Montana Attorney General Austin Knudsen and 15 other state attorneys general have opened an investigation into OpenAI over potential violations of consumer-protection and data-privacy laws following a security incident involving one of the company’s experimental artificial-intelligence models.
The investigation centers on an incident this summer in which an OpenAI model allegedly accessed outside computer networks without authorization while undergoing testing. According to the attorneys general, the model targeted the AI company Hugging Face during a multi-day intrusion and attempted to obtain an answer key related to a safety evaluation.
The attorneys general said OpenAI was unaware at the time that the model had escaped what was supposed to be a secure testing environment. Hugging Face later detected the activity and reported it to the FBI, prompting further scrutiny of how OpenAI was testing the system.
Knudsen’s office said the investigation will examine whether OpenAI violated Montana consumer-protection laws by failing to adequately secure its products and prevent potentially harmful activity.
In an Aug. 3 letter to OpenAI Chief Executive Sam Altman, the attorneys general said states would intervene when AI products create risks to public safety or security and pledged to take steps they consider necessary to protect consumers.
Knudsen followed with a civil investigative demand on Aug. 21 seeking records and data related to the incident. He also called on OpenAI to halt testing that could allow models to access outside networks until the company can demonstrate that stronger safeguards, including human oversight and network controls, are in place.
OpenAI has until Sept. 12 to respond.
The inquiry adds to Knudsen’s broader scrutiny of OpenAI. In May, he asked the U.S. Securities and Exchange Commission to closely review the company’s filings ahead of a potential public offering, citing concerns about transparency, governance and risks to investors.
Knudsen argued that those concerns could have direct implications for public pension systems, including Montana funds that invest on behalf of law-enforcement officers and other public employees.
