Eight U.S. states have filed lawsuits against OpenAI, alleging that the company prioritized profits over user safety and encouraged harmful behaviors among children. The attorneys general of Arkansas, Arizona, and Idaho are behind these legal actions, which follow a similar lawsuit filed by California earlier this year. The states are seeking operational changes to protect minors, as well as financial penalties and profit recovery. Market pricing suggests these legal challenges could delay OpenAI’s IPO plans, with the probability of an IPO by end of 2026 currently priced at 4.2%, and raise concerns about the company’s financial stability, with bankruptcy odds estimated at 7.5% for 2028.
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