Re: They copied all the source code, entered it into ChatGPT, and inquired about a solution
"And if everything that gets asked of it also gets re-ingested back into the model, then anything commercially sensitive will automatically become available to everyone else who uses it, making it a total no-go area for anything to do with your business if you have any sense."
Everything said during a session is not ingested into this model, because the model can't do that. It is trained once and if you want to put some more data in, you have to start training it again from scratch, so that never happens. That's why GPT tends to be at least a few months out of date and can't explain anything that involves something happening recently. This means that if you put in some fact it didn't already know, it's not going to show up in anyone else's conversations, nor even yours if you have a later one. That is not a risk.
What still is a risk is that you've still sent a bunch of data to a different company without analyzing what they say they're going to do with it and what they actually do. Nothing prevents them from using that to train the next version of the chatbot, being hacked, or selling your conversation history, so unless you have a legal contract, that could still be a risk.