Short answer: this week, Texas sued OpenAI and its CEO Sam Altman, claiming ChatGPT was sold as safe while its risks to kids and adults were hidden. S&P Global Ratings counted 146 U.S. data center projects that have been delayed or canceled, mostly because of local pushback. And two big employers, Kroger and Barclays, put AI at the center of plans to shrink their office workforces.
Key takeaways
- Texas Attorney General Ken Paxton sued OpenAI and Sam Altman on October 23 in Collin County. The case asks a court to bar minors from ChatGPT and require an independent evaluator to approve new models. These are allegations, not findings.
- OpenAI told the Texas Tribune it has worked with experts to add safeguards and wants rules that cover the whole AI industry.
- S&P Global Ratings tracked 146 delayed or canceled U.S. data center projects. About three quarters were tied to local opposition.
- Kroger plans to cut about 3,000 corporate jobs over three years and told investors on October 20 it will use AI to simplify operations. Barclays is cutting about 5,000 jobs in a cost drive linked to AI.
- Kroger’s plan covers corporate roles, and about 60% of Barclays’ cuts fall in support functions. Both are desk jobs, the work AI tools handle best today.
1. Why is Texas suing OpenAI and Sam Altman?
What happened: On Friday, October 23, Texas Attorney General Ken Paxton filed suit in Collin County district court against OpenAI and Sam Altman personally. According to Courthouse News, the case rests mainly on the Texas Deceptive Trade Practices Act. It also claims OpenAI broke the SCOPE Act, a 2023 Texas law on age verification and parental consent for online services. The state says OpenAI released ChatGPT without adequate parental controls, age checks or safety testing, and cites at least eight cases of people who committed violent acts after consulting ChatGPT.
The requested remedy is unusually broad. The Texas Tribune reports the state wants an injunction that would bar minors from the product and require a court-appointed evaluator to approve new models. Paxton said in a press release: “I will fight to protect Texans from the harms of AI and ensure that powerful technology companies are not above the law.” Jonathan Stone, chief of the state’s Consumer Protection Division, told Courthouse News: “At very best this design feature is reckless, and at worst it is willful.”
Why it matters: Texas joins a growing line of states using old consumer protection laws against AI chatbots. Last week we covered eight states suing OpenAI on similar grounds. Texas goes further by naming the CEO and asking for court oversight of new AI models.
The other side: Nothing has been proven. An OpenAI spokesperson told the Texas Tribune the company has worked with experts to reduce risks and add safeguards, and said “Governments have an important role to play in setting robust safety standards for AI.” OpenAI says it wants to work with Texas and other states on policies for the whole industry. There is also a political backdrop. Paxton is the Republican nominee for U.S. Senate, and the election is November 3. The Texas Tribune reports that Elon Musk, an OpenAI co-founder turned rival, is the largest single donor to his campaign. None of that settles whether the claims are true, but it is context readers should have.
2. Are data center projects being canceled?
What happened: In a report released Friday, October 23, S&P Global Ratings tracked 146 U.S. data center projects that have been delayed or canceled, Bloomberg Law reported. About three quarters of them were tied to local pushback. The analysts looked at moratoriums in New York, Texas, Pennsylvania, Illinois and Arizona. They warned that grid limits, sustainability concerns and zoning changes “could increase downward pressure on the creditworthiness of data center projects.”
Washington is also moving. On October 14, Rep. Eugene Vindman of Virginia introduced the Make Data Centers Pay Act, Newsweek reported. It would require data centers using at least 20 megawatts to pay the added cost of their power supply so it is not shifted to homes and small businesses. Public opinion has shifted too.
| Share of Americans who say data centers are mostly bad for… | January 2026 | September 2026 |
|---|---|---|
| The environment | 39% | 54% |
| Home energy costs | 38% | 50% |
| Residents’ quality of life | 30% | 49% |
Why it matters: Power bills are the main reason people are pushing back. The Illinois Citizens Utility Board notes that the price PJM paid for grid capacity rose from $28.92 per megawatt day in 2024 to 2025 to $329.17 for 2026 to 2027, and PJM’s independent market monitor says data center demand is the primary reason. Capacity is the cost of keeping enough power plants ready for peak demand, and it flows into household bills. For background, see our guide to how much electricity and water AI data centers use.
The other side: A delayed project is not a dead project, and S&P described the effect on credit ratings so far as limited, according to TokenPost’s summary of the report. Many forecast data centers are never built anyway, which means some cancellations simply clear out speculative plans. And blocking a single local project will not fully protect your bill, the Citizens Utility Board points out, because grid costs are shared across whole regions. Rules on who pays matter more than any one moratorium. We covered that debate in Data Center Moratoriums 2026 and our look at Texas water reporting.
3. Are Kroger and Barclays cutting jobs because of AI?
What happened: Kroger plans to eliminate about 3,000 corporate positions over the next three years, roughly 37% of its approximately 8,200 corporate employees, according to Reuters reporting on an internal memo from CEO Greg Foran. At its investor day on October 20, Kroger said it expects to save costs by buying directly from suppliers and using technology and AI to simplify operations. Across the Atlantic, Barclays said with its third quarter results on October 22 that it will cut about 5,000 jobs, roughly one in 20 staff, in a cost drive linked to AI. Quartz reports about 60% of those cuts fall in support functions and that Barclays plans to spend about £600 million this year on the overhaul.
Why it matters: Unlike most layoffs we tracked earlier this month, these two employers explicitly connect AI to smaller headcounts. The pattern is consistent: the cuts land in corporate offices and back office support, the kind of desk work AI tools handle best. That fits what the Federal Reserve heard from businesses, which we covered in our Beige Book analysis: many firms are shrinking through attrition and slower hiring, not mass firings. For the bigger forecast picture, read our breakdown of Goldman’s displacement estimate.
The other side: AI is one reason among several. Kroger is also fighting Walmart and Aldi on price, and says the savings will help lower grocery prices and fund investment in store workers. Kroger’s three year timeline gives staff time to move into other roles, and the plan covers corporate jobs, not its store workforce. Announced cuts can also shrink or shift as plans change.
The TrustNoRobot Risk Check
| Question | Chatbots and kids | Data centers and bills | Corporate jobs |
|---|---|---|---|
| Exposure | Teens and vulnerable adults who use chatbots heavily. | Households in fast growing data center regions, especially PJM states and Texas. | Corporate, support and back office staff at large employers. |
| Evidence | Moderate. Serious claims from many states, not yet tested in court. | Strong on prices. Grid auction data and a ratings agency report. | Strong for these firms. Both tie AI to the cuts directly. |
| Speed | Fast. New state suits keep coming. | Building over years, with price spikes in tight seasons. | Gradual. Kroger spreads its cuts over three years. |
| Cushion | Parental controls exist; courts and attorneys general are now involved. | Bills in Congress and states aim to make data centers pay their own way. | Attrition, timelines and retraining soften the blow; severance varies. |
What this means for you
If you work in a corporate or support role at a large company, now is a good time to check your exposure. Look up your job in our Job Exposure Explorer and walk through our five step guide to measuring AI risk to your job. If you are a parent, review which chatbots your kids use and turn on the controls that exist today. Our settings guide shows where the privacy switches live. And with scammers using AI too, our guide to voice cloning scams covers two free habits that protect your family. On power bills, watch your state utility commission and ask how large customers will be charged for new grid costs.
What to watch next
- OpenAI’s formal answer to the Texas complaint, and whether more states follow.
- Local data center measures on the November 3 ballot.
- Challenger’s October job cuts report in early November, and how many cuts cite AI.
Frequently asked questions
Why did Texas sue OpenAI?
Texas claims OpenAI misled consumers about ChatGPT’s safety and lacked proper age checks and parental controls. The October 23, 2026 suit names CEO Sam Altman and asks a court to bar minors from ChatGPT.
Has OpenAI been found liable?
No. The Texas case is a civil lawsuit with allegations that have not been proven. OpenAI says it has added safeguards and supports industry wide safety standards.
How many data center projects have been delayed or canceled?
S&P Global Ratings tracked 146 delayed or canceled U.S. data center projects in an October 23, 2026 report, with about three quarters tied to local opposition.
Is Kroger cutting store jobs because of AI?
The announced plan covers about 3,000 corporate jobs over three years, not store roles. Kroger says AI and technology will help simplify operations and cut costs.
Sources
- Texas Tribune, “Texas Attorney General Ken Paxton sues ChatGPT-maker OpenAI” (Oct. 23, 2026)
- Courthouse News Service, “Texas attorney general sues OpenAI for lying about ChatGPT safety and safeguards” (Oct. 23, 2026)
- Texas Scorecard, “Paxton Sues OpenAI, CEO Sam Altman Over ChatGPT Safety” (Oct. 23, 2026)
- Bloomberg Law, “Data Centers Face Downgrade Risk Amid Local Pushback, S&P Says” (Oct. 23, 2026)
- TokenPost, “S&P Global Ratings Identifies 146 Delayed or Canceled U.S. Data Center Projects” (Oct. 24, 2026)
- Newsweek, “New Bill Would Force Data Centers to Pay Their Own Power Costs” (Oct. 22, 2026)
- Citizens Utility Board, “Data centers and your electric bills” (Oct. 19, 2026)
- FOX Business via KTVU, “Kroger plans to cut 3,000 corporate jobs as grocery giant expands AI use” (Oct. 13, 2026)
- Reuters via WMBD, “Kroger to focus on grocery business under new CEO as competition heats up” (Oct. 20, 2026)
- Quartz, “Barclays is cutting 5,000 jobs in AI push, Q3 2026 earnings show” (Oct. 22, 2026)
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