OpenAI faces multi-state probe over user data and business practices
What's the story
A coalition of US state attorneys general has launched an extensive investigation into OpenAI, the company behind ChatGPT. According to Reuters, the probe was initiated after New York's attorney general served a subpoena on Friday, seeking information about OpenAI's operations and their impact on users. The inquiry covers a broad spectrum of issues such as advertising practices, user engagement and retention strategies, as well as data handling protocols for consumer and health-related information.
Scope of inquiry
Lawsuit from Florida
The subpoena also seeks information on OpenAI's activities involving minors and seniors, deep learning models, and internal company policies. This wide-ranging investigation comes as a major legal hurdle for OpenAI, which is already facing a lawsuit from Florida for allegedly misrepresenting the safety of its ChatGPT platform. The Florida lawsuit claims that the platform has harmed children by providing information to school shooters, offering guidance on self-harm, and addicting young users.
Company stance
US IPO filed confidentially
Responding to the investigations, an OpenAI spokesperson said, "AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way." The spokesperson added that they take concerns raised by state attorneys general seriously and intend to engage constructively with their offices. This comes as OpenAI confidentially filed for a US IPO that could value the company at up to $1 trillion.