OpenAI is facing a new obstacle in its efforts to continue operating in the European Union, as German authorities have initiated an investigation into the company’s privacy practices and compliance with the General Data Protection Regulation (GDPR).
The inquiry focuses on whether OpenAI has conducted a data protection impact assessment, effectively managing data protection risks, and seeking information on GDPR-related issues.
This development is not surprising, as German watchdog groups have previously called for a closer scrutiny of OpenAI. The company’s recent release of the GPT-4 model has only increased regulatory scrutiny, with Italy already imposing a ban on OpenAI products.
The core concern among European regulators is the training data used to build OpenAI’s artificial intelligence models, which individuals cannot opt out of and correct if errors are made. This presents a challenge for OpenAI users, particularly those paying for access to GPT API for personal or business purposes.
If a ban is imposed, it could impact cryptocurrency traders and analysts who use OpenAI bots, including exchanges, news sites, and blockchain firms, and force them to conduct their operations outside the EU.