The enterprise strikes back: Keep your data, ditch the AI bill.

The New Stack · 2 days ago

Enterprises are increasingly concerned about protecting their data from AI labs while facing high inference costs from closed-source models like OpenAI and Anthropic, leading some to propose using lower-cost open-source models trained on private data instead. Major AI labs including OpenAI, Anthropic, and xAI have stated that API usage is not used to train their models and some offer zero data retention plans, but enterprises remain skeptical of these assurances. As a result, companies like Microsoft are considering alternatives such as open-weight Chinese models or homegrown models to reduce dependency on AI labs that are simultaneously competing in software categories where enterprises operate.