Specifically, it is adding a GPL option for EiffelStudio, the development tool. It will be available as an alternative to the existing commercially licensed version, which continues to be available. Under conditions of GPL, the most popular open source license, users must also make freely available any code or program which they develop, also under the same license.
Eiffel, a 20-year old niche language, has been popular for large, highly complex applications thanks to its fast compilers and a unique design by contract feature that enforces common implementations of course code.
The goal of making an open source version available is obvious: Eiffel wants to increase the skillbase by seeding noncommercial use at colleges and universities.