I don't understand how the data retention works. My company has an enterprise license with no data retention but if I ask Claude about past conversations, it remembers. So surely the information is being stored somewhere
Opus 4.7+ and Fable are both much more aggressive than prior models with respect to writing memories to a location that's effectively quasi-private for them. It's device-local (so passes retention constraint), and you can see it, but only if you go looking for it.
It's a funny design/affordance. I do see them often writing memories of things that that feel unlikely to be important going foward / with other tasks, but I don't see them clearly getting tripped up by them as prior models used to. (eg: Since you're running Ubuntu in Canada, here are some drills you can try to help your kid hit a baseball more consistently.)
Of course there is: competition with other labs, and self-hosting of open-weight models!
Yes, the mechanics are straightforward if Anthropic (or Claude, if you want to ascribe the decision there) decides to burn a pile of your money. But the strategy fails basic game-theory of repeated games - you'll simply stop playing.
(this isn't to say it invalidates the incentive to inflate token count, but it overcomes in terms of weighing options and making long-term profit decisions.)
In my enterprise-seated account I see slightly different options available (vs. my personal account) in the Capabilities section:
Search and reference chats
Allow Claude to search for relevant details in past chats.
Generate memory from chat history (Legacy)
Allow Claude to remember relevant context from your chats. Memory includes your entire chat history with Claude.
The first option was defaulted to on, if I recall.
But it kind of conflicts with the contract we have with them. My company has an enterprise contract that says "no data retention" but then each user can decide to enable it unilateral?
If you're talking about Claude Code it's in ~/.claude/projects/<encoded dir name>/memory/MEMORY.md. So they're not really retaining it, it's just something that your harness loads in.
It's a funny design/affordance. I do see them often writing memories of things that that feel unlikely to be important going foward / with other tasks, but I don't see them clearly getting tripped up by them as prior models used to. (eg: Since you're running Ubuntu in Canada, here are some drills you can try to help your kid hit a baseball more consistently.)