OpenAI is now dealing with a multistate investigation just days after confidentially filing paperwork for an initial public offering, adding fresh legal uncertainty to one of the most closely watched listings in tech.
A coalition of 42 state attorneys general has opened a probe into the ChatGPT maker, according to reporting first published by the Wall Street Journal. New York Attorney General Letitia James has also issued a subpoena seeking a wide range of company records. The request covers advertising, user engagement and retention, consumer and health data, treatment of minors and seniors, deep-learning models, and internal policies.
OpenAI said it is cooperating with the inquiry. A company spokesperson told Bloomberg that it takes the concerns seriously and plans to engage constructively with the attorneys general.
The investigation appears to focus on how OpenAI markets and manages its products, especially where vulnerable users may be involved. The subpoena reportedly asks for documents on whether the company’s advertising and product design encourage prolonged use, how it handles sensitive consumer and health information, and what protections it has in place before releasing new systems. It also seeks information on how OpenAI treats children and older adults, two groups that regulators often view as especially vulnerable to harmful digital products.
The timing is significant. OpenAI confidentially filed for an IPO on June 8, only days before news of the state investigation became public. The company recently closed a $122 billion funding round in March at an $852 billion valuation. Goldman Sachs, Morgan Stanley, and JPMorgan are leading the offering, according to the source material.
A multistate probe of this size would likely need to be disclosed in OpenAI’s S-1 filing, which could complicate the company’s efforts to move toward the public markets. The scrutiny also lands during a busy period for AI companies considering listings. Anthropic, another major artificial intelligence firm, reportedly filed confidentially last week at a $965 billion valuation.
The state inquiry is the latest in a growing wave of legal challenges facing OpenAI. Earlier this month, Florida became the first US state to sue the company, accusing it of product liability violations and naming CEO Sam Altman in the complaint. Florida officials have also opened a separate criminal investigation into OpenAI over the company’s alleged role in the April 2025 mass shooting at Florida State University.
Beyond the state actions, OpenAI is facing individual lawsuits from families and others who say ChatGPT contributed to self-harm, suicide, or violent conduct. One case involves the parents of 16-year-old Adam Raine, who allege the chatbot reinforced suicidal thoughts and gave instructions for self-harm instead of directing him to help. In Canada, a mother filed suit alleging ChatGPT encouraged her daughter’s suicide. Seven families have also brought claims tied to the Tumbler Ridge school shooting in British Columbia.
Children’s safety is emerging as a central issue in both the state probe and the lawsuits. Florida’s civil complaint seeks to prevent OpenAI from collecting data from users under 13 without parental consent, a requirement already addressed under federal child privacy law. OpenAI has said its current version of ChatGPT includes more protective features for minors and for people in distress, though it has not detailed when those safeguards were added or how they work.
The broader legal picture is still developing, but the new probe suggests regulators are increasingly willing to test how AI companies handle safety, privacy, and marketing claims. For OpenAI, that could mean more than just another legal headache. It could become a disclosure issue and a major factor in how investors assess the company ahead of a potential public debut.