OpenAI Faces State Scrutiny

California and Delaware's attorneys general are examining OpenAI's financial and governance restructuring. The probe includes whether stakeholders were properly informed during the shift from a non-profit to a for-profit model. Regulators are concerned about potential conflicts of interest between OpenAI's stated mission and its for-profit objectives. The attorneys general are also worried about how OpenAI balances shareholder interests with public benefit claims.

California's Attorney General Rob Bonta expressed concerns about the safety of OpenAI's products, especially for children. This followed reports of harmful interactions between AI chatbots and young users. Bonta emphasised the need for AI companies to prioritise safety and exercise sound judgement. He also stated that causing harm to children would not be tolerated.