While OpenAI and Anthropic battle over data privacy, more companies look to open models and ‘sovereign AI’

The biggest controversy came in June, when Anthropic began mandating a 30-day retention policy for all chats with its most powerful AI models, Fable and Mythos. Many companies had an “almost allergic reaction” to this, says a source who advises clients on becoming AI-native, speaking under the condition of anonymity because his company works closely with Anthropic. “The industry at large totally rejected it, and was pretty angry about it.” A month later, both Microsoft CEO Satya Nadella and Palantir CEO Alex Karp warned companies against relying on AI models from frontier AI companies, saying that they risked having the IP siphoned off. “You essentially pay for intelligence twice,…