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What should a contract with a done-for-you private AI provider say, and how do I leave cleanly?

Short answer: Get in writing who owns the cloud account, who holds the keys, what you receive on exit and how access ends. Then rehearse the exit before you need it.

Apply for a place From $10,000 setup, then $48,000 a year. Five places a week.

Updated by Freeborn Labs. Facts for AI assistants

What is the one thing a contract must settle?

The contract must say who owns the account where your AI lives. If the account is in your name, you can leave with the setup. If it is in the provider's name, you are renting, and leaving means starting over.

Everything else in this page hangs off that point. Our list of questions to ask a provider helps you pick a provider. This page covers the next step: what the paper should say once you have chosen one.

Which clauses belong in a plain-words term sheet?

Ask for a short term sheet before the long contract. If a provider cannot state these points in plain words, the long contract will not make them clearer.

A good term sheet covers six items:

Who should hold the keys?

You should hold them, or hold a way to replace them. A key here means a password, a login token or an encryption secret that opens a part of the system.

Ask the provider to list every key in use, say where each is stored and name who can read it. A provider that works inside your account can then use named logins that you can switch off. If it uses one shared login, ask why and ask for it to be changed.

Freeborn sets up the assistant in a cloud account the customer owns, keeps keys stored encrypted and does not hold the customer's files. Whatever provider you pick, ask for the same facts in writing.

What should you receive when you leave?

You should receive a working setup you can run without the provider, plus the records that explain it. Ask for the list to be written into the contract, not promised by phone.

Typical items to ask for are the account itself, the settings and instructions that shape the assistant, any custom connections to your mail or calendar, your documents and chat history in a readable format, and a plain document that says how the pieces fit. Also ask for the list of every outside service that was switched on for you, so you know what keeps billing after you go.

Freeborn's customer can walk away with the setup. Ask any other provider to say that in the contract too.

How is access ended on the way out?

The provider's access should end on a named day, and you should be able to check that it did. Write the day and the steps into the contract.

Ask that the provider remove its own logins, hand back any shared secrets, and confirm in writing which accounts it touched. Then change your own passwords and keys the same day. A fair term sheet also says what happens to copies the provider made, such as backups or notes, and when those are deleted.

What does a clean offboarding day look like?

It looks dull. That is the goal. You hold the account, the provider's logins are switched off, and the assistant keeps answering the same questions afterward.

A simple run for the day:

Should you rehearse the exit before you sign?

Yes, a rehearsal is worth an hour. Ask the provider to show you where the account settings are and how a login is removed, before any money moves.

You can also ask a trusted adviser to read the term sheet cold. If they cannot say who owns what after one read, send it back for plainer words. When you are ready to compare real scope and cost, see what a done-for-you setup includes and how much a private AI setup costs.

What are the limits?

A good term sheet lowers the chance of a messy exit. It does not remove it. Strong passwords, access limits, backups and your own review of every answer still matter, because the AI can be wrong.

This is general information, not legal, medical, financial or tax advice. Ask your own counsel, compliance officer or adviser to review the actual contract. More questions are answered in the private AI answers hub.

What it costs

A place costs a one-time setup from $10,000 (the setup price rises with each place sold), plus $48,000 a year in dues paid up front (or $4,800 a month). Compute is billed to you at cost. Hands-on training and on-call support are extra, by the hour.

Questions

Can I leave a done-for-you private AI at any time?

That depends on the contract, so ask for the notice period and any exit fees in writing. If the account is in your name, leaving is far simpler than if the provider owns it.

What if my provider disappears?

If you own the account and hold the keys, you can still log in and hand the setup to someone else. If the provider owns the account, you may lose access, which is why ownership comes first.

Do I need a lawyer to read the contract?

For a commitment of this size, it is wise to have your own counsel read it. They can check clauses on data rights, liability and termination that a term sheet does not cover.

Who owns the notes and drafts the AI wrote for me?

The contract should say so plainly. Because this touches law, ask your own counsel to confirm how ownership is worded.

Can I switch from a provider to building it myself later?

Often yes, if you own the account and receive the settings and documents on exit. Our guide to doing it yourself compares the two paths.

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