OpenAI has launched data residency in Europe on February 6, 2025, enabling organizations to comply with local data sovereignty requirements while using its AI products. This move applies to ChatGPT Enterprise, ChatGPT Edu, and the API Platform, allowing customer data to be stored and processed within Europe. The initiative addresses privacy and compliance concerns, particularly in light of stringent European data protection laws such as GDPR. OpenAI clarified that data processed in Europe will not be retained, with zero data retention for eligible endpoints, and existing projects cannot be retrofitted for European data residency. The launch follows scrutiny from European regulators, including a €15 million fine from Italy's data protection authority for alleged non-compliance. The company aims to strengthen its position in the European market amidst competition from local and international AI firms.