They actually don't explain it in the article. The author doesn't seem to understand why there is a claim of e2e chat history, and zero-access for chats. The point of zero access is trust. You need to trust the provider to do it, because it's not cryptographically veritable. Upstream there is no encryption, and zero-access means providing the service (usually, unencrypted), then encrypting and discarding the plaintext.
Of course the model needs to have access to the context in plaintext, exactly like proton has access to emails sent to non-PGP addresses. What they can do is encrypt the chat histories, because these don't need active processing, and encrypt on the fly the communication between the model (which needs plaintext access) and the client. The same is what happens with scribe.
I personally can't stand LLMs, I am waiting eagerly for this bubble to collapse, but this article is essentially a nothing burger.
Things change. They are doing it because Switzerland is proposing legislation that would definitely make that claim untrue. Europe is no paradise, especially certain countries, but it still makes sense.
From the lumo announcement: