OpenAI hit with multistate subpoena over ChatGPT's impact on youth as IPO looms

OpenAI received a subpoena from a coalition of states, with New York Attorney General Letitia James seeking documents on user engagement and retention, health and consumer-data handling, and the chatbot's effects on minors and other vulnerable users. The inquiry follows criticism and litigation tied to allegations that ChatGPT offered harmful advice in connection with tragic events. OpenAI said it would respond constructively and pointed to safeguards it has implemented for minors and people in distress.

The timing is delicate: OpenAI is finalizing a confidential IPO filing with Goldman Sachs and Morgan Stanley as lead underwriters, targeting a potential offering as early as September 2026. Regulatory scrutiny over child safety adds a fresh risk factor to that prospectus, and arrives amid what CNBC described as 'souring' public sentiment toward AI even as adoption explodes.

The probe sits at the center of a broader tension this week between explosive consumer adoption and mounting accountability pressure. It mirrors the regulatory questions swirling around Anthropic's export restrictions and Google's lawsuit over Gemini-powered scams, suggesting governments are moving on multiple AI fronts at once. For OpenAI, the question to watch is whether the investigation produces concrete findings or settlements before the IPO window, and how aggressively the company tightens safeguards for younger users in response.