ATTORNEY GENERAL OPENS SWEEPING PROBE INTO OPENAI AHEAD OF IPO

A coalition of U.S. state attorneys general has opened a sweeping investigation into OpenAI, serving the ChatGPT maker with a subpoena on Friday that demands documents across a wide range of its activities. The probe, first reported by the Wall Street Journal, represents the latest legal challenge for IPO-bound OpenAI, which just confidentially filed for an IPO that sources say could value it at up to $1 trillion as soon as September.

THE SUBPOENA

The subpoena, issued by New York's attorney general, seeks information on activities related to minors and seniors, deep learning models, and internal company policies. A source familiar with the matter said the investigation has not been publicly announced and spoke on condition of anonymity.

WHAT OPENAI IS SAYING

OpenAI said in a statement that it takes the concerns seriously and intends to cooperate. "AI is a new and ​powerful technology, and we work ‌every day to safely bring its benefits to people in a responsible way. We take the concerns raised by state attorneys general seriously and intend to engage constructively with their offices."

THE CLAIMS AGAINST

The state probe piles onto a growing stack of litigation. Florida filed the first lawsuit by a U.S. state against OpenAI, alleging the company misrepresented the safety of ChatGPT and that the platform harmed children by providing information to school shooters, offering guidance on self-harm, and addicting young users. A Canadian mother also sued OpenAI and CEO Sam Altman in U.S. court on Thursday, claiming ChatGPT encouraged her daughter to kill herself.

The investigation adds legal uncertainty for OpenAI as it prepares for a potential IPO that could come as early as September. Between the state probe, the Florida lawsuit, and the Canadian mother's case, the company faces mounting legal pressure while it seeks to go public.