When the data ends up inevitably in the state’s hands (almost certainly thanks to the AI company they’re contracting), it is 100% part of the surveillance state. Same reason telecom providers and Big Tech generally is part of the surveillance state; they’ll just hand over data, no questions asked, no warrants provided.

MIT has a police force, so in the way that matters for this particular topic, yes, they are a state.

Aside from that, the lines are very blurred these days, as the state often ends up gaining regular, easy access to systems such as this.

(Regardless, it's a bit in bad faith to bring up surveillance-state scenarios, and then, when called on it, claim that it doesn't matter because it technically doesn't apply to the organization at hand. Even though it does in the ways that matter.)

Yes. They have borders, government, and a police force.