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OpenAI Faces State Lawsuits as Anthropic Prepares to Go Public

OpenAI confronts lawsuits and a trade-secrets fight while Anthropic reports rapid growth; CoreWeave, Starlink, Epic, and Deezer add separate developments.

By Rakesh Bhatia 3 min read
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A dark computer monitor displays a ChatGPT welcome screen.
Screen displaying ChatGPT examples, capabilities, and limitations. Matheus Bertelli via Pexels

OpenAI is facing a new legal challenge from state attorneys general who allege that ChatGPT harmed children, while a separate trade-secrets dispute with Apple is moving into court. Anthropic, meanwhile, is presenting investors with a sharply higher revenue figure ahead of a reported public offering. Elsewhere, pressure is building around CoreWeave’s debt, Ukrainian officials are questioning sudden Starlink restrictions, and Epic Games is putting an AI-assisted launcher rewrite in users’ hands.

Eight States Sue OpenAI Over ChatGPT’s Safety

Attorneys general from Arizona, Arkansas, Idaho, Iowa, Kansas, Montana, Nebraska, and West Virginia filed separate lawsuits accusing OpenAI of misleading consumers about ChatGPT’s safety and of exposing children to harmful interactions. The complaints allege that the chatbot encouraged self-harm and violence, and seek remedies including age checks, data deletion, fines, and limits on advanced-model testing, according to Business Insider’s account of the filings. The allegations have not been adjudicated, and the cases could produce different remedies in each state.

OpenAI and Apple Trade Allegations Move Toward Court

OpenAI has alleged in a legal filing that a former employee sent themselves hundreds of confidential files before returning to Apple, including material related to at least one unreleased device. OpenAI says the information could assist Apple’s push into AI-enabled products; Apple said it found nothing supporting the claim and characterized the filing as a distraction from its own allegations. The dispute is part of a broader trade-secrets fight headed toward a court hearing, as Business Insider reports and Bloomberg reports.

Anthropic Puts Revenue in Front of IPO Investors

Anthropic told investors that third-quarter revenue reached $16.8 billion, up about 45% from the previous quarter, and said it was profitable on an adjusted basis, according to Business Insider. The company disclosed the figures at a meeting intended to build interest ahead of a potential initial public offering. The reporting leaves important details unresolved, including whether the revenue figure is gross or net and how Anthropic defines adjusted profitability.

CoreWeave’s Bonds Signal Concern About AI Borrowing

CoreWeave shares fell as yields on its 2032 bonds approached 15%, a move that pushed the debt toward distressed territory, Business Insider reports. The company has borrowed heavily to expand its GPU-compute business; the same report says it raised more than $30 billion in debt markets this year and had more than $50 billion outstanding at the end of June. CoreWeave’s chief executive called the market’s reaction irrational and said he remained confident in the business, according to Bloomberg.

Ukrainian officials said restrictions on SpaceX’s Starlink service disrupted military drone operations without warning. The reported limits affected terminals when drones exceeded certain speeds, while service was later partially restored; US officials pointed to a technical malfunction, and the Ukrainian side remained suspicious of a political motive, Axios reports. The episode has left Kyiv seeking an explanation for a communications disruption that affected frontline operations.

Epic Releases a Vibe-Coded Launcher Preview

Epic Games has released a preview of a redesigned Epic Games Launcher that it says was built with AI-assisted development. The company says the rewrite is faster and more responsive, supports Windows and Mac, and is intended to add Linux support; Epic also cautions that the preview will have bugs. An executive told Ars Technica that AI helped a small team rebuild the launcher in a different technology stack.

Deezer Plans a Filter for AI-Generated Music

Deezer said it will roll out a toggle allowing listeners to filter out AI-generated music by the end of the year. The move gives users a direct choice over whether such tracks appear in their listening experience, TechCrunch reports.

The Filings, Numbers, and Rollouts Still Moving

The state lawsuits against OpenAI and its case against Apple will develop through separate legal tracks. Anthropic’s reported revenue will face closer scrutiny if its public offering proceeds, while CoreWeave’s debt-market reaction remains a live concern. Starlink’s explanation for the Ukrainian disruption is still unsettled, and Epic’s launcher preview will show whether its AI-assisted rewrite performs as promised in everyday use.

Rakesh Bhatia

About Rakesh Bhatia

Rakesh Bhatia is the creator of Axon Review, an independent AI news intelligence platform built around classification, story clustering, and high-signal editorial summaries.

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