OpenAI stated that this move helps organizations comply with local data sovereignty requirements, addressing the needs of European clients.

This new option is particularly appealing to companies and educational institutions that utilize OpenAI's chatbot services.

According to digital law expert Yael Cohen-Hadria, European clients may prefer companies that have a local presence and legal responsibilities.

Developers using OpenAI's models for their own AI applications will also have the option to process user queries within the EU, enhancing compliance.

OpenAI is actively expanding its physical offices in Europe, with existing locations in Paris, Brussels, and Dublin, and plans to open its first office in Munich later in 2025.

This announcement comes at a time when US-based AI developers are heavily investing in infrastructure to support large-scale AI applications.

On February 6, 2025, OpenAI announced a significant policy change allowing European customers to store and process data from chatbot conversations within the EU.

The decision reflects the strong influence of EU regulations on how digital platforms manage data originating from the bloc.

In line with the General Data Protection Regulation (GDPR), organizations must ensure the same level of data protection when storing data outside the EU.

Despite the benefits, tech companies have criticized EU regulations on personal data and AI, viewing them as significant obstacles to business.

Experts believe that OpenAI's new policy provides clients with a viable solution to navigate the complex compliance challenges posed by EU regulations.

The establishment of the Munich office will further solidify OpenAI's presence in the European market.