OpenAI Wins Defamation Case Over ChatGPT’s Invented Allegations

A Georgia judge has dismissed a defamation lawsuit against OpenAI over false statements generated by ChatGPT, ruling the company did not act with actual malice.

Key points:

  • A Georgia judge dismissed a lawsuit against OpenAI over false information generated by ChatGPT.
  • The plaintiff, radio host Mark Walters, failed to prove actual malice or negligence.
  • The ruling marks an early legal victory for AI developers facing liability claims over model hallucinations.

OpenAI has won a closely watched lawsuit in Georgia that tested the legal risks posed by artificial intelligence-generated misinformation. Judge Tracie Cason of Gwinnett County Superior Court dismissed radio host Mark Walters’ defamation case, ruling that Walters had not shown OpenAI acted with negligence or “actual malice” when its ChatGPT tool generated false statements about him in response to a third-party query.

Walters, a pro-gun rights commentator, filed suit in 2023 after a reporter from AmmoLand.com asked ChatGPT about gun-related litigation and received a response falsely describing Walters as a defendant in a fictional sexual harassment case. The reporter later determined the case was entirely fabricated and did not publish the claims. Nonetheless, Walters alleged that ChatGPT’s response was “obviously defamatory” and accused OpenAI of knowingly distributing falsehoods through its product.

In her opinion, Judge Cason rejected that argument, emphasizing that OpenAI had issued extensive disclaimers about ChatGPT’s limitations and made “industry-leading efforts” to reduce hallucinations. “OpenAI's extensive warnings to users that errors of this kind could occur negate any possibility that a jury could find OpenAI acted with actual malice here,” the judge wrote, according to Reuters.

The ruling represents a significant early victory for generative AI developers, as courts begin to address the liability landscape for AI-generated falsehoods. The legal standard for defamation requires that the publisher of the statement acted either negligently or with actual malice—something Walters failed to prove, the court concluded.

OpenAI, represented by Theodore Boutrous Jr. of Gibson Dunn and Matthew Macdonald of Wilson Sonsini, welcomed the court’s decision. “We appreciate the judge's careful decision and its findings about our efforts to responsibly educate users and improve our models,” the company said in a statement.

Walters’ attorney, John Monroe, said Monday that his team was reviewing the court’s ruling. The case, Walters v. OpenAI LLC, No. 23-A-04860-2, was heard in Gwinnett County Superior Court in Georgia.

Customer Stories

See how leading enterprise in-house teams have scaled smarter with Legal.io's high-caliber flex talent.

More from Legal.io


Tesla Faces Legal Crossroads in Upcoming Autopilot Fatality Trials
Tesla Faces Legal Crossroads in Upcoming Autopilot Fatality Trials

Tesla prepares for its first trials involving fatalities allegedly caused by its Autopilot system. The outcomes could have significant implications for the company, Elon Musk, and the broader landscape of autonomous driving technologies.

Aug 31, 2023
Read More
Attorney Fees for Temporary Visas and Green Cards
Attorney Fees for Temporary Visas and Green Cards

The field of immigration law lends itself well to predictable pricing arrangements. This guide provides an overview of attorney fees for temporary visas and green cards.

Jul 20, 2020
Read More
Community Perspectives: What is your experience working remotely in-house?
Community Perspectives: What is your experience working remotely in-house?

In-house legal professionals discuss their experience working remotely.

Sep 01, 2022
Read More
Vice President Harris Announces New U.S. Initiatives on AI Use
Vice President Harris Announces New U.S. Initiatives on AI Use

With these initiatives, the current administration is voicing its commitment to ensuring that AI innovation does not come at the expense of public rights and safety.

Nov 13, 2023
Read More
Ready to hire?

Schedule a free consultation to discuss your hiring needs.

Free 15-min consultation
Legal.io Platform
5 star reviews
Hiring made smarter

Easy-to-use platform for hiring legal talent, managing spend, and optimizing your panel — plus an average savings of 50%.

Need Immediate Help?

Submit a hiring request and let our experts handle the entire process for you.