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OpenAI hit with multistate probe into possible user harm as its IPO looms

A group of state attorneys general is investigating OpenAI over potential harm to users, including concerns about data privacy and false information, as the company reportedly prepares for an initial public offering.

Background

- OpenAI is the creator of ChatGPT, the AI chatbot that launched the current generative-AI boom in late 2022. The company is widely reported to be preparing for an initial public offering (IPO), which would make its financial performance and legal liabilities a matter of public interest. - A bipartisan group of state attorneys general (state-level chief legal officers) has opened a formal investigation (a "multistate probe") into whether OpenAI's products harm consumers — for example, by spreading false information, misusing personal data, or making unsafe claims. This is a coordinated legal action by multiple U.S. states, not a federal one. - The investigation focuses on possible violations of state consumer-protection laws. Such probes can lead to fines, court orders to change business practices, or even lawsuits. - The timing matters: a looming IPO means OpenAI would soon face much stricter public disclosure requirements about its risks, legal exposure, and finances. A formal state investigation could complicate the IPO and alarm potential investors.

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OpenAI hit with multistate probe into possible user harm as its IPO looms

Background

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