>> No they're not. It would end both companies if they were ever found to be doing that. Their terms are clear - The argument here is that with the Chinese labs you have zero legal recourse.

Their terms are not worth shit considering they are reselling you stolen copyrighted data. Even in they terms they started clearly say they retain your data for "safety reasons" for however long they want. Perhaps you didn't watch the space with Anthropic going back and forth with ToS updates(we retain your data for 30 days...stike that and add 30 days or more or no or ..whatever) like my own alpha website.

There is an enormous difference between:

* Exploiting ambiguity around fair use at a large scale before the law catches up and then jointly lobbying with your competition to make sure your interpretation of the law becomes reality.

* Explicitly signing a contract with enterprises to respect their IP and then proceeding to break that contract with your own customers.

The former is firmly in the gray area of legality and doesn't directly hurt your own customers. The latter is both an unambiguous contract violation and a flagrant attack on your own customers' most valuable asset.

Whether the terms are worth shit doesn't matter. If they're training on data from paying customers who have requested otherwise and it gets out (which it would, eventually), SAP, Accenture, Deloitte and other huge companies with well-funded legal teams would nuke them from orbit. This is a different area of law from the copyright stuff, different rules/norms/expectations/consequences apply.

> Even in they terms they started clearly say they retain your data for "safety reasons" for however long they want.

The discussion was about training, not data retention. Two very different concerns.

And if you're a decent sized customer, most providers have a route to not even retaining the data for safety/security reasons. The reason Anthropic had issues is because they do have a path to "no data storage" for Sonnet/Opus, but not for Fable. Which is why at work we have access to the former, but not the latter.

Anthropic paid a large settlement for the copyrighted data they pirated. So far, US courts have found that it's perfectly fine to train AIs on copyrighted data for which you have legal access.