Paxton sues OpenAI, Altman for failing to warn Texans about ChatGPT’s ‘dangers’

Texas Attorney General Ken Paxton (R) sued OpenAI and its CEO Sam Altman on Friday, accusing the company of failing to warn consumers about the potential dangers from its AI models.

The lawsuit alleges the ChatGPT maker is running afoul of a Texas consumer protection law and kids’ online safety law, underscoring warnings about the technology’s risks from AI leaders, including Altman .

“Despite these incredible dangers, Altman and OpenAI have not only barreled ahead in creating these risks but have done so by unlawfully deceiving Texans about the safety, accuracy, and reliability of their products,” the complaint reads.

“Defendants have built an artificial intelligence empire on the backs of Texans by deceiving them, while at the same time endangering public health,” it continues.

While its products are marketed as “trustworthy, reliable, and safe,” Paxton argues ChatGPT is prone to errors and hallucinations, in which AI tools produce fake results.

He suggests this “unreliability is dangerous,” pointing to users who have relied on incorrect or misleading healthcare information from ChatGPT.

The Texas attorney general also alleges OpenAI has failed to put in place proper safeguards for minors as required under the state’s Securing Children Online Through Parental Empowerment Act.

Paxton further argues the company cannot control its technology, highlighting a series of recent incidents in which AI agents hacked into other organizations or acted in unexpected ways.

“As part of our focus on responsibly delivering the benefits of AI, we’ve worked closely with experts to continually improve ChatGPT, mitigate risks and build additional safeguards,” an OpenAI spokesperson said in a statement to The Hill.

“Governments have an important role to play in setting robust safety standards for AI, and we’re committed to working with Texas and other states on advancing pragmatic AI policies that apply to the entire AI industry – not just one company.”

Eight other states — Arkansas, Arizona, Idaho, Montana, Iowa, Kansas, West Virginia and Nebraska — sued the ChatGPT maker earlier this month, similarly arguing the company misled users about the safety of its chatbot.

Florida separately sued OpenAI in June, alleging it promoted a product it knew could harm consumers.

“With the rapid advancement of AI technology, OpenAI has the responsibility to protect users and warn them of the many dangers of its platform,” Paxton said in a statement Friday. “I will fight to protect Texans from the harms of AI and ensure that powerful technology companies are not above the law.”

Paxton is currently facing off against Democrat James Talarico in a tight race for the Lone Star state’s Senate seat.

Despite President Trump’s forceful embrace of AI, Paxton and several other GOP candidates have sought some distance on issues surrounding the technology, most notably data centers.

The Texas attorney general unveiled a plan in August to place restrictions on the controversial AI infrastructure if he is elected to the Senate.