A group of state attorneys general has subpoenaed OpenAI, starting a formal investigation into the company’s business practices, data management, and user safety, as reported by the Wall Street Journal.
This inquiry touches on various issues, including OpenAI’s advertising policies and how it handles sensitive health data from ChatGPT users. The specific states involved haven’t been disclosed yet.
| OpenAI At A Glance | |
|---|---|
| CEO | Sam Altman |
| Founded | 2015 |
| Headquarters | San Francisco, CA |
| Sector | Artificial Intelligence |
| Publicly Traded | No |
What Are They Investigating?
A subpoena is a legal demand for documents or testimony. Here, state AGs are requiring OpenAI to provide records related to its business operations and treatment of users.
The reported concerns include:
- Advertising policies — how OpenAI presents or plans to present ads in its products
- Health data handling — what happens when users share personal medical information with ChatGPT
- General user safety — broader questions about how the platform protects its users
The focus on health data raises serious issues. Many users have started treating ChatGPT like a personal health assistant, asking about symptoms, medications, and mental health issues. If mishandled, that data could expose users in ways that traditional tech privacy violations do not.
This investigation is at the state level, not federal. State attorneys general have often been quick to act when federal agencies lag. For instance, multiple state AGs have pursued Google over location tracking and Facebook over data privacy before federal action occurred.
Why Now?
OpenAI has been moving quickly in ways that have raised eyebrows. The company recently announced plans to transform into a for-profit public benefit corporation, changing how profits are distributed and how it’s governed. Critics argue this shift prioritizes revenue over the nonprofit safety mission OpenAI was founded on.
Additionally, OpenAI has been expanding ChatGPT into new areas, including health tools, operator APIs, and memory features that allow the chatbot to retain personal information. These developments raise questions about data collection, who accesses it, and its intended use.
The investigation comes at a time when AI regulation in the U.S. is fragmented. Congress hasn’t passed comprehensive AI legislation, leaving states to use existing consumer protection and privacy laws. TechCrunch reports that the AGs are looking into everything from ad policies to health data, indicating a broad inquiry rather than a single focused complaint.
What This Means
If you use ChatGPT, this investigation affects you directly. Here’s what you need to know:
Your health conversations may be examined. If you’ve asked ChatGPT about a medical condition, prescription, or mental health symptoms, those interactions could be part of the investigation. Remember, chatting with AI isn’t the same as consulting a doctor — and unlike doctors, AI companies typically aren’t bound by HIPAA (the Health Insurance Portability and Accountability Act).
Ads could be on the way. The fact that investigators are questioning advertising policies suggests OpenAI might be testing or planning an ad-supported model for ChatGPT. Free users could eventually see ads in exchange for continued free access.
This might push OpenAI toward greater transparency. Regulatory pressure often leads companies to improve privacy policies, enhance data deletion options, and provide users more control over their information. If this investigation gains momentum, users might see more detailed settings in ChatGPT.
As Mashable points out, the subpoenas indicate that state regulators are treating OpenAI with similar scrutiny previously directed at social media giants like Meta and Google.
Community Reaction
“The health data thing is what gets me. People tell ChatGPT things they wouldn’t even tell their doctor. There need to be real rules about this.”
“Every big tech company gets investigated eventually. The question is whether anything actually changes or if it’s just a fine they can afford to pay.”
What To Watch
- Which states go public. The participating states haven’t been named yet. When individual AGs announce themselves, it will show how serious the coalition is and if any states are taking the lead.
- OpenAI’s response to the subpoenas. The company hasn’t released a detailed public statement yet. Their approach — whether they cooperate fully, legally push back, or try to negotiate — will shape how this unfolds.
- Federal action. A broad state-level investigation like this could grab the attention of the FTC (Federal Trade Commission), which has its own inquiry into AI practices. If federal regulators get involved, the stakes rise for OpenAI.
- OpenAI’s for-profit restructuring timeline. The company’s governance changes are still being finalized. Scrutiny during this process could complicate or delay the transition.
Ava Mitchell
Ava Mitchell is a digital culture journalist at Explosion.com covering social media platforms, streaming services, and the creator economy. With 4 years reporting on TikTok, Instagram, YouTube, and the apps that shape daily life, Ava specializes in explaining platform policy changes and their impact on everyday users. She previously managed social media strategy for a tech startup, giving her firsthand experience with the platforms she now covers.
