• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Digital News Updates
  • Home
  • News
  • Politics
  • Business

Knudsen Launches Investigation Into OpenAI

September 7, 2026

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.

By: Montana Newsroom News Wire

Filed Under: Featured, Home Featured, News

Related Articles:

  • Nearly 70 Million Kids Get Trump Accounts
  • Washington Man Charged With Attempting to Aid Houthis
  • Clear Ideological Divide Emerges in Montana Supreme Court Race
  • NCAA sues DeWine over eligibility executive order
  • Union Pacific Fights Release of CEO’s Rate-Hike Threat
  • Poll: Majority of voters concerned about socialists running for office

Primary Sidebar

— Advertisement —

Digital News Updates Logo

Recent News Posts

  • A New Y2K Moment: What the Threat of Frontier AI Tells Us about Enterprise Modernization
  • Montana Secures $4.8 Million to Expand Workforce Training in High-Demand Industries
  • UM College of Business Earns Top National Ranking
  • Flathead Valley Community College Approves Contract for New President

Recent Politics Posts

  • Liberal Groups Criticize Idaho Voting Laws Over Registration Requirements
  • Poll: Inflation tops voter concerns, national debt near the bottom
  • Billings City Council Votes to Sell Lampman Park for $834,000 Housing Development
  • White House Report Estimates $49 Trillion Cost of Democratic Socialist Policies

Recent Business Posts

  • How much is the NFL worth? Inside America’s most valuable sports league
  • How American defense companies can stay competitive in today’s global environment
  • Financial officers warn rating agencies about using ESG in state credit ratings
  • Cboe Names Catherine Grover Chief Human Resources Officer

Copyright © 2026 Digital News Updates, All Rights Reserved.