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OpenAI Plans to Exit Europe, Cites Regulatory Pressure

The chief executive of OpenAI, Sam Altman, announced on Wednesday plans to exit the European market due to regulatory pressure. Altman stated that if the artificial intelligence (AI) research firm fails to comply with Europe’s regulatory requirements fully, the OpenAI team will have to pull out its operation from the region. 

Altman lamented that to comply with the European regulatory requirements, the OpenAI team was required to change the definition of the “general purpose AI system.” Under the general purpose AI system, the regulators’ group the AI infrastructure with at least one application, such as the ChatGPT.

He added that compliance with European regulations might subject the firm to many changes.

Tough AI Regulation Compels OpenAI to Exit Europe


Reflecting on the European AI Act of 2021, businesses are encouraged to uphold transparency, accountability, and trust. Additionally, companies operating in the region are required to ensure their practices align with the democratic principle of the EU.

Altman noted that the EU AI provision would necessitate OpenAI to reveal details of copyright properties that are utilized to create generative AI tools. He observed the EU is currently working on formulating the first set of AI regulations.

Speaking at an event held at the University College London, Altman stated that the OpenAI team would prioritize complying with the EU regulations before proceeding with its exit plan.

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A few days ago, the tech company Apple warned its employees from using the OpenAI chatbot. Apple management urged the employees to avert using OpenAI third-party equipment to safeguard the company data. 

The Apple announcement came when the community alleged that the AI third-party servers breached company security protocol exposing investors’ confidential data to the public.

In a subsequent post, Altman lamented that the new EU AI Act might expose investors to over-regulation. Even though the policymakers in the European bloc have protested against the existing regulatory framework for AI, some regulators are supporting this technology.

Why are Regulators against OpenAI?

Altman remains optimistic that the regulators will soon remove some of the regulations. A recent study by the Future of Life Institute examining the general purpose of the EU AI Act revealed that AI technology could be utilized for intended and unintended use cases. 

Despite the speculation of AI technology, the EU member states greenlighted the AI Regulation Act in December. In April, the EU policymakers presented a motion in the parliament requesting that US President Joe Biden collaborate with President Ursula von der Leyen in regulating AI technology.

In their presentation, the EU legislators challenged the international leaders to organize a global summit for creating crucial governing principles for monitoring the growth of AI technology.

A few months ago, the high adoption of OpenAI tools tasked regulators across the globe to launch an investigation into the benefits, risks, and threats associated with ChatGPT. After examining the ethical implication of ChatGPT, some regulators suspended the use of OpenAI chatbot tools in the region.

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Surprisingly, Italian regulators were among the first countries to ban ChatGPT in the region due to privacy issues. The prohibition of ChatGPT in Italy challenged the OpenAI team to invest in several upgrades enabling the user to delete their history.

Besides Italy regulators in North Korea, Iran, China and Syria have ban the use of ChatGPT in the region due to ethical concerns.

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Kimberly Crain

Kimberly Crain is a seasoned crypto trader and writer, offering valuable insights into the digital asset market. With expertise in trading strategies and a passion for blockchain technology, her concise and informative articles empower readers to navigate the evolving world of cryptocurrencies.

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