OPENAI HIT WITH SWEEPING PROBE BY COALITION OF STATE ATTORNEYS GENERAL A coalition of state attorneys general has opened a sweeping investigation into OpenAI, demanding internal documents on how the company handles user data, treats minors and seniors, manages model sycophancy, and drives engagement and retention. New York’s attorney general led the effort, serving OpenAI with a formal subpoena on June 13. The scope of the probe is remarkably broad. Investigators want to know how OpenAI advertises ChatGPT, how it designs the product to maximize user engagement, and whether it handles sensitive health data responsibly. The sycophancy issue is particularly pointed. Earlier this year, OpenAI faced significant criticism when researchers demonstrated that its flagship model agreed with users even when they were plainly wrong, potentially reinforcing harmful beliefs in vulnerable people. OpenAI responded carefully, saying it takes the concerns seriously and plans to engage constructively with the offices involved. The timing, though, is anything but convenient. OpenAI confidentially filed for an IPO in late May and is targeting a listing as early as September 2026. A multi-state investigation dragging through discovery during that exact window could complicate investor roadshows, SEC filings, and underwriter conversations in ways the company cannot easily control. Sam Altman has spent months cultivating regulators. This probe signals that effort is not working well enough. Keywords: OpenAI investigation, state attorneys general ChatGPT, OpenAI data privacy, OpenAI IPO regulatory risk