OpenAI, the creator of ChatGPT, is now the subject of a multistate investigation into whether its AI products have caused harm to users. The probe arrives at a critical juncture, as the company reportedly moves closer to an initial public offering.
The inquiry, led by a group of state attorneys general, focuses on possible deceptive practices and consumer protection violations tied to the chatbot's output. This regulatory pressure could complicate OpenAI's IPO timeline and valuation.
OpenAI stated it will respond "constructively" to the investigation. The company also asserted it already has measures in place to protect its customers, though it did not detail specific safeguards.
The probe underscores growing tensions between rapid AI deployment and consumer safety. If findings lead to penalties or mandated changes, it could set a precedent for how AI firms are regulated at the state level.
Some legal experts argue the investigation may be premature, as concrete evidence of harm remains thin. They caution that aggressive regulation could stifle innovation without clear consumer benefits.