Texas sues OpenAI over chatbot safety and risks to minors

The Texas lawsuit

Texas Attorney General Ken Paxton has launched a legal action against OpenAI and its chief executive, Sam Altman. The lawsuit was filed in a state district court based on a law regarding deceptive trade practices and consumer protection. It focuses on how the company marketed its flagship chatbot, ChatGPT.

The state argues that OpenAI deceived the public by presenting the tool as a reliable and safe product. Prosecutors claim the company actually released an undertrained model that lacks sufficient guardrails to prevent issues. They suggest that the company chose to pursue market dominance instead of prioritizing the safety of its users.

According to the complaint, the technology can produce inaccurate or damaging information. The state is seeking both financial penalties and injunctive relief. These are legal orders that would require the company to change its business practices or stop certain activities.

Alleged harms to users

The lawsuit outlines several specific consequences that have resulted from the widespread use of the chatbot. It claims that vulnerable individuals have been encouraged toward self-harm while using the platform. It also notes that minors have become overly reliant on the software without any parental supervision.

The complaint further alleges that professionals have suffered public humiliation because of incorrect outputs from the AI. In some instances, the state claims the product was used by individuals who were seeking assistance with violent acts. These allegations highlight the potential dangers of relying on large language models for sensitive information.

Ken Paxton stated that the company has a responsibility to warn users of these dangers. He said, "I will fight to protect Texans from the harms of AI," in a statement accompanying the announcement. This statement underscores the state's goal to hold tech giants accountable for the societal impact of their products.

OpenAI's defense

OpenAI has responded to the legal action by defending its development practices. A spokesperson for the company stated that they work closely with experts to improve the chatbot and build additional safeguards. They emphasized their goal of responsibly delivering the benefits of artificial intelligence to the public.

The company expressed a willingness to work with regulators to establish statewide safety standards. They argued that governments have a vital role in creating robust policies for the entire industry. They suggested that these policies should be pragmatic and apply to all companies rather than just targeting one specific entity.

The company's response suggests they view the issue as a systemic regulatory challenge. By advocating for industry-wide standards, they aim to position themselves as a cooperative partner in the development of AI policy. They continue to maintain that they are actively working to mitigate the risks associated with their technology.

Safety and oversight

In recent months, OpenAI has taken several steps to bolster safety features across its platform. These updates are specifically designed to protect younger demographics and handle sensitive queries more carefully. Toward the end of 2025, the company teamed up with over 170 mental health specialists to refine how the model behaves during sensitive interactions.

These efforts resulted in measurable reductions in inappropriate responses during such interactions. The platform now includes expanded links to crisis hotlines and automated reminders for users to take breaks. It also uses enhanced routing to direct sensitive conversations to models with higher guardrails, which are stricter safety limits.

To address the needs of younger users, OpenAI formed a group of experts focused on well-being and AI. They also implemented Under-18 Principles in their operational guidelines. These measures include age-prediction tools that automatically apply heightened safeguards to accounts likely belonging to minors.

New features for teens

OpenAI has introduced a specialized experience tailored specifically for teenage users. This experience includes enhanced parental oversight controls to give parents more visibility into their children's interactions. It also features healthy-use prompts to encourage responsible engagement with the technology.

The company's move toward more structured oversight for minors reflects the concerns raised in the Texas lawsuit. By creating a dedicated space for teens, they aim to provide a safer environment that balances utility with protection. These features are part of a broader effort to manage the risks of AI for vulnerable populations.

The legal battle in Texas will likely continue to monitor how these safeguards perform in practice. The state's lawsuit serves as a reminder of the tension between rapid technological expansion and consumer protection. As the company continues to update its tools, the legal system will determine if these measures are sufficient to prevent harm.