It does not mean that at all. Nothing about choosing to release a model for free or not has any bearing on whether or not the app will respect the privacy of its users.

OpenAI could feel like they’re making enough money off of their proprietary model that they don’t need to collect data (I’m not saying this is likely), while DeepSeek could have released the model for free hoping mass adoption leads to more app downloads and more data to harvest. I don’t assume either has good intentions.