Custom AI models for the enterprise · New York · LondonSecurityResearchContact sales
Finetune the World
European Union

EU AI Act: when does fine-tuning a model make you its provider?

The Commission’s answer is a compute threshold. We did the arithmetic for real fine-tuning runs: a typical enterprise fine-tune sits about four orders of magnitude below it.

The rules in force#

The obligations for providers of general-purpose AI (GPAI) models in the AI Act (Regulation (EU) 2024/1689), including technical documentation, information for downstream providers, a copyright policy and a public summary of training content under Article 53, have applied since 2 August 2025. On 18 July 2025 the Commission published guidelines on the scope of those obligations, including how they apply to organizations that modify an existing model.

Separately, the obligations for high-risk AI systems under Annex III — uses such as creditworthiness assessment or recruitment — were deferred by the Digital Omnibus on AI, adopted in June 2026, to 2 December 2027. Those obligations attach to the AI system and its use, regardless of whether you fine-tuned the model inside it.

Not legal advice

This page summarizes public guidance as we understand it in October 2026 to help technical and risk teams plan. Confirm obligations with your counsel and compliance function.

The one-third compute rule#

According to the guidelines, a downstream modifier becomes the provider of the modified GPAI model only if the modification significantly changes the model’s generality, capabilities or systemic risk. As an indicative criterion, that is presumed when the training compute used for the modification exceeds one-third of the compute used to train the original model:

When the original compute is unknown, the guidelines substitute one-third of the presumption thresholds: FLOPs for GPAI models generally, or FLOPs for models presumed to carry systemic risk. Where a modifier does become a provider, its obligations are limited to the modification.

Where real fine-tunes fall#

Using our compute model ( for full fine-tuning plus activation recomputation and attention):

ScenarioTraining FLOPsvs ⅓ × 10²³vs ⅓ of original pre-training
7B model, full fine-tune, 60M tokens3.8e+188,879× below73,029× below
72B model, full fine-tune, 300M tokens1.8e+20188× below—
Threshold (unknown original, non-systemic)3.3e+22——
Threshold (unknown original, systemic risk)3.3e+24——

For the original compute of a 7B model we used the same rule of thumb: with parameters and pre-training tokens (the corpus size reported for Qwen2.5) gives FLOPs, so one-third is . A 60M-token fine-tune at is about 73,029 times smaller.

0.0010.010.11101001,00010,000100,0001M10M100M1BEU ⅓ threshold72B14B7B0.5BTraining tokens (log scale)H100-hours at 40% MFU (log scale)
40%MFU
2.6 h7B full fine-tune, 60M tokens
123 h72B full fine-tune, 300M tokens
23,406 hEU AI Act ⅓ × 10²³ FLOPs, same hardware
Interactive: H100-hours (vertical, log scale) over model size (0.5B–72B, log) and training tokens (1M–1B, log), using 8N FLOPs per token for full fine-tuning with activation checkpointing. Because hours scale as N × D, the surface is a tilted plane in log–log–log space. Yellow markers: a 7B/60M-token and a 72B/300M-token run. The translucent plane is the EU AI Act indicative threshold for unknown original compute; every realistic fine-tune sits far below it. Drag to rotate; the slider changes utilisation.

Even generous enterprise fine-tunes — hundreds of millions of tokens, several RL stages — remain orders of magnitude short of the threshold. Continued pre-training on billions of tokens is the scenario to check carefully.

What still applies to a fine-tuner#

  • Your obligations as a deployer or provider of an AI system, which depend on the use case: transparency duties under Article 50 (applicable from August 2026), and high-risk obligations for Annex III uses from December 2027.
  • Documentation you will need anyway. Downstream providers rely on the base-model provider’s documentation; keep it, alongside your own data card, model card and compute record.
  • Licence terms of the base model, which are separate from the Act and sometimes stricter.

We record training compute (FLOPs, hardware, dates) for every engagement by default, so the threshold question can be answered with evidence rather than estimates.

References#

  1. Regulation (EU) 2024/1689 (Artificial Intelligence Act), Official Journal of the European Union.
  2. European Commission (2025). Guidelines on the scope of obligations for providers of general-purpose AI models under the AI Act, 18 July 2025. Summary: artificialintelligenceact.eu/gpai.
  3. Qwen Team (2024). Qwen2.5 Technical Report. arXiv:2412.15115.

Frequently asked

Can’t find your question? Ask a senior engineer.

Does fine-tuning a model make me a provider under the EU AI Act?

Under the Commission’s July 2025 GPAI guidelines, generally only if the modification uses more than one-third of the original model’s training compute (or one-third of 10^23 FLOPs when that is unknown). Typical enterprise fine-tunes are orders of magnitude below that.

When do EU AI Act high-risk obligations apply?

Following the Digital Omnibus on AI adopted in June 2026, obligations for Annex III high-risk AI systems apply from 2 December 2027, and for Annex I systems from 2 August 2028.

Bring us one task. We’ll show you what a specialist model can do.

A 45-minute briefing with a senior research engineer. You leave with a feasibility read, a data plan and a fixed quote, whether or not you hire us.

Book a briefing →