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Can generative AI run inside a customer's Google Cloud environment?

Yes. Organizations can design generative AI applications so application services, retrieval, data stores, identity controls, logging, and many supporting components run inside their own Google Cloud organization and projects.

In practical terms

The exact boundary depends on the Google Cloud services selected, network design, model endpoint, region, encryption approach, and governance requirements. The important design question is which controls the customer must own directly and which controls are provided by the cloud service.

Sources & evidence