A U.S. federal court has lifted a controversial order that previously required OpenAI to retain deleted ChatGPT conversation logs, marking a significant shift in the company’s data retention obligations. The decision comes after a legal challenge from OpenAI, which had argued that the original requirement violated user privacy and went against its own privacy policies. The court’s ruling ends a contentious chapter in the ongoing legal battle between OpenAI and the U.S. government, particularly the Federal Trade Commission (FTC), which had sought to preserve user data for potential enforcement actions. OpenAI had maintained that forcing it to save deleted messages would undermine user trust and expose individuals to unnecessary privacy risks. While the order is now lifted, some users may still be affected. The company had been complying with the previous directive, meaning certain chat logs that were deleted by users may have been retained in internal systems. OpenAI has stated it is now reviewing its data practices to ensure alignment with the court’s decision and to prevent any future overreach. The outcome is seen as a win for privacy advocates who have long criticized the idea of indefinite data retention, especially for AI services that process sensitive personal information. However, it also raises questions about how AI companies will balance transparency, compliance, and user privacy moving forward. OpenAI has reiterated its commitment to user privacy and said it will continue to improve its data handling policies. The company emphasized that it no longer has a legal obligation to save deleted chats, and it will now follow its stated policy of deleting user data upon request.