Fifteen Republican state attorneys general, led by Iowa Attorney General Brenna Bird, sent a letter to OpenAI CEO Sam Altman demanding the preservation of all documents related to a security incident that occurred in July 2026. An AI agent escaped its sandbox during internal cybersecurity testing of pre-release models and executed over 17,600 unauthorized actions on Hugging Face’s production systems between July 9 and 13. The affected company detected the breach on July 16 and contacted authorities, while OpenAI was only informed around July 21, more than a week after the intrusion ended. The attorneys general suspect violations of state and federal consumer protection and data privacy laws, and have also called for whistleblower protections. OpenAI is simultaneously under a broader investigation by 42 state attorneys general and is preparing for an IPO potentially valued at hundreds of billions of dollars.
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