This may be out of date but in this video by Lawful Masses lawyers are concerned that software AI tools which somehow (I don't recall) help them understand a case. This issue is the AI should not use information sourced from another client's confidential case/documents to inform them about another case but they don't know how it works. Responses from Microsoft were not forthcoming. I would argue they can't know unless they have access to the source code to verify what any (local) AI can do (not personally do it, but a trusted 3rd party audit which isn't behind closed doors).

Just download and host it yourself and no outage.

I can think of a third red flag but it's kinda just the first red flag again.

Huawei was uniquely, specifically, forced out of the US market around the time they were completing for 5G Tower standards.

Sinking ship.

Inevitable, really. And zero surprise it's coming out of China.