For context: it already saved your data as you had acces to your previous chats. Then came the memory feature, which meant they saved like a summary in to a new dataset (eg ‘the user lives in country x’ and ‘the user doesn’t like birthdays’), so you are right it does save it already. The news is that they will now the bot will acces more of your chat history, I think when they write ChatGPT they mean it as ‘your personal chatbot’ instead of ‘the company that offers the chatbot’.
Yeah I don’t think they encrypt it anyway so I guess if they would deny a governments request they might still find a way to get to data like this.