Paxton sues OpenAI as report details his $600,000 investment in fraud-convicted builder's firm
Photo: The New RepublicTexas Attorney General Ken Paxton, the Republican nominee for U.S. Senate, sued OpenAI on Friday in Collin County district court, alleging the company violated the Texas Deceptive Trade Practices Act by lying about risks to users. The suit seeks an injunction requiring OpenAI to block minors from ChatGPT and other products, third-party approval of new models by a court-appointed evaluator, and civil penalties of $10,000 per violation. Paxton's office said the harms stem from the company's quest to win the AI arms race. Separately, a report based on previously unreleased records from his 2023 impeachment investigation says Paxton and his wife, state Sen. Angela Paxton, put $600,000, through what was presented as a blind trust, into a construction materials business run by Scott Sherman, who pleaded guilty to mortgage fraud in 2014. Sherman's companies reportedly sent the Paxtons thousands of dollars while they faced mounting tax debts. Paxton was acquitted after the legislature's investigation. He is in a tight race with Democrat James Talarico.
The left-leaning New Republic leads with the Sherman investment, saying the trust did not shield the Paxtons' business activity. It contrasts this with Paxton's statement that Texas fights fraud head-on, and quotes ethics lawyer Richard Painter. It does not mention the OpenAI suit in the excerpt. The right-leaning Washington Examiner leads with the lawsuit, featuring Paxton's claims about lost critical thinking and addicted minors and his office's statement. It suggests the suit could appeal to voters skeptical of AI, and does not mention the investment report. Both note the Senate race against Talarico. Alternative and independent outlets had not reported this story at the time of writing, while left-leaning and right-leaning outlets had, focusing on different Paxton stories.
How the sides differ Left sources emphasize Paxton's financial ties to a convicted fraudster; right sources stress his OpenAI lawsuit and its possible voter appeal; alternative sources have not covered it.
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The New Republic leads with the $600,000 investment in Scott Sherman's business, citing Texas Tribune reporting, impeachment records and ethics expert Richard Painter, and contrasts it with Paxton's public anti-fraud statements.
Not covering this story. None of the alternative or independent outlets Crosswire tracks has reported it yet. What one side leaves out can be as telling as what the others report.
The Washington Examiner leads with Paxton's OpenAI lawsuit, quoting his office and his claims about harms to users, and frames it as a possible appeal to AI-skeptical voters in the Senate race.