I think it's a combination of a fundamental distrust of the model makers and a history of them training on user data with and without consent.

The main players all allow some form of zero data retention but I'm sure the more cautious CISO/CIOs flat out don't trust it.

I think that using something like Claude on Amazon Bedrock makes more sense than directly using Anthropic. Maybe I'm naive but I trust AWS more than Anthropic, OpenAI, or Google to not misuse data.

>How is it different from the cloud? Plenty startups store their code on github, run prod on aws, and keep all communications on gmail anyway. What's so different about LLMs?

Those plenty startups will also use Google, OpenAi or the built in Microsoft AI.

This is clearly for companies that need to keep the sensitive data under their control. I think they also get support with adding more training to the model to be personalized for your needs.

It’s not different. If you have a confidentiality requirements like that, you also don’t store your code off-premises. At least not without enforceable contracts about confidentiality with the service provider, approved by the client.