The saved state is sent on each prompt, yes. Those who are fully aware of this would seek a local memory agent and a local llm, or at the very least a provider that promises no-logging.

Every sacrifice we make for convenience will be financially beneficial to the vendor, so we need to factor them out of the equation. Engineered context does mean a lot more tokens, so it will be more business for the vendor, but the vendors know there is much more money in saving your thoughts.

Privacy-first intelligence requires these two things at the bare minimum:

1) Your thoughts stay on your device

2) At worst, your thoughts pass through a no-logging environment on the server. Memory cannot live here because any context saved to a db is basically just logging.

3) Or slightly worse, your local memory agent only sends some prompts to a no-logging server.

The first two things will never be offered by the current megacapitalist.

Finally, the developer community should not be adopting things like Claude memory because we know. We’re not ignorant of the implications compared to non-technical people. We know what this data looks like, where it’s saved, how it’s passed around, and what it could be used for. We absolutely know better.