The state of Florida has filed a lawsuit against OpenAI and its CEO Sam Altman claiming that the company aggressively marketed ChatGPT to the public while concealing the risks posed by artificial intelligence.
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Florida Attorney General James Uthmeier said during a news conference that OpenAI intentionally suppressed safety warnings and deceived users about the dangers of its AI chatbot. Florida is the first U.S. state to sue a company over the dangers of AI.
“Today, we announced the first-in-the-nation state-led lawsuit against OpenAI and its CEO Sam Altman,” said Uthmeier. “OpenAI and Altman ignored internal and external safety warnings, put children at great risk, and allowed a dangerous product to reach millions of Floridians.”
The Tip of the Iceberg?
The civil complaint alleges that OpenAI and Altman prioritized time to market and commercial gains over public safety, and disregarded repeated warnings from experts both inside and outside the company. The lawsuit claims the company deployed an AI product that encourages harm, including self-harm.
The lawsuit from Florida also alleges that ChatGPT collects data from minors without meaningful parental oversight, causes behavioral addiction, and cognitive harm. The lawsuit further alleges that OpenAI’s conduct causes ongoing harm to residents of Florida.
OpenAI hasn’t responded publicly to the lawsuit. But analysts were quick to say that the lawsuit by Florida could open the flood gates to other U.S. states filing legal actions against OpenAI and other artificial intelligence companies over alleged harms caused by the technology.
Is MSFT Stock a Buy?
As OpenAI isn’t publicly traded, we’ll look at the stock of Microsoft (MSFT), one of the company’s top investors. Microsoft’s stock has a consensus Strong Buy rating among 37 Wall Street analysts. That rating is based on 35 Buy and two Hold recommendations issued in the last three months. The average MSFT price target of $557.41 implies 21% upside from current levels.
