The company says it has addressed the issue and it “did not provide anyone access to information they weren’t already authorised to see”.
But the head of the US delegation at the AI Impact Summit in Delhi says: “We totally reject global governance of AI.”
OpenAI said the account’s activity did not meet the threshold to flag it to authorities when it was identified.
Deepfakes showing grim taxpayer-funded waterparks have gone viral and drawn some racist responses.
As top games such as GTA 6 are speculated to cost $100 (£74), some developers are deliberately pricing lower.
Ofcom’s £1.35m fine on 8579 LLC is the largest it has levied under the Online Safety Act so far.
The executive shake-up has sparked online debate about new boss Asha Sharma’s gaming credentials.
The UK’s data watchdog said the failings meant children could be exposed to harmful material online.
His speech follows years of the firm focusing away from China as it moved its headquarters to Singapore.