OpenAI Beats Defamation Lawsuit Over ChatGPT Hallucination

May 19, 2025, 11:43 PM UTC

OpenAI LLC’s generative AI chatbot didn’t defame a gun rights radio host, a Georgia state court ruled Monday, in what appears to be the first ever lawsuit alleging a chatbot produced defamatory content.

OpenAI didn’t defame Mark Walters when its AI chatbot, ChatGPT, produced to a journalist a summary of a real legal case that incorrectly stated that Walters had been accused of embezzling money, Judge Tracie Cason of the Gwinnett Superior Court found.

Walters, who sued OpenAI in 2023, failed to show that the journalist who saw the “hallucinated” output believed it was true, or that OpenAI had acted ...

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