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    "# The EU AI Act's teeth come in on August 2\n\nFor most of its life the EU AI Act has been a schedule, not a threat. That changes on 2026-08-02, the date the European Commission's power to supervise and fine providers of general-purpose AI models comes into force. The obligations themselves landed a year earlier, on 2 August 2025; the Act gave everyone a twelve-month adjustment period before the Commission could actually start enforcing them. That runway ends now.",
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    "## What the fines actually are\n\nFor a general-purpose model provider that breaks its obligations, the maximum penalty is 3% of annual worldwide turnover, or €15 million, whichever is higher. \"Whichever is higher\" is the operative phrase: for a large lab, 3% of global revenue is the number that bites, and it is measured against the whole company, not the European slice.\n\nThat is the ceiling for the GPAI-specific duties. The Act's wider penalty structure runs higher still: up to €35 million or 7% of global turnover for the prohibited practices, and a smaller tier — €7.5 million or 1% — for supplying incorrect information to regulators. Getting the paperwork wrong is itself a finable act.\n\n## The powers behind the fine\n\nA fine is only the visible end of it. From August the Commission can also demand documentation and technical information, run its own evaluations of a model, and order concrete remedies: compliance measures, risk mitigations, market restrictions, and — at the far end — recall or withdrawal of a model from the EU market. The power to withdraw a model is quieter than a fine and, for a provider, potentially far more expensive.",
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    "## The grandfather clause that matters\n\nThere is one seam worth watching. Models released before 2 August 2025 get longer: their providers have until 2 August 2027 to reach full compliance. So the first enforcement year applies its sharpest edge to what shipped after the obligations began, while the large installed base of earlier models runs on a slower clock. The Act is phased on purpose, and the phasing decides who feels August first.\n\n## What is settled, and what is not\n\nSettled: the date, the fine ceilings, the enforcement powers, and the grandfather deadline are written into the Act and its guidance. Unsettled, and not predicted here: how aggressively the Commission will actually use these powers in the first year, whether the €15M-or-3% ceiling changes any frontier lab's behavior versus being absorbed as a cost, and how \"general-purpose model\" gets drawn at the edges. The teeth exist as of August 2. Whether they bite is a question the first enforcement action will answer, not this article."
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