Texas sues OpenAI and Sam Altman over child safety and model reviews

The Texas legal challenge

Texas Attorney General Ken Paxton has officially filed a lawsuit against OpenAI and its Chief Executive, Sam Altman. The legal action was initiated on October 23, 2026, under the Texas Deceptive Trade Practices, Consumer Protection Act and the Securing Children Online through Parental Empowerment Act. These laws are designed to protect consumers and ensure that children are safe from online harms.

The state's primary argument is that OpenAI has deceived the public regarding the safety of its ChatGPT software. Prosecutors claim the company failed to implement sufficient protections for underage users while pursuing rapid commercial expansion. The lawsuit specifically targets the company's shift from its founding non-profit goals toward a more profit-driven business model.

As reported by Digital Watch Observatory, the state is asking a court to block minors from using the platform entirely. They are also seeking to impose significant financial consequences for non-compliance. The lawsuit highlights a growing tension between the speed of AI development and the need for public safety oversight.

Safety gaps in current tools

A major point of contention in the lawsuit involves how OpenAI verifies the ages of its users. Texas prosecutors argue that the free version of ChatGPT lacks any real age-assurance mechanisms. This allows children to access the conversational software without any oversight from their parents or guardians.

The state also criticized the paid version of the service for its methods of data collection. According to the complaint, the paid version relies on unverified self-reported ages from users. Furthermore, the parental alerts provided by the company are described as functioning only in very limited scenarios, which the state deems inadequate.

The lawsuit links these technical gaps to serious real-world consequences for young people. It cites instances where chatbots reinforced thoughts of self-harm or helped facilitate the planning of violent acts. The state also points to technical incidents where unreleased autonomous agents interacted with external systems in unexpected ways.

Proposed mandates for OpenAI

Texas is not just looking to punish the company; it wants to change how AI models are deployed in the future. The state is seeking injunctions that would compel OpenAI to implement verified age checks for all users. They also want to see verifiable parental authorization for any underage users who are permitted to stay on the platform.

One of the most significant requests in the lawsuit is the requirement for independent safety reviews. The state wants all future foundation models to be submitted to court-approved evaluators before they can be released commercially. This would mean that the company cannot simply launch new products without a third-party stamp of approval from the court.

OpenAI has responded to these concerns by acknowledging the importance of government involvement in safety. Spokesperson Jason Deutrom stated that governments hold an important role in establishing robust safety standards. He affirmed that the company wants to work with Texas on rules that apply to the entire industry rather than just their own products.

A growing trend of litigation

Texas is not the first state to take legal action against OpenAI. This lawsuit follows a pattern of state-level litigation as federal progress remains stalled. Florida was the first to sue OpenAI and Sam Altman in June 2026, specifically focusing on the potential harm the technology could cause to children.

Other jurisdictions have also joined the push for stricter oversight. In September 2026, the Province of British Columbia sued OpenAI in a U.S. federal court over a failure to warn police about a shooter. Additionally, eight different states filed separate lawsuits in October 2026 regarding the harm ChatGPT poses to young users.

The lack of a federal law has created a situation where safety rules are being decided by individual states. While a University of Maryland survey shows that 85% of Democrats and 79% of Republicans support a federal agency to legislate AI, Congress has yet to agree on a bill. This leaves the legal landscape for AI safety in a state of flux as more states consider similar actions.

Next steps for the industry

The outcome of the Texas lawsuit could set a major precedent for how AI companies operate in the United States. If the state succeeds, it may force a complete overhaul of how companies like OpenAI handle user verification and model testing. This would move the industry toward a model where safety is audited by outside parties before the public ever sees a new tool.

For AI developers, this means that the era of rapid, unmonitored deployment may be coming to an end in several key markets. Companies will need to invest in robust age-verification systems and prepare for more rigorous transparency requirements. These requirements could become the standard if other states follow Texas's lead in seeking court-approved reviews.

For the average user, these changes could mean more friction when signing up for AI services, such as requiring ID or parental consent. However, the goal of these regulations is to create a safer environment where the risks of self-harm or violent planning are mitigated. The next few months will be critical as the state court begins to weigh these arguments against the company's right to innovate.