3. They would sue. And it could have very meaningful impact. NYTimes copyright lawsuit is not a valid comparison because because that's a violation of national/state law which really only matters to the extent that the government is enforcing that stuff which is not the biggest concern rn (these companies are large enough that the threat of the legal costs of fighting in court is not that scary and you'd need a government actually willing to punish them substantially for them to be scared). This stuff would be under contract law against other mega corporations with big legal teams who are also their customers which is a much scarier prospect imo

There's a huge difference between AI companies exploiting a grey area like training on public corpora and violating a private contract that they explicitly entered into with another party. The latter is very explicitly illegal and would never survive trial in Delaware Chancery court. And all of that is before we get into Federal contracts where training on TS/SCI data could lead to criminal charges.

There's a huge market in the US for providing AI services while respecting client privacy. It makes sense for at least one major provider to offer this.

> Great in theory, but what are US enterprises going to do _if_ their private data is later found to be used for training?

This. And it’s already happening:

> 2. Use Chinese AI technology, either hosted by Chinese companies or the models self-hosted.

> Sue US AI companies for damages

Yes that's the whole point, at least it's an option in the US and Europe. Good luck getting any redress from China. Anthropic was already hit with a $1.5B class-action which would be impossible against a Chinese business.