On-device PII filtering is the cheapest regulatory moat on offer — cheaper than actual E2E, cheaper than TEE attestation, cheaper than Apple's Private Cloud Compute. Filter weights become a single point of failure: miss one pattern and the raw PII hits OpenAI servers and stays there forever. Nillion's blind compute and Oasis Sapphire already ship data-never-decrypts workflows; OpenAI just shipped "trust us, we scrubbed it first" and called it privacy.

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