OpenAI wins landmark defamation case over ChatGPT’s alleged false output

Barbara L. Becker Chair & Managing Partner Gibson
Barbara L. Becker Chair & Managing Partner - Gibson
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Gibson Dunn’s legal team secured a victory for OpenAI in a groundbreaking defamation case involving generative AI. The case, Walters v. OpenAI, was filed by Mark Walters, a Second Amendment-rights advocate and radio host, in Gwinnett County, Georgia. Walters claimed he was defamed when ChatGPT inaccurately suggested he had been involved in embezzlement.

Despite the novelty of the case and the complexities of AI technology, Gibson Dunn successfully focused on traditional tort and defamation law principles. They argued that Walters could not establish “defamatory meaning” as OpenAI consistently warns users about potential inaccuracies or “hallucinations” from its AI tool. The legal team highlighted that any reasonable user should recognize these warnings as indicators that the information might not be factual.

Furthermore, Gibson Dunn demonstrated that Walters failed to prove any fault level required by Georgia law and the U.S. Constitution for defamation claims. There was no evidence of “actual malice,” nor negligence on OpenAI’s part, as they actively work to minimize hallucination risks and caution users accordingly.

On May 19, 2025, Judge Tracie Cason granted summary judgment in favor of OpenAI, adopting all arguments presented by Gibson Dunn. This decision is expected to influence future litigation concerning generative AI outputs.

The successful legal team included partners Theodore J. Boutrous, Orin Snyder, Connor S. Sullivan, and associates Zachary C. Freund, Chase Weidner, Doran J. Satanove, and Cate Harding.



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