OpenAI API

API platform for GPT, DALL-E, Whisper and other foundation models

Modal

Serverless GPU compute platform for AI model training, inference, and data pipelines

OpenAI API

Moderate

14/25

Modal

Caution

9/25

Score Breakdown

DimensionOpenAI APIModal

Data Residency

Where is your data stored and processed?

OpenAI API: All data processed on US-based Microsoft Azure infrastructure. No EU data residency option available. Enterprise customers cannot choose hosting region.

Modal: US-only infrastructure. No EU data centre options. Not suitable for GDPR personal data processing without SCCs and TIA.

2/5

All data processed on US-based Microsoft Azure infrastructure. No EU data residency option available. Enterprise customers cannot choose hosting region.

1/5

US-only infrastructure. No EU data centre options. Not suitable for GDPR personal data processing without SCCs and TIA.

Legal Jurisdiction

Which laws govern the company and your data?

OpenAI API: US Delaware LLC subject to US jurisdiction including CLOUD Act. Offers GDPR-compliant DPA for EU customers, but legal entity is solely US-based.

Modal: Delaware incorporation, US jurisdiction, CLOUD Act applies. Basic GDPR privacy documentation. No EU subsidiary.

2/5

US Delaware LLC subject to US jurisdiction including CLOUD Act. Offers GDPR-compliant DPA for EU customers, but legal entity is solely US-based.

2/5

Delaware incorporation, US jurisdiction, CLOUD Act applies. Basic GDPR privacy documentation. No EU subsidiary.

Data Retention & Training

Is your data used for model training?

OpenAI API: API data not used for model training by default. Zero data retention option available. Clear data retention policies documented. Abuse monitoring data retained for 30 days.

Modal: Customer compute workloads are isolated and not used for shared training. Workload outputs are customer-controlled. Data governance documentation is lighter than enterprise-focused providers.

4/5

API data not used for model training by default. Zero data retention option available. Clear data retention policies documented. Abuse monitoring data retained for 30 days.

3/5

Customer compute workloads are isolated and not used for shared training. Workload outputs are customer-controlled. Data governance documentation is lighter than enterprise-focused providers.

Certifications

ISO 27001, SOC 2, Cyber Essentials, etc.

OpenAI API: SOC 2 Type II certified. GDPR DPA available. No ISO 27001 or C5 certification publicly disclosed.

Modal: No published independent certifications. Developer-focused startup with self-attested security practices. Not yet suitable for regulated industry enterprise procurement.

3/5

SOC 2 Type II certified. GDPR DPA available. No ISO 27001 or C5 certification publicly disclosed.

1/5

No published independent certifications. Developer-focused startup with self-attested security practices. Not yet suitable for regulated industry enterprise procurement.

Regulatory Fit

Suitability for regulated industries and professional services

OpenAI API: Suitable for many business use cases with appropriate DPA. Enterprise tier offers enhanced compliance. Not ideal for highly regulated EU industries requiring data sovereignty.

Modal: Suited to AI developers and startups building non-personal-data workloads. US jurisdiction and absence of certifications limit suitability for regulated EU industries. Good for R&D and prototyping contexts.

3/5

Suitable for many business use cases with appropriate DPA. Enterprise tier offers enhanced compliance. Not ideal for highly regulated EU industries requiring data sovereignty.

2/5

Suited to AI developers and startups building non-personal-data workloads. US jurisdiction and absence of certifications limit suitability for regulated EU industries. Good for R&D and prototyping contexts.

Total Score

14/25

9/25

Best For

OpenAI API

Best for teams on a tight budget.

Modal

Best for privacy-conscious teams who need strong data retention controls; teams on a tight budget; enterprises requiring SSO integration.

Detailed Comparison

Modal vs OpenAI API: Trust & Compliance Comparison

Modal (Modal Labs, US) scores 9/25 overall with a Review Required (Caution) trust badge. Serverless GPU compute platform for AI model training, inference, and data pipelines. OpenAI API (OpenAI, US) scores 14/25 with a Bronze (Moderate) trust badge. API platform for GPT, DALL-E, Whisper and other foundation models.

Dimension-by-Dimension Breakdown

#### Data Residency

OpenAI API leads with 2/5 vs 1/5.

●Modal (1/5): US-only infrastructure. No EU data centre options. Not suitable for GDPR personal data processing without SCCs and TIA.

●OpenAI API (2/5): All data processed on US-based Microsoft Azure infrastructure. No EU data residency option available. Enterprise customers cannot choose hosting region.

#### Legal Jurisdiction

Both score equally at 2/5.

●Modal (2/5): Delaware incorporation, US jurisdiction, CLOUD Act applies. Basic GDPR privacy documentation. No EU subsidiary.

●OpenAI API (2/5): US Delaware LLC subject to US jurisdiction including CLOUD Act. Offers GDPR-compliant DPA for EU customers, but legal entity is solely US-based.

#### Data Retention & Training

OpenAI API leads with 4/5 vs 3/5.

●Modal (3/5): Customer compute workloads are isolated and not used for shared training. Workload outputs are customer-controlled. Data governance documentation is lighter than enterprise-focused providers.

●OpenAI API (4/5): API data not used for model training by default. Zero data retention option available. Clear data retention policies documented. Abuse monitoring data retained for 30 days.

#### Certifications

OpenAI API leads with 3/5 vs 1/5.

●Modal (1/5): No published independent certifications. Developer-focused startup with self-attested security practices. Not yet suitable for regulated industry enterprise procurement.

●OpenAI API (3/5): SOC 2 Type II certified. GDPR DPA available. No ISO 27001 or C5 certification publicly disclosed.

#### Regulatory Fit

OpenAI API leads with 3/5 vs 2/5.

●Modal (2/5): Suited to AI developers and startups building non-personal-data workloads. US jurisdiction and absence of certifications limit suitability for regulated EU industries. Good for R&D and prototyping contexts.

●OpenAI API (3/5): Suitable for many business use cases with appropriate DPA. Enterprise tier offers enhanced compliance. Not ideal for highly regulated EU industries requiring data sovereignty.

Certifications at a Glance

Certification	Modal	OpenAI API
GDPR DPA	No	Yes
SOC 2 Type II	No	Yes

Overall Verdict

OpenAI API has a clear trust advantage, scoring 14/25 compared to Modal's 9/25. OpenAI API particularly excels in data residency, data retention & training, certifications, regulatory fit.

Frequently Asked Questions

Which is better for EU compliance, OpenAI API or Modal?

OpenAI API has a TrustKit score of 14/25 while Modal scores 9/25. OpenAI API currently rates higher across data residency, legal jurisdiction, data retention, certifications, and regulatory fit.

How do OpenAI API and Modal compare on data residency?

OpenAI API scores 2/5 for data residency (All data processed on US-based Microsoft Azure infrastructure. No EU data residency option available. Enterprise customers cannot choose hosting region.), while Modal scores 1/5 (US-only infrastructure. No EU data centre options. Not suitable for GDPR personal data processing without SCCs and TIA.).

Are OpenAI API and Modal GDPR compliant?

Both tools are assessed across five compliance dimensions. OpenAI API has a regulatory fit score of 3/5 and Modal scores 2/5. Check the full comparison above for a detailed breakdown.

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