Is running your llm through azure insecure? I mean more so than running anything on cloud? My understanding was that azure gpt instances were completely independent with the same security protocols as databases, vms, etc.

Azure wouldn't be if you have your company AD/Oauth, I'm GUESSING running local models with data transfer might expose that communication if your local machine is compromised, or someone else's, potentially is multiple points of leakage, companies generally like to limit that risk. This is all an assumption btw.

Edit : grammar