OpenAI Under Investigation by State Attorneys General Over Data Handling and Ad Policies

OpenAI, a leading artificial intelligence company, is reportedly facing an investigation by a coalition of US state attorneys general. The inquiry focuses on a range of critical issues, including the company’s advertising policies, its approach to user engagement and retention, model behavior, and, significantly, its handling of consumer and health data. The investigation also extends to how OpenAI addresses the protection of minors and seniors using its platforms.

The Wall Street Journal first reported that OpenAI received a subpoena from New York’s attorney general on Friday, initiating the formal process. While the exact states involved in the broader coalition have not been publicly disclosed by OpenAI, the scope of the subpoena indicates a comprehensive review of the company’s operational practices.

Key Areas of Scrutiny

The investigation centers on several crucial aspects of OpenAI’s operations. Attorneys general are examining the company’s advertising strategies and how it retains users, which could involve scrutinizing the claims made about its AI models and their performance. A significant part of the inquiry is dedicated to OpenAI’s data handling policies, particularly with sensitive consumer and health data, raising questions about privacy, security, and potential misuse. The treatment of vulnerable populations, specifically minors and seniors, is also a focal point, aiming to assess the safeguards in place to protect these groups from potential harm or exploitation by AI technologies.

OpenAI’s Response

A spokesperson for OpenAI confirmed to The Wall Street Journal that the company is cooperating with the investigation. The company stated, “AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way.” They further added, “We take the concerns raised by state attorneys general seriously and intend to engage constructively with their offices.”

Bloomberg also reported a company spokesperson indicating that ChatGPT now features “a more protective experience for minors and people experiencing difficult situations, with safeguards that direct them to real-world resources and trusted human contacts.” However, specific details about these safeguards or the identities of the involved states remain undisclosed.

Broader Regulatory Landscape for AI

This investigation comes at a time when AI companies, including OpenAI, are facing increasing scrutiny from regulators worldwide. The rapid advancement and widespread adoption of AI technologies have prompted concerns about their societal impact, ethical implications, and the need for robust regulatory frameworks. Globally, governments are grappling with how to balance innovation with public safety and consumer protection.

In India, the government and regulatory bodies like the Ministry of Electronics and Information Technology (MeitY) and the IndiaAI Mission are actively discussing frameworks for AI governance. While this specific investigation is in the US, its outcomes could influence discussions and potential regulations in other jurisdictions as global policymakers observe how leading AI companies address these challenges. The focus on data privacy, consumer protection, and the impact on vulnerable groups aligns with broader concerns being raised in India regarding responsible AI development and deployment.

Key facts

Aspect	Detail
Investigating Body	Coalition of US State Attorneys General
Primary Focus	Advertising, user data handling, model behavior, treatment of minors and seniors
Initiating Action	Subpoena from New York’s Attorney General
OpenAI’s Stance	Cooperating with the investigation

Ongoing Legal Challenges for OpenAI

The investigation by state attorneys general is not an isolated incident for OpenAI. The company recently prevailed in a high-profile legal battle against co-founder Elon Musk, who accused them of breaching a founding agreement. Despite this victory, OpenAI continues to face other lawsuits, including allegations of copyright infringement and claims linking ChatGPT to suicide. Earlier this month, Florida Attorney General James Uthmeier filed a lawsuit against OpenAI and CEO Sam Altman, alleging that the company disregarded safety warnings and endangered children. These legal challenges highlight the complex regulatory environment and ethical considerations central to the development and deployment of advanced AI.

This development matters for Coruja’s readers in India as it underscores the growing global trend towards regulating AI, especially concerning data privacy and consumer protection. As India charts its own course in AI governance, the outcomes and precedents set by investigations in other major markets like the US will provide crucial insights into potential regulatory approaches and industry best practices that could eventually impact AI development and usage within India.

Source: TechCrunch AI: https://techcrunch.com/2026/06/13/openai-faces-investigation-from-state-attorneys-general/