A man is seen using OpenAI's ChatGPT chat website. (Credit: Jaap Arriens/NurPhoto via Getty Images)
Texas Attorney General Ken Paxton has filed a lawsuit against artificial intelligence company OpenAI and its chief executive, Sam Altman, alleging the maker of ChatGPT deceived consumers about the safety of its flagship chatbot and failed to protect users from potential harms.
Texas sues OpenAI and Sam Altman
What we know:
The legal action, filed in state district court under the Texas Deceptive Trade Practices–Consumer Protection Act, accuses San Francisco-based OpenAI Global LLC of misleading the public about the risks associated with reliance on large language models.
According to the complaint, OpenAI marketed ChatGPT as a reliable and safe tool while releasing an undertrained product without adequate guardrails. State prosecutors argue the technology can output inaccurate or damaging information and claim the company prioritized market dominance over user safety.
The state’s lawsuit outlines several alleged consequences of widespread chatbot use, asserting that vulnerable users have been encouraged toward self-harm, minors have become overly reliant on the software without parental supervision, and professionals have suffered public humiliation from incorrect outputs. The suit further claims the product was improperly used by individuals seeking assistance with violent acts.
The filing also highlights OpenAI's origin as a non-profit organization established in 2015 to advance digital intelligence for public benefit, contrasting those founding principles with its current commercial expansion.
What they're saying:
"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 accompanying the announcement. "I will fight to protect Texans from the harms of AI and ensure that powerful technology companies are not above the law."
The other side:
In response to the action, OpenAI defended its product development practices while offering to work alongside regulators on statewide standards.
"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. "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."
Multiple states suing OpenAI, claiming its ChatGPT harms children, deceives adults
Eight states have filed lawsuits against artificial intelligence giant OpenAI, the parent company of chatbot ChatGPT, accusing the company of violating state consumer protection laws by hurting children and being deceptive with adults in an alleged reckless pursuit of profit.
What's next:
The company has taken steps in recent months to bolster safety features across its platform, particularly for younger demographics and sensitive queries.
In late 2025, the company collaborated with more than 170 mental health experts to refine model behavior, resulting in measurable reductions in inappropriate responses during sensitive interactions. The platform has also integrated expanded crisis hotline links, automated reminders for users to take breaks during extended sessions, and enhanced routing to direct sensitive conversations to higher-guardrail models.
To address concerns regarding younger users, OpenAI formed an Expert Council of Well-Being and AI, implemented Under-18 Principles in its operational guidelines, and introduced age-prediction tools designed to automatically apply heightened safeguards to accounts likely belonging to minors. The company has also introduced a specialized experience tailored for teenage users that includes enhanced parental oversight controls and healthy-use prompts.
The Texas lawsuit seeks injunctive relief and financial penalties under state consumer protection statutes.
The Source: Information in this article is from Attorney General Ken Paxton and OpenAI.