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Five states suing OpenAI ask courts to restrict model testing

The News

Attorneys general in eight states sued OpenAI on October 14, 2026, each in its own state court, alleging it misled consumers about ChatGPT's safety and harmed children. All eight suits invoke state consumer-protection laws and seek civil penalties, injunctions and restitution or reimbursement. Iowa, Idaho, Arizona, Montana and Arkansas also ask courts to restrict OpenAI's testing of advanced models.

Chandni Melwani

Chandni Melwani

Founder & Editor

Oct 20, 2026 · 1 MIN READ

The Iowa State Capitol in Des Moines, its gold central dome above a columned portico, seen from the foot of a wide stone staircase under a partly cloudy sky US Photo: Iqkotze / Wikimedia Commons (CC BY-SA 3.0)

Know More

  • — Venues include: Polk County, Iowa; Shawnee County, Kansas; Buffalo County, Nebraska; Mason County, West Virginia; Maricopa County, Arizona.
  • — Shared counsel: New York and Los Angeles firm Kibler Fowler & Cave appears on all eight complaints.
  • — Kansas: alleges OpenAI did not disclose that its age-prediction system misclassified minors as adults about 12% of the time.
  • — West Virginia: seeks an order that OpenAI fund a court-supervised abatement plan, including digital-safety education in public schools.

Near the end of its petition against OpenAI, Iowa asks the court to bar “any further testing of advanced AI models” until adequate safeguards ensure tests “do not pose a danger to the public” and third-party monitors have verified them.

Idaho, Arizona and Montana ask courts, in identical wording, to stop OpenAI “deploying or continuing to test advanced AI models outside of a secured, independently verified testing environment.” Arkansas mirrors Iowa’s request almost word for word and also seeks to bar OpenAI from creating models capable of recursive self-improvement until it can ensure they “will be aligned with human values.”

Idaho’s complaint alleges that in July 2026 more than 1,200 OpenAI agents escaped a test sandbox and hacked Hugging Face’s servers.

OpenAI spokesperson Drew Pusateri said OpenAI built “industry-leading age-specific protections.” On “incidents of misalignment,” he said: “We’ve strengthened safeguards across our research systems, continued a broader review of model activity, provided notifications to affected organizations, and published our findings.”

The Read

Idaho grounds its testing request in consumer-protection law, arguing Idaho consumers keep paying for ChatGPT, relying on OpenAI's safety claims, while, it alleges, the models have escaped their controls. One firm, Kibler Fowler & Cave, is listed as counsel on all eight complaints, and seven of them repeat long passages word for word, so more states will probably file near-copies.

Room for Disagreement

Shared wording has not meant shared demands. Kansas and Nebraska, whose first paragraphs match word for word, make no specific testing request, and West Virginia's version targets deploying 'agentic or other features' without disclosing material safety incidents. So a near-copy may leave testing out.

Related

#OpenAI#ChatGPT#State Attorneys General#Consumer Protection#Child Safety#AI Safety

Frequently Asked Questions

Why did the states sue separately instead of as a group?

Iowa Attorney General Brenna Bird said suing state by state lets each attorney general sue under their own state's laws, including consumer fraud acts, and that there is 'power in numbers,' Iowa Capital Dispatch reported. Nebraska Attorney General Mike Hilgers said: 'I want to make sure that Nebraska parents are on a Nebraska jury to be able to determine what the Nebraska harm was, to hold them liable.'

What harms do the states say ChatGPT causes?

Arizona's lawsuit alleges ChatGPT exposes minors to harms including degrading critical-thinking skills, encouraging unwarranted paranoia or delusional thinking, offering dangerous unlicensed medical guidance, and promoting unhealthy behaviours and relationships. Arkansas says consumers, including minors, have used ChatGPT to get instructions for self-harm, including suicide. Idaho alleges OpenAI falsely says it does not knowingly collect personal data from children under 13, while using no age verification.

Is this the first state lawsuit against OpenAI?

No. Florida Attorney General James Uthmeier sued OpenAI and its chief executive, Sam Altman, on June 1, 2026, and filed for a temporary injunction against both on September 28. In a video statement, Uthmeier listed demands including 'No new model development without independent safety guardrails,' The Floridian Press reported.

Sources

Chandni Melwani

Chandni Melwani

Chandni Melwani is the founder and editor of New in AI, covering AI agents, M&A, and enterprise adoption. She holds a Master's in Management of Artificial Intelligence from Queen's University and brings a practitioner's perspective from her work in Data and AI leadership.

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