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They are typically either proxies to other cloud AI providers or hosted on their own infra, unencrypted. It's pretty much a "we're a vpn that doesn't keep logs" kind of relationship.
Ours uses verifiable techniques to ensure that not only we can't inspect or tamper with it, but it also secures the AI chat all the way to the GPU model. So in no way is the chat viewed unencrypted anywhere except when you decrypt and view it yourself.