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Selfhosted
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FOSS just means the software is open source. As I said, you can self host ZeroTier and not involve their servers (if you're not doing things commercially, you pay for the license but still run your own controllers, or you use an older version which has been automatically relicensed by the change date to Apache 2.0).
That said, the traffic is peer-to-peer, in the majority of use cases there servers are acting as a bit more than syncthing's servers (acting to facilitate the connection between two devices that want to talk together). See the other comment for some more thoughts here.