OpenAI is facing one of the biggest regulatory investigations in its history after a coalition of US state attorneys general launched a broad probe into the company and issued a subpoena seeking internal records about ChatGPT and its impact on users, reports The Wall Street Journal. The investigation, reportedly coordinated by the New York Attorney General’s office and involving as many as 42 states, is examining how OpenAI attracts and retains users, how it handles consumer and health-related information, how its AI systems interact with children and older adults, and what safety measures it has in place.
Unlike earlier investigations focused mainly on privacy and competition issues, this one is looking closely at the relationship between AI systems and the people who use them. The scope of the subpoena suggests that regulators want to understand not only what ChatGPT can do, but also how it may influence people’s decisions, emotions, and behaviour over time.
According to reports, regulators are requesting documents covering a wide range of topics, including ChatGPT’s user engagement and retention practices, advertising methods, internal safety policies, deep-learning models, and the behaviour of those models during conversations. Investigators are also interested in how OpenAI studies the effects of long-term chatbot use and whether the company has properly assessed risks for vulnerable users. One area of interest is ‘sycophancy’ – a situation where an AI system becomes too agreeable and supports a user’s beliefs instead of challenging incorrect and harmful assumptions.
The timing of the investigation is particularly important because OpenAI recently confidentially filed paperwork for a US initial public offering (IPO). The company is reportedly discussing valuations ranging from around $850 billion to as much as $1 trillion. Since the launch of ChatGPT in late 2022, OpenAI has grown from a research-focused organization into a global AI leader used by hundreds of millions of people worldwide. Any major regulatory investigation at this stage could become a key issue for investors evaluating the company’s future risks and growth prospects.
The probe also comes as OpenAI faces increasing legal and political pressure from multiple directions. Earlier this month, Florida became the first US state to file a lawsuit directly against OpenAI and its CEO, Sam Altman, alleging that the company released technology despite known safety risks and failed to protect users, including children. Florida authorities have also pursued inquiries connected to allegations that ChatGPT was used during planning activities related to a deadly shooting at Florida State University. At the same time, OpenAI has faced lawsuits involving claims that chatbot interactions contributed to serious psychological harm, including suicide-related cases that have attracted attention in both North America and Europe.
The investigation is part of a broader trend in which state regulators are paying closer attention to artificial intelligence. In late 2025, a group of 42 state attorneys general sent letters to major AI companies – including OpenAI, Google, Meta, Anthropic, and xAI – warning about potential risks linked to chatbots. These officials expressed concerns about harmful advice, criminal misuse, emotional manipulation, exploitation of minors, and other dangers that could arise if AI systems are not properly controlled.
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Ashutosh is a Senior Writer at The Tech Portal, largely reporting on new tech, and intersection of technology and business. Ashutosh’s career spans across nearly a decade of technology writing across multiple platforms and languages.
