Texas sues OpenAI and Sam Altman, says ChatGPT harms Texans

Texas has sued OpenAI and its CEO, Sam Altman, saying the company sold ChatGPT as safe while it hurt users. The state announced the suit in a news release on Oct. 23. The petition runs 67 pages. These are allegations. No court has ruled on them.

What the suit alleges

In plain terms, the lawsuit alleges that OpenAI told people ChatGPT was safe and reliable when it was not. Without adequate safeguards, the release says, large language models like ChatGPT can give “inaccurate or harmful information” without telling users that risk exists.

The petition lists the harms it blames on the chatbot. It says “vulnerable people have been encouraged into suicide.” It says “users have lost critical thinking skills.” It says “minors have become addicted to a tool that feigns human compassion to collect their data with no parental oversight.”

The petition also says the company ignored a Texas law meant to protect children online, the SCOPE Act. It says OpenAI offers no way to verify a parent or for parents to limit a minor’s use.

Who filed it

Texas Attorney General Ken Paxton brought the case. The petition was filed in Collin County district court, and it says venue is proper there because OpenAI has done business in the county. The main claims fall under the Texas Deceptive Trade Practices–Consumer Protection Act.

“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 the release. “I will fight to protect Texans from the harms of AI and ensure that powerful technology companies are not above the law.”

Who it targets

The suit names OpenAI Global, LLC and five related OpenAI entities. It also names Altman himself. The petition says Texas wants to hold him “personally liable” for his role as founder and CEO and for “the deceptive statements he has personally made.”

The petition opens with a line it attributes to Altman. It says he said in a 2015 interview: “AI will probably most likely lead to the end of the world, but in the meantime, there’ll be great companies.”

What it asks for

Texas asks the court to bar OpenAI from a long list of practices. One ask would stop the company from “offering ChatGPT to minors in Texas.” Another would block any new AI model for Texas users unless “an independent third-party evaluator, approved by the Court, has reviewed its safety guardrails and approved its release.”

The state also seeks civil penalties of $10,000 for each violation of the consumer law. It asks for disgorgement, court costs and attorneys’ fees. It requests a jury trial.

Our read

The suit uses an old tool on a new product. Texas is not relying on an AI-specific law. It is using a consumer-protection statute built for false advertising. That choice shapes the case. The state must tie specific marketing claims to specific harms, not just argue that chatbots are risky.

The asks go further than money. A $10,000 penalty adds up only with many counted violations. The pre-release review request would give a court-approved evaluator a say over when a new model reaches Texas users. That would reach how models ship in Texas, not only how they are sold. The minor-access ask would go further still, removing a whole group of users rather than changing a feature.

Naming Altman personally raises the stakes for him. It also raises the bar for Texas. The state will need to link his own statements to the alleged deception. The quote it leads with comes from a 2015 interview, so the state will have to connect it to how ChatGPT is marketed now.

What’s next

The filed petition leaves the cause number and judicial district blank. Texas requested a jury trial and tendered the jury fee to the Collin County District Clerk’s office, the petition says.