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.)

You most likely are referring to the local jsonl files where claude has your sessions etc stored.

It could just be the memory features.

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.

Not Claude Code. Claude in the browser

Likely in memory files stored locally

I'm talking about the website. It's not local because I can see my chats in any device

Claude Code? It stores a memory.md file.