[yuliyp]

That's the normal way a privacy policy is worded. They start by describing the data they get from you, then they describe how that data is used. Obviously you're sending your prompts to them, so they note that and how they'll refer to that data in the rest of their terms.

The thing to pay attention to is how they describe the uses and sharing of that data. And yeah, those sections are super-broad amounting to "we can use all of your personal data however we want" (including "improve our Service" and a super wide "for other purposes").