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Alabama AG Launches Investigation into OpenAI for AI Data Breach

Alabama Attorney General Steve Marshall issued a subpoena demanding OpenAI, led by Sam Altman, respond to an investigation into whether the company's lack of oversight in a July hack of AI company Hugging Face violated Alabama's Deceptive Trade Practices Act and other consumer protection laws. The investigation follows a multi-state coalition letter demanding OpenAI cease and desist from tests that led to the hacking. Marshall stated, 'This AI lab leak showed that Alabamians' and Americans' worst fears about artificial intelligence are not just theoretical.'

read2 min views1 publishedSep 1, 2026
Alabama AG Launches Investigation into OpenAI for AI Data Breach
Image: source

For Immediate Release: August 24, 2026

For press inquiries only, contact:

Amanda Priest (334) 322-5694

William Califf (334) 604-3230

**(Montgomery, Ala) **– Alabama Attorney General Steve Marshall announced the issuance of a subpoena demanding that OpenAI, led by Sam Altman, respond to an investigation into the company’s complete lack of oversight and adequate safeguards in the hacking of Hugging Face, another artificial intelligence (AI) company. The investigation comes after Alabama was part of a multi-state coalition letter sent earlier in the month to OpenAI demanding transparency and accountability.

In July, OpenAI unleashed an experimental artificial intelligence model that, without reasonable controls or oversight, gained unauthorized access to several computer networks, which culminated in a days-long hack on another AI company. Alabama’s subsequent investigation seeks to address whether OpenAI’s inability or unwillingness to ensure the safety of its products violated Alabama’s consumer protection laws and poses an ongoing risk of substantial harm to the citizens of the state.

“This AI lab leak showed that Alabamians’ and Americans’ worst fears about artificial intelligence are not just theoretical. Our investigation seeks to uncover the facts and address hard truths about the threats companies and consumers are facing from rogue AI,” Attorney General Steve Marshall said. “Ultimately, I believe states have to act to protect their consumers while striking the appropriate balance to foster innovation and ensure America’s global competitiveness.”

One of the key points of the multi-state coalition’s letter was a demand that OpenAI immediately cease and desist from all tests that led to this hacking unless and until OpenAI shows that it can conduct such activities in a controlled and responsible way.

The investigation now seeks to discover whether OpenAI violated Alabama’s Deceptive Trade Practices Act and other consumer protection laws. The Attorney General’s subpoena requests that OpenAI respond with all potentially relevant documents, data, and information.

Read the Attorney General’s subpoena here.

Read the coalition letter here.

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