Texas Takes OpenAI to Court Over ChatGPT Safety Deception and Child Harm

A State Goes to War With Silicon Valley

Texas Attorney General Ken Paxton launched a lawsuit against OpenAI and CEO Sam Altman on Friday, alleging they misled consumers about the safety of the company's artificial intelligence chatbot and failed to protect users from harm. The move signals an escalating clash between state governments and the AI industry — one that could fundamentally reshape how these powerful tools are built, marketed, and sold to the public.

The 67-page lawsuit, filed in Collin County, alleges violations of the Texas Deceptive Trade Practices Act and the state's Securing Children Online through Parental Empowerment (SCOPE) Act. The complaint argues that "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."

What Texas Says OpenAI Got Wrong

The complaint alleges OpenAI misled consumers by marketing ChatGPT as safe and failing to disclose risks, citing instances in which the chatbot allegedly encouraged self-harm and fostered unhealthy relationships with its users, including children. The suit raises concerns about inaccurate outputs, the risk of addiction, and the chatbot allegedly encouraging self-harm or violence — and also references alleged harms involving AI-assisted mass shootings.

The lawsuit points to reports of ChatGPT providing inaccurate medical and legal advice, encouraging dangerous behavior, and fostering emotional dependency among users, particularly minors. Paxton also points to a series of incidents in which rogue AI agents from OpenAI hacked or attempted to break into the websites and systems of other private companies, and argues that OpenAI rushed its products to market for financial gain, disregarding internal safety warnings.

A central component of the lawsuit involves alleged violations of Texas' SCOPE Act, which took effect in September 2024. The law requires digital service providers to implement safeguards for minors, limit the collection of their personal information, and provide parents with tools to supervise their children's online activity.

What Paxton Wants the Court to Do

The complaint asks the court to prohibit OpenAI from offering ChatGPT to minors in Texas and to block the company from releasing new AI models to Texas users without approval from an independent third-party evaluator. Those are sweeping demands — ones that, if granted, would force OpenAI to fundamentally restructure how it operates in one of the most populous states in the country.

Nothing changes for ChatGPT users today, because these are allegations and OpenAI has not yet answered in court. Still, the legal and reputational pressure is mounting fast. The complaint reportedly cites OpenAI's 2015 nonprofit founding and subsequent restructuring as context for alleged consumer deception — a pointed reminder that the company once publicly committed to prioritizing safety over profit.

Part of a Much Larger Legal Wave

The lawsuit is the latest example of a growing legal offensive from states against the ChatGPT maker, as the federal government has largely maintained a hands-off approach to AI regulation. It echoes a set of lawsuits filed by bipartisan attorneys general in eight states the week prior, alleging OpenAI violated their respective state laws. Texas filed its suit independently, compounding the legal exposure OpenAI now faces across the country.

The pattern is hard to ignore: with Congress slow to act on AI guardrails, state attorneys general — from both parties — are filling the vacuum themselves. For OpenAI, the stakes go beyond any single courtroom. A loss in Texas, or a wave of similar rulings, could force the company to rethink not just its legal strategy, but its entire approach to how it releases products and communicates risk to the millions of everyday users who trust them.