No they're not. It would end both companies if they were ever found to be doing that.
Their terms are clear - if you use the coding plans they can[0] train in return. Enterprise and API, absolutely not.
The argument here is that with the Chinese labs you have zero legal recourse.
[0] opt-in, thanks
https://youtu.be/0A3sGymV6kY?si=ti7uSZtYqJ3vKpGM
I found it a little shocking TBH
Their terms are not worth shit considering they are reselling you stolen copyrighted data. Even in they terms they started clearly say they retain your data for "safety reasons" for however long they want. Perhaps you didn't watch the space with Anthropic going back and forth with ToS updates(we retain your data for 30 days...stike that and add 30 days or more or no or ..whatever) like my own alpha website.
* Exploiting ambiguity around fair use at a large scale before the law catches up and then jointly lobbying with your competition to make sure your interpretation of the law becomes reality.
* Explicitly signing a contract with enterprises to respect their IP and then proceeding to break that contract with your own customers.
The former is firmly in the gray area of legality and doesn't directly hurt your own customers. The latter is both an unambiguous contract violation and a flagrant attack on your own customers' most valuable asset.
It's simple mental calisthenics. If you are handing an organization whose entire business model is built on stealing data with spurious reasoning, what do you actually expect they will do? Don't be a fool.
Enterprise contracts are checked and agreed by lawyers. The contract states no training.
If the provider fucks up, there are actual monetary damages defined for breach of contract.
No, you have to opt-in to that. There's a privacy toggle on account settings.
* A company following suit with their entire industry in choosing a very generous definition of fair use.
* A company being the first to defect and actually break their signed contracts with enormous enterprises committing to not train on those enterprises' most valuable assets.
Training on copyrighted works signs them up to be a part of a system that is at this point too big to fail and places them in good company with all of their competition. Breaking their signed agreements would open them up to very well-founded and well-funded lawsuits for contract violation and give their competition a huge boost.
All of a sudden "we actually don't break our contracts" would be a selling point. No company in their right mind is going to let what should be table stakes become a differentiator for their competition.
So in your opinion, they are training on your data even if you toggle the "don't train on my data" checkbox off?
That's a bold assertion.
Think of it as the Big Data hype some years ago.
What they have been doing, with some narrow exceptions where they have lost billions of dollars in court cases*, is not at all obviously prohibited by copyright law. Neither web scraping (i.e. asking for copies of data from people you have every reason to believe are authorized to give you copies) or running algorithms on copyrighted data are generally copyright infringment. I say generally because the "algorithm" of "ctrl-c ctrl-v" is obviously an exception, and there's some argument that training is similar enough to be illegal - a fairly weak argument that is mostly losing in court but has some tiny chance of still succeeding.
The law doesn't have teeth to prohibit things not prohibited under the law - no matter how much many people would like them to be prohibited. This shouldn't be surprising.
Unlike with copyright, the law does pretty clearly prohibit violating contractual terms to not hang onto or use other peoples data for purposes other than the narrow ones laid out in the contract when you agreed to the contract.
* Namely acquiring copies of data from people who they know aren't authorized to make copies - i.e. torrenting.
So they are in fact literally reselling copyrighted data.
More problematically there are camouflaged sharp spines pointed primarily in the direction of poorer people, and people not advised by lawyers.
But none of that matters here when the damaged parties include the megacorps of the world.