Texas sues OpenAI for deceiving consumers about safety, seeks sweeping reforms and fines

Texas sued OpenAI and its CEO on Friday, saying the artificial intelligence company claims its ChatGPT product is safe even though its safety measures may be failing to protect users, including children.

In an unusual move, the lawsuit uses the state's laws against deceptive business practices to try to hold OpenAI founder and CEO Sam Altman personally responsible for the alleged deception.

Texas is seeking civil fines of up to $10,000 for each violation, along with major court orders. These include requiring OpenAI to prevent children from using ChatGPT, get approval for new AI models from an independent expert appointed by the court, and stop the chatbot from giving users advice on suicide, eating disorders and how to carry out violence.

Attorney General Ken Paxton also claims that OpenAI has long failed to check people's identities, breaking state law.

Paxton, who is in a close race for a Senate seat, has sued or reached settlements with several technology companies over the past year, including Roblox, TikTok and Meta.

In July 2024, Meta agreed to pay Texas a record $1.4 billion to settle claims that it had used facial recognition without users' permission.

At the beginning of Friday's lawsuit, a past statement by Altman is shown prominently in italics: AI will “probably most likely lead to the end of the world, but in the meantime, there’ll be great companies.”

An OpenAI spokesperson did not immediately respond to a request for comment.

The lawsuit said OpenAI's value has risen from about $17 billion to more than $1.4 trillion in four years.

“This success has not been earned,” the lawsuit said. It claimed that OpenAI's growth came from a network of lies and the exploitation of users, including people in Texas. It also accused the company of using people's data and putting their safety at risk to increase its market value, at an unacceptable cost that threatens everyone in Texas.

The lawsuit also claimed that OpenAI misled people about its AI products and introduced ChatGPT in Texas and around the world without enough care. It alleged that this helped people who carried out deadly mass shootings, encouraged vulnerable people to die by suicide, and made children dependent on a tool that pretends to show human compassion while collecting their data without parental supervision.