alt Hacker NewsHaving worked in / adjacent several such industries, a lot of the question depends on scale.
A trillion-dollar business can easily trade dollars for the privacy. A business with $1M to spend won't even get a phone call with OpenAI or Anthropic, who were the only* previous players in town for doing this.
Worst-case example: Bootstrapped startup working in military.
It's also the case that an open model enables many more intermediate-cost solutions. E.g. providers certified for specific applications, on-prem rentals, etc.
* Omitting Azure, which gives some privacy for some $$$ on their models, but not at the level of high-security.
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> Omitting Azure, which gives some privacy for some $$$ on their models, but not at the level of high-security.
If I were ranking third parties on their ability to safely handle my data without compromising it, I would rank Anthropic pretty low for things like Fable (where they more or less promise that they will misuse my data), but I want Azure pretty low in the sense that I fully expect them to be compromised.
I would tend to trust Amazon to avoid being compromised.
> Worst-case example: Bootstrapped startup working in military.
That's the easiest case.
AWS Bedrock models running in AWS Secret Cloud for Industry. (I really have no affiliation with them, I'm just like... this is a completely solved problem, why do people think this is hard and requires on-prem hardware?)
https://www.aboutamazon.com/news/aws/aws-secret-cloud-for-in...
I'm with GP that these are tinfoil hat concerns, when there are solutions to all of these, unless you're perhaps in some country with very specific needs beyond things like European sovereignty or US military secrets (like a non-US defense concern).