> you trust them enough not to log your data prior to this, but not enough to trust their stated limits on how logged data will be used now
It doesn't really matter how much you happen trust another party. In the regulatory world it only matters what contracts they will sign that guarantee their compliance. We do have those with AWS, we don't with Anthropic. If Anthropic physically captures the data, they just moved themselves outside the boundary of parties who we can do business with. Unless they want to sign a contract and implement all the corresponding compliance measures. They are insane if they think that's a good deal for them to do all that right now in every jurisdiction where AWS operates, when AWS has already spent a decade building it up.
It will absolutely cause some non-trivial number of customers to shift their configs away from Anthropic.