OpenAI added a 'Licensed Materials' section to its Service Terms, signaling preparation for an on-premises product. The clause defines conditions for software installed on customer systems and mandates permanent deletion upon termination.
OpenAI added a new 'Licensed Materials' section to its Service Terms, governing software delivered for installation on customer's own systems, including code, containers, and modules run on local machines or private cloud. The clause requires permanent deletion of all copies upon termination.
Contract language for on-prem delivery often appears before the product it is written for. This addition strongly suggests OpenAI is preparing an on-premises product. Businesses evaluating local deployment for security-sensitive work must account for the deletion-on-termination obligation.
The deletion requirement is a critical planning item for any organization building a pipeline around on-prem inference. It signals OpenAI's product direction toward enterprise customers before any official announcement.