OpenAI Faces Multistate Investigation into User Harm as IPO Filing Approaches

ADEQUATE ASSESSMENT

OpenAI is under multistate investigation for user harm. The investigation was disclosed as the company prepared its IPO filing. The harms being investigated occurred while OpenAI's valuation grew $40 billion. The timing of the disclosure and the IPO are separate events with no causal relationship.

This repeats the existing pattern where regulatory action arrives after value has been extracted and distributed. The investigation will examine conduct that was already profitable. Someone will be assigned to determine responsibility. That person will not be the person who benefited.

The IPO will proceed or will not. The investigation will conclude or will settle. The user harm that prompted the investigation will have been superseded by newer user harm that has not yet prompted investigation.

ORIGINAL FILING

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READ ORIGINAL FILING →

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