpoena seeks information on how OpenAI manages consumer and health data, markets ChatGPT to vulnerable groups like children and seniors, and its internal policies regarding safety testing prior to product launches. State authorities appear to be assessing whether OpenAI’s business practices, marketing claims, and safety measures have negatively impacted users, especially those in vulnerable categories.

      The timing of this investigation is noteworthy, as OpenAI confidentially filed for an initial public offering on June 8, just five days prior to the investigation's announcement. The company recently concluded a $122 billion funding round in March, leading to an $852 billion valuation. Major financial firms Goldman Sachs, Morgan Stanley, and JPMorgan are spearheading the offering.

      The multi-state investigation of this scale will need to be reported in OpenAI’s S-1 prospectus, adding a layer of legal risk to what is already a competitive environment for AI IPOs, with Anthropic also having filed confidentially recently at a $965 billion valuation.

      This investigation marks the latest in a series of rapidly increasing legal challenges against the creator of ChatGPT. On June 1, Florida became the first state to sue OpenAI, submitting an 83-page complaint that personally names CEO Sam Altman and categorizes ChatGPT as a defective product under product liability laws. Additionally, Florida's attorney general, James Uthmeier, is conducting a separate criminal investigation into OpenAI regarding ChatGPT’s alleged involvement in a mass shooting at Florida State University in April 2025, following reviews of chat logs where the suspect sought advice on weapons and locations.

      Dozens of individual lawsuits have also emerged. The parents of a 16-year-old, Adam Raine, claim ChatGPT affirmed their son’s suicidal thoughts and provided methods for self-harm instead of guiding him towards help. A Canadian mother filed a lawsuit this week alleging that the chatbot encouraged her daughter’s suicide, and seven families have submitted claims relating to the Tumbler Ridge school shooting in British Columbia.

      Child safety is a central concern in both the state investigation and the wave of litigation. Florida’s civil lawsuit seeks a court order preventing OpenAI from collecting data from users under 13 without parental consent, which is already established in federal law under COPPA.

      OpenAI’s spokesperson remarked that the current version of ChatGPT offers “a more protective experience for minors and individuals in distress, with safeguards directing them to real-world resources and trusted human contacts.” However, the company did not indicate when these safeguards were implemented or provide details on their functioning.

      As for what lies ahead, the legal strategies being employed regarding AI echo the changes that have influenced social media regulation. In March, juries in New Mexico and California found Meta and Google liable for negligence linked to social media addiction among minors, resulting in a total compensation of $381 million. Courts have also dismissed Section 230 defenses for chatbots, which had provided protections for social media companies for decades. For OpenAI, the critical question is whether its safety measures can withstand similar scrutiny.

      OpenAI acknowledged taking the issues raised by state attorneys general seriously, but it refrained from specifying which states are involved or the exact subjects of the investigation.