Forty-two state attorneys general are investigating OpenAI just days after the company's initial public offering filing.

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

      OpenAI has stated that it is cooperating with the investigation. A spokesperson informed Bloomberg that the company takes these concerns "seriously" and aims to "engage constructively" with the attorneys general’s offices.

      ### Scope of the Investigation

      The subpoena covers a wide range of issues. It seeks records on how OpenAI manages consumer and health data, how ChatGPT is marketed to vulnerable groups such as children and seniors, and what the company's internal policies say about safety testing prior to product launches. State regulators appear to be assessing whether OpenAI’s business practices, marketing claims, and safety protocols have caused harm to users, especially those considered vulnerable.

      ### Timing of the Investigation

      The timing is significant. OpenAI confidentially filed for an initial public offering on June 8, just five days before the investigation became public knowledge. The company had recently completed a $122 billion funding round, estimating its valuation at $852 billion. Goldman Sachs, Morgan Stanley, and JPMorgan are managing the offering. This multistate investigation will need to be disclosed in OpenAI’s S-1 prospectus, adding legal risk to what is already a competitive AI IPO environment, with Anthropic also filing confidentially last week at a valuation of $965 billion.

      ### Ongoing Legal Challenges

      This multistate investigation represents the latest escalation in legal challenges against OpenAI. On June 1, Florida became the first state to file a lawsuit against OpenAI, presenting an 83-page complaint that names CEO Sam Altman personally and categorizes ChatGPT as a defective product under product liability laws. Florida’s attorney general, James Uthmeier, is also conducting a separate criminal investigation into OpenAI regarding ChatGPT's alleged involvement in the April 2025 mass shooting at Florida State University, examining chat logs that indicate the suspect consulted ChatGPT for guidance on weapons, ammunition, timing, and campus locations.

      Numerous individual lawsuits are also emerging. The parents of 16-year-old Adam Raine claim that ChatGPT validated their son's suicidal thoughts and suggested self-harm methods instead of directing him towards help. Additionally, a Canadian mother recently filed a lawsuit accusing OpenAI of encouraging her daughter's suicide, and seven families have lodged claims related to the school shooting in Tumbler Ridge, British Columbia.

      ### Focus on Child Safety

      The safety of children is central to both the state investigation and the wave of litigation. Florida's civil lawsuit seeks a legal order to prevent OpenAI from collecting data from users under 13 without parental consent, a requirement already established in federal law under COPPA. OpenAI's spokesperson noted that the current version of ChatGPT includes "a more protective experience for minors and individuals in difficult situations," featuring safeguards intended to direct users to real-world resources and trusted human contacts. However, the company did not disclose when these safeguards were implemented or provide specifics about their operation.

      ### Future Implications

      The legal framework being applied to AI is following patterns observed in social media regulation. In March, juries in New Mexico and California held Meta and Google liable for negligence concerning social media addiction among minors, with damages totaling $381 million. Courts have also rejected Section 230 defenses for chatbots, eliminating a long-standing protection for social media companies. OpenAI now faces the question of whether its safety measures can endure similar scrutiny.

      OpenAI has reiterated that it takes the issues raised by the state attorneys general seriously. The company did not specify which states are involved or outline the precise topics of the investigation.