Nvidia, Palantir restrict OpenAI and Anthropic use over data retention concerns
Palantir, Nvidia, and Booz Allen Hamilton have moved to limit employee use of Anthropic and OpenAI's AI models over concerns about proprietary data handling. The dispute was triggered by Anthropic's 30-day data retention policy, introduced in June alongside its Claude Fable 5 model. Palantir is demanding irrevocable zero data retention guarantees, while Nvidia has redirected sensitive workloads to its own in-house Nemotron models. In response to the backlash, Anthropic has introduced a set of protections called Enterprise Frontier Safeguards. The standoff highlights growing corporate anxiety over how leading AI providers store and potentially use confidential business data.
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