These are the same people who performed the largest scale breach of copyright in history on the theory that they could get away with it.

I’m not making any accusations, but we should not underestimate their tolerance for legal and financial risk.

It may be a little paranoid to insist on self hosting based on that, but I’m not so sure that it’s crazy.

It has been ruled that training on copyright is not a breach of copyright unless you subverted payment for it.

Which they did do, but scale is relatively miniscule to the full dataset.

Trade secrecy is all anyone has left. It's not paranoid at all. You would hope that most serious companies have a tier of corporate knowledge protection that is somewhere between Coca-Cola/KFC herbs recipe secrecy and Stringer Bell's note-taking exhortation: "is you giving the LLM notes on our unique advantage?"