OpenAI has established a European subsidiary to mitigate regulatory risk on data in the EU
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OpenAI, creator of chatbot ChatGPT, has reorganised its structure in Europe to minimise the risks associated with data privacy regulation. This is evidenced by letters to users and an updated privacy policy.
Here's What We Know
For residents of the EEA and Switzerland, OpenAI's subsidiary in Ireland is now the controller of personal data. This will bring services such as ChatGPT under the jurisdiction of the local data protection regulator and simplify oversight.
OpenAI's technology has previously been the subject of investigations in Italy and Poland for possible GDPR violations. The company is expected to seek "principal establishment" status in Ireland. This will limit the ability of other European regulators to take unilateral action against its services.
The new terms of use will start to apply from February 15, 2024.
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Source: TechCrunch