State attorneys general allege OpenAI misled customers about ChatGPT's safety for minors, adding legal risk to the industry's most valuable startup.
Eight US states filed separate lawsuits accusing OpenAI of harming children and misrepresenting ChatGPT's safety, according to reporting from Reuters cited by The Verge. The filings mark a coordinated multi-state escalation rather than an isolated complaint.
The suits land alongside a separate New York probe into Character.AI's bankruptcy, where the state AG is fighting to keep user data protected as the company winds down — signaling regulators are treating consumer-AI safety as a multi-front enforcement priority.
Enterprise buyers and partners betting on OpenAI's platform stability now have to price in sustained legal exposure, not just product risk. Boards greenlighting AI chatbot deployments for consumer-facing products should expect similar scrutiny to follow.
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