<h1>Legal and regulatory risks for national AI platform claiming local data processing, zero retention, on-premise deployment, and sovereign models</h1> A domestic AI developer announced a new national AI platform claiming India-first data processing, strict compliance with local jurisdiction, zero data retention options, on-premises enterprise deployments, and multilingual, India-optimized models marketed as low-cost and sovereign. The release highlights planned proprietary foundation models, developer APIs, and enterprise features while promising secure data vaults and industry-specific training. Legal considerations include potential regulatory scrutiny over data protection and privacy claims, consumer protection and advertising accuracy obligations for performance and pricing assertions, contractual and liability issues for government and enterprise on-premise deployments, and cross-border expansion risks tied to differing international data and IP regimes.