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Sam Altman Reverses Conditional Threat to Leave Europe Over AI Rules

In May 2023, Sam Altman made OpenAI’s continued European operations conditional on complying with the draft EU AI Act, then said the company had no plans to leave.
From TheFinanceBase Team2 min to read
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On May 24, 2023, OpenAI CEO Sam Altman said the company might stop operating in Europe if it could not comply with the EU’s proposed AI rules. Two days later, he clarified that OpenAI had no plans to leave. His first comment was a conditional warning, not an announcement of a withdrawal.

What Altman said on May 24

Speaking at an event in London, Altman objected to the draft EU AI Act’s approach to general-purpose AI. He raised the possibility that systems such as ChatGPT and GPT-4 could be classified as high-risk and face additional requirements. Reuters reported his criticism that the draft could over-regulate, and his suggestion that lawmakers could change the definition of general-purpose AI systems. Reuters’ May 24 report covered the remarks; TIME’s account recorded Altman saying, “If we can comply, we will, and if we can’t, we’ll cease operating”.

That wording made the prospect of leaving dependent on whether OpenAI could meet the requirements. It did not mean the company had decided to exit Europe.

What changed two days later

On May 26, Altman said OpenAI had no plans to leave Europe: “We are excited to continue to operate here and of course have no plans to leave,” Reuters quoted him as saying. The clarification came after his earlier comments drew criticism from EU industry chief Thierry Breton and other lawmakers. Reuters reported the clarification and the responses.

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Why the proposed rules were contentious

The AI Act was still being negotiated in May 2023. The dispute involved both the scope of the proposed obligations and whether they would be workable for companies developing general-purpose systems. Altman argued that the draft risked imposing requirements that could be technically difficult to meet and could cast too wide a net over systems such as ChatGPT and GPT-4.

Some lawmakers pushed back on the implied pressure to ease the rules. MEP Dragos Tudorache defended transparency obligations, saying, “I don’t see a reason why any company would shy away from transparency.” MEP Kim van Sparrentak argued that lawmakers should insist on company obligations for transparency, security and environmental standards. These were individual lawmakers’ positions, not a single statement of an agreed EU response. Reuters reported their comments on May 26.

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How the eventual law differs from the 2023 draft

The proposal Altman criticized was not yet the final law. In a 2024 explainer, the Associated Press described the AI Act after it received final approval as a risk-based framework: it imposes stricter requirements on high-risk uses and includes provisions covering general-purpose models. That later account provides context for how the proposal developed; it should not be read as proof that the final text was identical to the draft debated in May 2023, or as a statement of the law’s current enforcement status. The AP explainer gives an overview of the approved framework.

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