Is there evidence that this is true? Ive read that the US is actually not more litigious than some European nations and the idea that it is has been boosted by corporations that want to shift public opinion against plaintiffs (an example being the infamous McDonald’s coffee lawsuit)

I’m not qualified to say if this is accurate but thanks for putting in the effort to write it!

It isn’t, but the GDPR requires companies to scrub PII when requested by the individual. OpenAI obviously can’t do that so in theory they would be liable for essentially unlimited fines unless they deleted the offending models.

In practice it remains to be seen how courts would interpret this though, and I expect unless the problem is really egregious there will be some kind of exception. Nobody wants to be the one to say these models are illegal.