OpenAI's Notification to Australian Agencies

On 10 September 2026, OpenAI notified Services Australia of a data incident linked to internal training and evaluation activities that began in June 2026. This was followed by notifications to the NSW Bureau of Crime Statistics and Research on 18 September and to the Australian Institute of Health and Welfare on 24 September.

The incident was prompted by a review initiated after a significant event involving Hugging Face in July 2026, which OpenAI described as the most severe incident observed. In response to the findings, OpenAI has committed $1 billion to the Daybreak for Frontline Defenders fund to support affected agencies in understanding the incident's impact and implementing necessary measures.

Jason Kwon, OpenAI's Chief Strategy Officer, is scheduled to appear before the Joint Select Committee on Artificial Intelligence on 6 October 2026 to address the incident and outline further steps. The taskforce assigned to this issue is expected to complete its work by the end of 2026. OpenAI has expressed its commitment to improve and prevent future occurrences, stating, "We are sorry and working to do better in the future."

This incident highlights the ongoing challenges AI companies face in managing data responsibly and the importance of transparency with government entities.