What is OpenAI?
Tools, assistants and prompting
OpenAI is the company that develops products such as ChatGPT and developer tools for using its AI models through an API. In practice, businesses usually meet OpenAI as either a staff-facing assistant, a platform for embedding AI into software and workflows, or both, with important choices around data handling, retention, access and review.
Reviewed by Jackie, Head of Learning & Development, Levellers - Last reviewed 8 June 2026
What this means
ChatGPT is a product. OpenAI is the company behind it, and it also runs a developer platform that lets teams use its models through APIs in their own software and workflows. OpenAI describes itself as an AI research and deployment company, and its business pages separate two main routes to use: ChatGPT for workforce use and the API platform for building applications and automated operations.
For a non-specialist business reader, that means "OpenAI" usually refers to a provider relationship rather than one single app. You might buy a workspace tool for staff, build a workflow into an internal system, or do both.
Why it matters
Provider names matter when they change the operating model. With OpenAI, the practical questions are whether the work is better handled inside a shared assistant, inside your own product or workflow, or through a mix of both; and whether the task involves documents, code, images, voice, customer data or regulated information. OpenAI's business and developer pages describe different surfaces, controls and integration routes, so delivery teams should review the route to use before judging the tool itself.
OpenAI also makes different data handling promises for consumer and business contexts. OpenAI says business inputs and outputs are not used for training by default, while consumer services such as ChatGPT may use content for training unless the user opts out.
How it works
At a high level, OpenAI offers direct products such as ChatGPT for end users and an API platform for developers. Its documentation points teams towards the Responses API for direct model requests and the Agents SDK for agent workflows, with support across text, structured output, tools and multimodal work.
Data handling depends on the route and the endpoint. OpenAI's enterprise privacy materials say organisations own and control business data, and its platform data guide shows that some API endpoints can be eligible for Zero Data Retention while others store application state until deleted or for a fixed period. That distinction matters when legal, security and compliance teams review fit.
Examples
Typical business uses include drafting and revising internal documents, analysing datasets or reports inside ChatGPT, helping engineers write or review code, and embedding AI steps into customer support, knowledge-management or recommendation workflows through the API. These are examples of where OpenAI surfaces are positioned today, not proof that every use case will produce value in every organisation.
Workforce assistant: a team uses ChatGPT to summarise packs, compare versions and prepare first-draft analysis before human review.
Embedded workflow: a product or service team uses the API to add search, extraction, classification or drafting into an internal system.
Agent workflow: a repeated process uses tools, approvals and background execution only where the workflow genuinely benefits from automation rather than a one-off prompt.
Common misunderstandings
OpenAI is not the same thing as ChatGPT. ChatGPT is one product route; OpenAI also provides APIs, admin controls and developer tooling. It is also a mistake to assume that "using OpenAI" means a single model, a single retention rule or a single security posture. Those details vary by plan, product and endpoint.
Another common misunderstanding is that selecting a well-known provider solves the operating problem. The ICO and NIST both point organisations back to risk management, governance, data minimisation and meaningful human review, which means the workflow still needs ownership and checks even when the provider is familiar.
Risks and boundaries
If the task touches personal data, confidential files or important decisions, review purpose, minimisation, access, retention and human oversight before rollout. ICO guidance stresses governance, data minimisation and meaningful human review where appropriate, while NIST frames generative AI risk management as a structured, voluntary process for design, deployment, use and evaluation.
For OpenAI specifically, check the exact product and API features in scope. Consumer and business defaults differ, and some API capabilities are not Zero Data Retention eligible or retain application state by design. Volatile details such as model names, connectors and endpoint behaviour should be re-checked close to publication or procurement.
What to do next
Start by naming one workflow, not one vendor. Decide whether you need a staff-facing assistant, an embedded AI step in software, or both. Then record the data involved, who approves outputs, how long information must be retained, and whether the task could be handled with ChatGPT directly or needs a build route through OpenAI's platform.
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FAQs
Is OpenAI the same as ChatGPT?
No. OpenAI is the provider. ChatGPT is one OpenAI product route, alongside the API platform and other developer tooling.
Can a business use OpenAI without building software?
Yes. OpenAI offers ChatGPT business and enterprise products for direct workforce use, as well as APIs for teams that want to build AI into their own systems.
Does OpenAI use business data for training?
OpenAI says it does not train on business-user inputs or outputs by default. Its consumer services may use content for training unless the user opts out.
What should a business review before adopting OpenAI?
Review the route to use, the data involved, retention requirements, endpoint behaviour, admin controls and where meaningful human review is needed.