New York Leads OpenAI Subpoena

OpenAI faces a high-stakes balancing act: it must turn over 1.1 billion monthly users into real revenue as it gears up for a possible fall IPO—all while fending off a sweeping multi-state subpoena led by New York’s attorney general. Regulators are demanding answers about ChatGPT’s safety, use of sensitive data, ad tactics, and how the company engages both kids and older adults. The timing is especially sharp: the investigation kicked off just days after OpenAI confidentially filed to go public, threatening to slow or reshape its monetization playbook if restrictions land on ads, targeting, or youth protections.

But here’s the catch: OpenAI desperately needs new revenue streams. It’s rolling out ads in Japan, hoping to beat regional trends and boost commerce referrals to local retailers just as its global market share dips below 50%. Yet, push too hard on ads and you risk losing ground to Google’s Gemini and Anthropic’s Claude, both climbing fast. Meanwhile, a key win—recruiting Google’s Noam Shazeer, the engineer behind the transformer breakthrough that powers modern AI—could help OpenAI streamline costs and accelerate new releases, just as last year’s audited expenses hit a hefty $34 billion.

Based on reporting from the Financial Times, Sensor Tower, Nikkei, NDTV, and the Wall Street Journal.

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