State AGs Probe OpenAI Over Safety, Privacy, and Child Risks

State attorneys general have launched a wide probe into OpenAI. They are seeking records on ads, data handling, child use, and user engagement. The move adds pressure as Florida’s lawsuit and new state laws expand rapidly.
State AGs Probe OpenAI Over Safety, Privacy, and Child Risks
Written By:
Yusuf Islam
Reviewed By:
Manisha Sharma
Published on
Updated on

A coalition of U.S. state attorneys general has opened a broad investigation into OpenAI and issued an expansive subpoena on Friday, June 12. The states want records on advertising policies, user interactions, data handling, and product use by children and older users.

The probe, led by New York’s attorney general, could bring new scrutiny to how OpenAI designs, markets, and monitors ChatGPT and its other AI products. The company said it will engage constructively with the states.

How far can state regulators push OpenAI before federal rules take over?

Broad Demands from State Investigators

The Wall Street Journal reported that the attorneys general want documents tied to deep learning algorithms, company policies, consumer health information, and user retention tactics. The request reaches into areas that sit at the center of OpenAI’s business. OpenAI depends on hundreds of millions of people using a single chatbot. That scale places pressure on safety systems, privacy controls, and engagement design.

The subpoena may now force public scrutiny over how the company handles delicate conversations and monitors product use. It may also draw attention to how OpenAI manages data across its services.

Months of State Warnings: Were They That Serious?

The subpoena follows months of warnings from state officials. The National Association of Attorneys General sent a December 2025 letter to Meta, Google, OpenAI, and other AI providers. That letter said generative AI could threaten the public. It also asked companies to explain their safeguards by January 16, 2026.

Earlier, Attorney General Rob Bonta and Attorney General Kathy Jennings met with OpenAI and sent a letter over concerns about how OpenAI products interact with children. That meeting came about a week after Bonta and 44 other attorneys general sent a separate letter to 12 major AI companies.

Florida Suit Raises the Stakes: How High?

Florida became the first state to sue OpenAI directly on June 1. Attorney General James Uthmeier sued OpenAI and CEO Sam Altman personally. The complaint alleges that ChatGPT harmed children by giving information to school shooters, offering self-harm guidance, and making young users addicted without enough parental controls. Uthmeier said the company ignored safety warnings and exposed children to risk.

OpenAI said it has put in place industry-leading protections and policies. The company pointed to age prediction tools and a more protective experience for minors. Florida’s case grew out of a criminal investigation tied to a 2025 mass shooting at Florida State University. Prosecutors reviewed chat logs between the accused gunman and ChatGPT.

Also Read: OpenAI Weighs Major AI Price Cuts as Anthropic Rivalry Reshapes the Market

The state action comes as federal legislation moves slowly. On April 30, the Senate Judiciary Committee advanced the GUARD Act. The bipartisan bill would ban AI companions that simulate relationships with minors and would impose criminal penalties for chatbots that produce sexually explicit content for children.

Meanwhile, state lawmakers keep moving. Since 2025, lawmakers in 49 states and the District of Columbia have introduced 464 bills on chatbot safeguards and AI in health care, according to the National Conference of State Legislatures.

The pressure now reaches beyond regulation. Investors watching OpenAI’s expected public offering will likely track whether the investigations bring new legal risks before a possible September listing window.

Conclusion

The OpenAI investigation marks a major escalation in state-level scrutiny of AI companies. Attorneys general are examining ChatGPT safety, data privacy, child protection measures, and user engagement practices. Meanwhile, Florida’s lawsuit and growing state legislation could create new legal and regulatory challenges as OpenAI moves toward a potential IPO.

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