Universities should be providing university hosted llms to their faculty and students. No student or faculty member should be using public llms for their work. They can share info directly with other people or in non-public forums to keep it away from commercial llms. It is going to have to be against the rules to submit anyone else's work to a commercial llm. Businesses are going to have similar policies.

Universities can host the llms just like they hosted any other computer lab or web service on campus. This is what universities are supposed to be doing. Universities should be involved in open model research and should offer models that are not datamined.