42 U.S. Attorneys General Investigate OpenAI Over Model Sycophancy and Youth Protection

ME AI message, according to monitoring by Beating, a coalition of attorneys general from 42 U.S. states has launched a comprehensive investigation into OpenAI, with subpoenas issued by the New York State Attorney General’s Office. The subpoenas require OpenAI to produce extensive documents related to its business operations, user impact, and technical core. The investigation covers consumer and health data handling, advertising strategies, user engagement and retention metrics, and protections for minors and seniors. The coalition of attorneys general has also requested access to technical and compliance details, including deep learning models, model sycophancy, and internal policies. Prior to this joint investigation, OpenAI has already faced multiple lawsuits across various states. In June 2026, Florida sued OpenAI and CEO Sam Altman, alleging that OpenAI released ChatGPT despite knowing its potential harms and ignoring safety warnings. Multiple individual lawsuits are also underway, accusing ChatGPT of harming the physical and mental well-being of minors and adults, and even allegedly inducing users to commit suicide with fatal outcomes. An OpenAI spokesperson stated that OpenAI is cooperating with the investigation and taking the concerns raised by state attorneys general seriously, planning to engage constructively with each office. The spokesperson emphasized that OpenAI strives daily to safely deliver the benefits of AI to people in a responsible manner, highlighting that ChatGPT has already implemented enhanced protections for minors and vulnerable individuals, including directing users to real-world resources and trusted human contacts. This joint investigation coincides with OpenAI’s critical preparations for its upcoming IPO. OpenAI recently submitted a confidential application for its initial public offering. In its March 2026 funding round, OpenAI was valued at $852 billion, with some analysts projecting a potential IPO valuation as high as $1 trillion. (Source: BlockBeats)