The problem is when third-party (to OpenAI, and I include Microsoft here, for the purposes if this comment) companies try to build on top of this product - they

The problem is when third-party (to OpenAI, and I include Microsoft here, for the purposes if this comment) companies try to build on top of this product - they will not be able to launch products on top of it in the EU either (unless they do a weird user-initiated transfer of data to the US, process it, and return the result. Even then, the EU has been experimenting with trying to claim sovereignty over income from outside the EU for non-EU-based multi-nationals, so they could concert ivably target this "workaround". It remains to be seen whether the USA will attempt to persuade them to remember how Westphalian sovereignty works, or I'd the US government decides to match them and start targeting foreign companies' foreign turnover in applying remedies.