OpenAI, the company behind ChatGPT, has received a subpoena from multiple state attorneys general as part of a probe into whether its chatbot poses risks to users. The investigation lands at a particularly awkward moment: the company has confidentially filed for an initial public offering on U.S. markets.
According to reporting from multiple outlets including MSN and Tech in Asia, the multistate probe focuses on potential harm to users of OpenAI's chatbot products. The exact states involved and the specific nature of the alleged harms were not detailed in the available sources.
The legal pressure comes as OpenAI and its rivals are racing toward public markets. According to Moneycontrol, OpenAI filed its confidential IPO paperwork about a week after archrival Anthropic did the same. CEO Sam Altman has publicly framed this moment as the company entering what he calls a "third phase," outlining new goals for the organization.
For a company seeking to raise money from public investors, a government investigation creates real complications. Subpoenas and active probes typically must be disclosed in IPO filings, meaning potential shareholders will see the legal scrutiny front and center before deciding whether to buy in. Regulators at the state level have increasingly positioned themselves as watchdogs on AI consumer products, particularly around issues like mental health impacts and protections for minors.
The timing underscores a broader tension in the AI industry: companies are moving fast toward massive valuations while lawmakers and attorneys general are still working out how existing consumer-protection laws apply to AI systems. This probe could become a test case for how aggressively states are willing to scrutinize the companies building the technology.