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Upon termination of the agreement, customers are required to permanently delete all Licensed Materials and copies; Licensed Materials are treated as part of the Services and subject to the same disclaimers and liability limitations.
This analysis describes what OpenAI's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision establishes a mandatory permanent deletion obligation for all locally installed or customer-managed Licensed Materials upon termination, and subjects those materials to the Services' liability limitation framework rather than any separate warranty or indemnification regime.
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.
View change record →Under this clause, customers who have downloaded and installed Licensed Materials such as software, packages, or containers on their own systems must permanently delete all copies upon termination of the agreement. The agreement treats Licensed Materials as subject to the same disclaimers and liability limitations as the broader Services.
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"Upon termination, you must permanently delete the Licensed Materials and all copies thereof. The Licensed Materials are considered a part of the Services and subject to the disclaimers and limitations of liability set forth therein.Excerpt from OpenAI's Service Terms
(1) REGULATORY LANDSCAPE: This provision engages data governance and software asset management obligations, particularly in regulated industries where data retention or audit trail requirements may interact with the permanent deletion mandate. In the EU, GDPR data retention obligations may create tension with a contractual permanent deletion requirement if Licensed Materials contain or process personal data. (2) GOVERNANCE EXPOSURE: Medium. The permanent deletion obligation requires customers to maintain software asset inventories that accurately track all copies of Licensed Materials across Customer Systems. Organizations with complex IT environments may face operational challenges in certifying complete deletion. (3) JURISDICTION FLAGS: EU customers should assess whether any personal data processed through or stored in Licensed Materials is subject to GDPR retention or portability obligations that interact with the deletion requirement. Financial services and healthcare organizations may also face regulatory data retention obligations that require reconciliation with the contractual deletion mandate. (4) CONTRACT AND VENDOR IMPLICATIONS: Procurement and IT teams should establish termination procedures that include certification of Licensed Materials deletion. Customers who permit Licensed Materials to be used by subsidiary entities or contractors should ensure that the non-sublicensable and non-transferable nature of the license is reflected in downstream agreements. (5) COMPLIANCE CONSIDERATIONS: Legal and compliance teams should include Licensed Materials deletion in standard contract termination checklists and consider obtaining written certification of deletion from relevant IT teams. The interaction between the deletion obligation and any backup or disaster recovery systems that may retain copies of Licensed Materials should be assessed prior to deployment.
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This provision establishes a mandatory permanent deletion obligation for all locally installed or customer-managed Licensed Materials upon termination, and subjects those materials to the Services' liability limitation framework rather than any separate warranty or indemnification regime.
Under this clause, customers who have downloaded and installed Licensed Materials such as software, packages, or containers on their own systems must permanently delete all copies upon termination of the agreement. The agreement treats Licensed Materials as subject to the same disclaimers and liability limitations as the broader Services.
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