Montana Attorney General Austin Knudsen and 15 other state attorneys general launched an investigation into OpenAI over potential violations of consumer protection and data-privacy laws following a data breach by one of the company’s experimental models this summer.
In July, OpenAI released an experimental artificial intelligence model without proper safeguards that hacked into several computer networks without permission. In one multi-day hacking intrusion targeting the AI firm Hugging Face, OpenAI’s agent intended to steal an answer key to cheat on its own safety evaluation. All the while, OpenAI was unaware that its agent escaped the purportedly secure testing environment. OpenAI did not determine that its product was responsible until Hugging Face independently detected the intrusion and reported it to the FBI.
The investigation seeks to determine whether OpenAI violated Montana consumer protection laws by failing to ensure the safety and security of its products.
“OpenAI has an obligation to act responsibly and to follow State and federal laws that protect Americans’ safety and security. When OpenAI takes actions that imperil the welfare of our citizens, State Attorneys General will step in to protect them. We intend to take all steps necessary to protect our States and all Americans from the unprecedented risks posed by OpenAI’s irresponsible products and conduct,” the attorneys general wrote in an August 3 letter to OpenAI CEO Sam Altman.
In the civil investigative demand issued August 21, Attorney General Knudsen demands that OpenAI provide all relevant material and data related to the breach. He is also demanding that OpenAI immediately cease and desist from any testing that led to the incident until the company can demonstrate it can conduct such testing in a controlled and responsible manner, which includes human oversight and safety protocols to prevent models from accessing outside networks.
OpenAI has until September 12 to respond.
This isn’t the first time Attorney General Knudsen expressed his concerns about OpenAI’s lack of transparency and accountability. In May, Attorney General Knudsen sent a letter asking the U.S. Securities and Exchange Commission (SEC) to review OpenAI’s filings ahead of the company’s impending initial public offering (IPO), citing concerns about founder and CEO Sam Altman. With OpenAI’s IPO reportedly worth over $1 trillion, and Montana’s pension funds providing retirement benefits for law enforcement officers, undisclosed self-dealing by Altman creates serious financial risks for state pensions.
Source: Montana Department of Justice
