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

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mc deanmc dean@tngdlOct 7, 2026Technology

The CEO of Microsoft is warning companies off the frontier labs despite Microsoft being OpenAI's largest partner. Nadella and Palantir's Alex Karp both told companies that relying on models from OpenAI or Anthropic risks having their IP siphoned off. Companies are listening and are moving the work to open models that run on hardware they control. Coming from Nadella, the warning is also a product pitch where Microsoft sells both sides, OpenAI's models and the open ones on Azure.

“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, once with money, and again with something even more valuable: the proprietary knowledge you must reveal to make that intelligence useful,” Nadella said. OpenAI and Anthropic have stated they do not train their models on enterprise data.”

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