Palantir, Nvidia limit AI model use over data concerns, report says

• Palantir is demanding irrevocable zero-data-retention guarantees from Anthropic before making its models available through Palantir's software platform
• Anthropic faced customer pushback after a June policy change allowed it to retain usage logs for 30 days, while OpenAI has faced scrutiny over claims it may have trained models on user data
• Nvidia limits Anthropic's use to less sensitive tasks and relies on its own Nemotron models for internal work, while Booz Allen has banned employees from using Anthropic's commercial model for proprietary cybersecurity projects

Summary: Major Tech Firms Restrict AI Model Use Over Data Concerns

Key Development:

Leading technology companies including Palantir Technologies, Nvidia, and Booz Allen Hamilton are threatening to restrict or cease using advanced AI models from Anthropic and OpenAI unless these firms guarantee protection of their intellectual property, according to a report by the Information.

Specific Company Actions:

• Palantir is demanding irrevocable zero-data-retention guarantees from Anthropic before making its models available through Palantir's software
• Nvidia limits Anthropic's use to less sensitive tasks and relies on its proprietary Nemotron models for internal work
• Booz Allen Hamilton has barred employees from using Anthropic's commercial model for proprietary cybersecurity work

Root Cause:

The concerns stem from Anthropic's June policy change for its Fable model, which gave the company rights to retain usage logs for 30 days to guard against attacks. OpenAI has faced similar scrutiny over claims it may have trained models on user data.

Market Implications:

Microsoft is capitalizing on these data security concerns by pitching isolated cloud environments and its own AI offerings to attract clients concerned about data privacy.

Industry Context:

Anthropic CEO Dario Amodei recently called for AI companies to slow frontier model development, warning that capabilities are advancing faster than researchers can understand or control—a position endorsed by OpenAI CEO Sam Altman and Elon Musk.

Both AI labs maintain they do not train on customer data by default unless companies opt in, though they collect anonymized metadata for product improvement.

Date: September 14, 2023