Earlier quoted context omitted.
You are right. It is related to privacy, but its not the whole story. Thats what I am trying to say. Running FHE will not magically solve the "data leakage" problem of your AI models, and I believe that the people/companies who don't make that distinction are misleading.
This isn't an area I know much about so I'll stay out of the main conversation, but would like to point out that considering you wrote "completely unrelated to privacy" in your first comment, following it with "It is related to privacy, but its not the whole story. Thats what I am trying to say." makes me unsure what your point is or if you actually mean or understand it. Sorry for being blunt.
Yes, when I wrote the comment I had in mind "output" privacy while FHE is dealing with "input" privacy. It is related to privacy, but not in the way most people think about it.
If you go to a random person and ask them about privacy they will not think about the threat model of a cloud provider leaking their data, but they will think of the thread model of a pharma company knowing exactly what drug they bought and when. That notion of privacy is not covered by FHE(alone). And even the first notion of privacy is covered only if the FHE program has a way to attest itself so you know that what you expect to run is indeed what is running.