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.
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