So who do you trust? A small mom and pop software biz?
Generally speaking, yes, relative to the giants. Smallsoft co at least isn't going to monetize every bit of knowledge about you directly. They'll probably leak stuff to chatgpt and so on, but it depends on the business purpose whether I'd be worried about that.
Microsoft has an incredibly abysmal track record. They really shouldn't be trusted.
I'd rather be a big fish in a small pond than a minnow in Microsoft's ocean.