Europe’s Voluntary Experiment In AI Oversight

On July 10, the European Union unveiled its voluntary code of practice for general-purpose AI models—a collaborative effort between regulators and industry aimed at guiding the responsible development and deployment of AI. The framework promotes transparency, risk assessment, and ethical data use, urging companies to disclose summaries of training data, respect copyright laws, and establish internal risk-monitoring systems. In exchange, signatories gain regulatory benefits such as reduced administrative pressure and clearer legal pathways. While participation is not mandatory, it carries symbolic weight: joining signals alignment with European values and may shield companies from intensified oversight. So far, only a handful of major players—including Mistral, Microsoft, and OpenAI—have signed on.

The EU’s AI regulatory push has faced pushback from European tech leaders, who in an open letter requested a two-year delay on key provisions of the AI Act. Meanwhile, U.S. tech giants like Google and Meta have lobbied for softer rules, warning that strict compliance could hinder innovation. Joel Kaplan, Meta’s global affairs chief, criticized the EU’s approach, claiming it could “throttle the development and deployment of frontier AI models in Europe” and harm European startups trying to build on them.

OpenAI: Compliance As A Gateway To Growth

OpenAI’s endorsement of the EU code fits within a broader strategy of positioning itself as a cooperative, trustworthy player in global AI governance. Ben Rosen, OpenAI’s head of AI policy, described the moment as “significant for both the EU and the industry.” This move coincides with OpenAI’s rapid expansion across Europe, where it sees major market opportunities. By aligning with EU standards, OpenAI strengthens its credibility with governments, enterprises, and the public—key for scaling its business on the continent.

Beyond compliance, OpenAI is deepening its European footprint through investments in data centers, AI education initiatives, government partnerships, and support for local startups. The company has long emphasized transparency, publishing system cards, sharing evaluation frameworks, and inviting external audits of its models. It was an early adopter of international AI safety agreements like the Bletchley Declaration and the Seoul Framework. These actions are not just ethical gestures—they’re strategic, helping OpenAI shape regulatory norms while demonstrating leadership in responsible AI.

By embracing the EU’s voluntary code, OpenAI reinforces its public commitment to avoiding AI applications that could “harm humanity or unduly concentrate power,” as stated in its charter. The framework offers a platform to showcase this commitment, building trust as scrutiny over powerful AI systems intensifies.

Meta: Pushback Amid Strategic Reinvention

Meta’s decision to reject the EU code reflects its broader skepticism toward what it views as restrictive, innovation-suppressing regulation. This stance unfolds against a backdrop of ongoing legal battles in Europe over data privacy and digital platform rules, including the Digital Services Act and Digital Markets Act. Recently, these regulatory disputes have taken on geopolitical overtones, with the U.S. administration using them as leverage in trade talks—suggesting AI policy is now entangled with tariff negotiations. Meta has appealed to the U.S. government, urging the President to “defend American AI companies and innovators from overseas extortion and punitive fines, penalties, investigation, and enforcement.”

Meta’s refusal also comes at a pivotal moment in its AI evolution. After lukewarm responses to its Llama 4 series, the company is doubling down on catching up in the AI race. Its recent $14.3 billion investment in Scale AI brought founder Alexandr Wang into Meta to lead a new superintelligence research lab, focused on building AI systems that may one day exceed human cognitive abilities. CEO Mark Zuckerberg has announced plans to invest “hundreds of billions of dollars” in computing infrastructure to power this ambition.

Two Approaches, Two Visions For AI’s Future

OpenAI and Meta are sending starkly different signals to regulators on both sides of the Atlantic—each reflecting a calculated vision for how AI should be governed. OpenAI is betting that early cooperation and transparency will earn influence in shaping future rules and prevent more aggressive regulation. Meta, in contrast, is wagering that vocal opposition will curb regulatory overreach, especially in the open-source community where flexibility is prized.

These divergent paths are rooted in their business models. OpenAI, operating as a capped-profit entity with strong ties to Microsoft, relies on a reputation for responsibility to win enterprise clients and navigate concerns about powerful AI. Meta, whose revenue still flows largely from digital advertising and mass-market platforms, positions itself as a champion of open innovation—appealing to developers and researchers wary of a future dominated by closed, heavily regulated AI systems.

This split may foreshadow the larger battle over global AI governance. Voluntary frameworks like the EU’s code are proving grounds for transparency, accountability, and industry influence. In this context, OpenAI and Meta aren’t just making compliance choices—they’re rehearsing for the regulatory conflicts that will define the next era of AI.

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