Texas Attorney General Ken Paxton filed suit Friday against OpenAI and CEO Sam Altman, claiming the company failed to warn consumers about potential dangers from its AI models.

The complaint alleges violations of Texas consumer protection and children's online safety laws. "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," it states. Paxton argues ChatGPT is prone to errors and hallucinations despite being marketed as trustworthy and safe, citing users who relied on incorrect healthcare information, and says the company lacked required safeguards for minors under the state's Securing Children Online Through Parental Empowerment Act.

An OpenAI spokesperson said the company has worked with experts to improve ChatGPT, mitigate risks and build safeguards, adding that governments have an important role in setting safety standards and that it is committed to working with Texas and other states on policies covering the entire AI industry.

Eight other states - Arkansas, Arizona, Idaho, Montana, Iowa, Kansas, West Virginia and Nebraska - sued OpenAI earlier this month over similar claims, and Florida filed its own suit in June. Paxton, who is running for a Senate seat against Democrat James Talarico, said he will fight to protect Texans from AI harms and ensure powerful tech companies are not above the law.

Source: The Hill