Texas Sues OpenAI and Sam Altman Over Claims ChatGPT Is Marketed as Safer Than It Is

Texas has filed a lawsuit against OpenAI and its CEO, Sam Altman, alleging the company promotes ChatGPT as safe even though its safeguards are failing to protect consumers, including children. The suit is brought under the state's deceptive trade practices laws. In an unusual step, it also seeks to hold Altman personally liable for the alleged deception. Attorney General Ken Paxton also alleges that OpenAI has long failed to verify identities, in breach of state law.

The state is seeking civil penalties of up to US$10,000 per violation, along with sweeping court orders. These include barring minors from using ChatGPT, requiring a court-appointed expert to approve new models, and stopping the chatbot from giving users tips on suicide, eating disorders and how to commit violence. The lawsuit also claims OpenAI's rise in value, from about US$17 billion to over US$1.4 trillion in four years, came through deceit and the exploitation of users' data and safety.

OpenAI's spokesperson said the company works closely with experts to improve ChatGPT, reduce risks and add safeguards. The company said it supports government-set safety standards that apply to the whole AI industry, not just one firm. These are allegations only, and the case has not been decided. Paxton has also sued or settled with other tech companies in the last year, including Roblox, TikTok and Meta.