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Microsoft is a US company and fully exposed to the CLOUD Act and FISA 702 whatever EU data residency it offers. It has completed an EU Data Boundary for its cloud, signed the EU GPAI Code of Practice and runs a public Trust Center with an EU AI Act page. Its model portfolio is mixed: permissively licensed open-weight Phi models on HuggingFace, plus proprietary in-house MAI models and a large OpenAI relationship. Regulated EU customers should treat the US-jurisdiction and sovereignty question as the main residual risk and check the licence per model.
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