OpenAI Hit With Multi-State AG Subpoena Over ChatGPT User Data
A coalition of U.S. state attorneys general has launched a coordinated investigation into OpenAI, issuing a subpoena focused on how ChatGPT collects and handles data from vulnerable user groups, including minors and elderly users. The probe arrives as OpenAI is preparing for a public offering at a valuation approaching one trillion dollars. Separately, the company is evaluating cuts to its token pricing — the per-unit cost developers pay to use its AI models.
A multi-state legal probe directly threatens OpenAI's IPO timeline and valuation, creating overhang for the entire AI software sector. Companies like Microsoft, which has staked billions on its OpenAI partnership, face indirect reputational and regulatory risk. Investors in AI-adjacent public equities — particularly pure-play AI infrastructure and software names — should expect increased volatility as the regulatory picture becomes clearer.
Watch for: (1) Any scheduled state AG press conference or filing deadline as the investigation progresses — no specific date confirmed yet. (2) OpenAI's S-1 IPO filing, expected in 2025, which will need to disclose this investigation. (3) Any Congressional or FTC hearings on children's online privacy, which could broaden the probe.
- OpenAI targeted by multi-state investigation over ChatGPT user data · Le Figaro Economie
- OpenAI subpoenaed in multistate attorney general probe · Investing.com
- OpenAI under investigation by coalition of state attorneys general, WSJ reports · Investing.com
- OpenAI considers major price cuts amid competition with Anthropic · The Straits Times Business
- Elon Musk is a trillionaire now. Is that bad for the economy? · The Guardian Business
- OpenAI wins dismissal of trade secret lawsuit by Elon Musk's xAI · The Straits Times Business
- OpenAI and Oracle building major U.S. data center in New Mexico amid water concerns · Fortune
- OpenAI spending hit $34bn last year ahead of planned IPO · Financial Times
- OpenAI's spending surges to $34B ahead of public listing - report · Seeking Alpha
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