OpenAI announced that it will enable specific European customers to store and process data from chatbot interactions within the European Union instead of using its infrastructure in the United States or other locations.
This move highlights the influence of EU regulations on major digital platforms, including artificial intelligence developers, regarding their use of data originating from the bloc.
OpenAI announced that companies and educational institutions paying for their employees or students to use its chatbots will have the option to store interaction data in Europe.
Developers building AI-powered apps on the company’s models can choose to have users’ queries processed within the EU.
This initiative arises as AI developers, primarily located in the United States, including OpenAI, Meta, Google, and Microsoft, compete to invest billions in data center infrastructure essential for the widespread deployment of systems like chatbots and image generators.
Tech giants frequently criticize Europe’s extensive regulations on personal data and AI, viewing them as obstacles to business growth.
In recent years, European regulators have fined Meta billions of euros for breaches of data protection and antitrust regulations.
A common challenge is the General Data Protection Regulation (GDPR), requiring organizations to maintain the same level of data protection for information stored outside the EU as mandated by EU law.
Yael Cohen-Hadria, a digital law expert at EY consultancy, suggests that OpenAI’s latest policy is designed to help clients navigate compliance challenges more smoothly.
Cohen-Hadria told AFP that European customers “will favor companies in Europe, even if their origins are international, as long as they have the infrastructure, offices, and legal accountability established here.”
She added that the move could also position OpenAI to bid for public-sector contracts in the EU that require strict data protection guarantees.
OpenAI has focused on expanding its global presence by establishing offices in key European cities, including Paris, Brussels, and Dublin. Paris is a central hub for EU data protection, attracting numerous US tech companies to establish a presence there.
On Thursday, German authorities revealed that OpenAI is set to establish its inaugural office in Munich.
The German economic newspaper Handelsblatt reported that the new office is set to open later this year.
