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OpenAI updated its Service Terms on June 2, 2026, adding new sections governing Licensed Materials (software and code installed on customer systems) and ChatGPT Sites (a website creation feature). The Licensed Materials section establishes a limited, non-exclusive license for copying and installing software on customer-controlled systems, with restrictions on modification, redistribution, and sublicensing. The ChatGPT Sites section references separate terms governing website creation and publishing. The update also moved language about GPT distribution licenses and third-party GPT disclaimers to appear earlier in the terms structure, and made minor formatting corrections throughout the document.
The updated terms establish new licensing provisions for customers who download and install software components (Licensed Materials) on their own systems. Under the revised terms, OpenAI grants a limited, non-exclusive, non-transferable license to install and use Licensed Materials solely in connection with the Services, but customers may not modify, redistribute, or sublicense the materials. Upon termination of service, customers must permanently delete the Licensed Materials. Additionally, OpenAI introduced a new ChatGPT Sites feature for creating and publishing websites, with use governed by separate ChatGPT Sites Terms. You can review the ChatGPT Sites Terms via the referenced link to understand specific conditions for website creation and maintenance.
The updated terms establish binding license restrictions for organizations deploying OpenAI's downloadable software components, including prohibitions on modification, redistribution, and sublicensing, and mandate permanent deletion upon service termination. The introduction of ChatGPT Sites creates a new reference to separately published terms, requiring organizations to audit both document sets if offering website creation capabilities. These changes formalize the licensing framework for locally installed materials and introduce new operational governance requirements for customers using downloadable components or the ChatGPT Sites feature.
→ Review the Licensed Materials restrictions if your organization downloads and installs OpenAI software on internal systems; confirm that modification and sublicensing activities comply with the non-exclusive license grant.
→ If using the ChatGPT Sites feature, obtain and review the separate ChatGPT Sites Terms via the link provided in the agreement.
→ Document the permanent deletion requirement for Licensed Materials in your service termination and system decommissioning procedures.
→ Organizations that modify or sublicense Licensed Materials in violation of the new licensing terms may face claims of breach of the usage restrictions stated in the agreement.
→ Upon service termination, failure to permanently delete Licensed Materials as required by the updated terms will constitute a breach of the termination clause.
Across all monitored documents, OpenAI has made 10 significant changes.
6 of OpenAI's significant changes have been classified as negative for consumers.
OpenAI grants a limited, non-exclusive, non-transferable license to install and use Licensed Materials only on customer systems; modification, redistribution, and sublicensing are prohibited, and the license terminates upon service termination or written notice.
Upon service termination, customers must permanently delete all Licensed Materials and copies thereof.
New feature for creating and publishing websites; use is governed by separate ChatGPT Sites Terms referenced in the main services agreement.
This change record describes what was added, removed, or modified in the document. Analysis reflects what the updated agreement states or permits. It does not constitute a legal determination about enforceability. Applicability may vary by jurisdiction. Methodology
When your OpenAI service ends, you must remove all installed software components and their copies from your systems.
You cannot alter, resell, or share OpenAI's downloadable software components with others.
Website creation through ChatGPT Sites is subject to additional terms available in a linked document.
OpenAI added two new operational frameworks: Licensed Materials licensing terms governing locally installed software (with restrictions on modification, sublicensing, and data handling) and a ChatGPT Sites feature (website creation) governed by separate dedicated terms. Organizations deploying OpenAI software on internal systems should review the Licensed Materials license grant scope, permitted use boundaries, and termination-triggered deletion obligations. The ChatGPT Sites section creates a reference obligation to separately published terms, requiring organizations offering website creation to customers to audit both this services agreement and the standalone ChatGPT Sites Terms. No specific regulatory trigger is apparent, but the Licensed Materials provisions should be assessed within existing vendor licensing and data residency policies.
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Analyst $49/moConductAtlas provides verified policy intelligence sourced directly from platform documents. All analysis is intended to support, not replace, legal and compliance review. Record CA-C-002597.
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