A coalition of state attorneys general has opened an investigation into OpenAI.

The company was served with a subpoena from New York’s attorney general on Friday, according to The Wall Street Journal. That subpoena sought documents related to a broad range of topics including the company’s advertising, user engagement and retention, model sycophancy, handling of consumer data and health data, and treatment of minors and seniors.

“AI is a new and powerful technology, and we work every day to safely bring its benefits to people in a responsible way,” an OpenAI spokesperson said in a statement. “We take the concerns raised by state attorneys general seriously and intend to engage constructively with their offices.”

The spokesperson also said, “Today’s ChatGPT includes a more protective experience for minors and people experiencing difficult situations, with safeguards that direct them to real-world resources and trusted human contacts. We believe kids should be treated like kids, which is why we built age prediction, released parental tools to guide their children’s use of AI, and disallowed advertising that targets kids.”

The company did not specify which states are involved in the investigation or share more details about what information was requested. TechCrunch has also reached out to New York attorney general’s office for confirmation.

OpenAI recently defeated its co-founder Elon Musk in a high-profile trial, after Musk accused the company of violating its founding agreement. (Musk’s lead attorney said he will appeal the decision.)

However, OpenAI still faces lawsuits over everything from alleged copyright infringement to ChatGPT’s alleged role in user suicides. Earlier this month, Florida Attorney General James Uthmeier sued OpenAI and its CEO Sam Altman, claiming that OpenAI and Altman “ignored internal and external safety warnings, put children at great risk, and allowed a dangerous product to reach millions of Floridians.”

Altman recently apologized to the community of Tumbler Ridge, Canada after a mass shooting; he acknowledged that OpenAI failed to alert law enforcement after the company flagged and banned the suspected shooter’s ChatGPT account.

The company announced this week that it has filed confidentially to go public.

This post has been updated with a statement from an OpenAI spokesperson.

Prometheus, the physical AI startup co-founded by Jeff Bezos and Vik Bajaj, the former co-founder of Verily, Google’s life sciences unit, announced it raised $12 billion at a $41 billion valuation.

The new funds came from Bezos himself, as well as from JPMorgan Chase, Goldman Sachs, and BlackRock, among others.

This is the second fundraise round for Prometheus, which launched late last year with an initial raise of $6.2 billion, according to CNBC.

Prometheus is building what it calls an “artificial general engineer” — software capable of automating the design and manufacturing of complex physical systems, from jet engines to drug compounds.

The ambition is sweeping: replace large swaths of engineering work with AI. Although the startup will automate many aspects of an engineer’s job, Bezos told CNBC that the productivity gains AI delivers will lead to what he calls “labor scarcity” — his term for a world where demand for human workers outpaces supply.

That puts him at odds with a number of prominent voices in tech. While some AI leaders predict widespread job losses, Bezos sees it differently.

“Significant productivity in the economy is going to raise the standard of living,” he said. “People who today have two-earner households, they’ll become one-earner households. Maybe some people who are working overtime will stop working overtime.”

The company, which currently has 150 employees across offices in San Francisco, London, and Zurich, is keeping the specifics of what it has already built under wraps.

Bezos indicated that a large portion of the capital will go toward the company’s large compute needs.

Bezos knows something about labor at scale. Amazon — where he serves as executive chairman and is the largest individual shareholder — employs more than 1.5 million people worldwide and over the past year, under CEO Andy Jassy, has laid off tens of thousands of people as the company has accelerated its own automation push.

At $41 billion, Prometheus is one of the most richly valued AI startups ever funded, and one of the largest single bets on the physical AI sector. But it isn’t the only company attracting massive investor interest. In recent months, venture capitalists have increasingly poured capital into physical AI, a booming sector that investors and founders argue is inherently more defensible than pure software — because the physical world creates moats that code alone cannot.