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Not necessarily - there are tons of zero data retention (ZDR) model hosting options, including big players like Amazon.
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You can use all the flagship models on Amazon Bedrock and have a contractually obligated air gap between your data and the model providers.
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How do you air gap between a model and the data it needs to operate?
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The cynic in me thinks this will end up being a honeypot for anyone asking sensitive immigration or tax questions.
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Often not, vendors like OpenAI or OpenAI through Azure might retain messages for safety reasons if they activate some safety filter, but it won't use it for training.
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