Texas Attorney General Ken Paxton filed a lawsuit against OpenAI and CEO Sam Altman on October 23, 2026, in the Collin County district court. The complaint alleges that the company misled users regarding the safety and reliability of ChatGPT while failing to disclose potential risks.
The legal action cites violations of the Texas Deceptive Trade Practices-Consumer Protection Act and the Securing Children Online through Parental Empowerment Act. The state claims the service poses risks including inaccurate outputs, addiction, and the promotion of violence or self-harm.
The lawsuit seeks over $1 million in monetary relief and requests injunctive measures to restrict minors' access to the platform. Additionally, the state is pursuing court oversight for future AI model releases and has designated the case as Level 3 for discovery.
The complaint notes a significant shift in OpenAI's business model from a nonprofit to a commercial entity. The company's valuation has grown from approximately $17 billion at the time of ChatGPT's launch to over $1.4 trillion four years later.
OpenAI operates facilities in Texas related to its Stargate infrastructure project, including a site in Abilene. This lawsuit follows similar enforcement actions initiated by other states against the company throughout 2026.
