Also, serious cloud providers (besides using server-grade hardware) have to follow proper equipment destruction and recycling procedures--Azure datacenters, for instance, used to have an on-site industrial shredder for disks (which were nevertheless hardware encrypted, but any failing storage was destroyed anyway).

In this case, there’s no indication of that and it’s so poorly handled that it radiates a startup winging it where they “didn’t have time” to hire anyone with a clue since the AI gold rush was right there. Given the reported healthcare data this seems like an especially bad choice.