Apple’s AI practices face scrutiny from shareholders ahead of its February 25 Annual Shareholder Meeting, with specific concerns about data privacy and partnerships with AI companies.
Key allegations: The National Legal and Policy Center (NLPC) has filed a proposal with the SEC questioning Apple’s approach to AI development and data collection practices.
- The proposal, listed as No. 4 in Apple’s 2025 proxy materials, calls for detailed reporting on AI data acquisition and ethics
- NLPC criticizes Apple for allegedly outsourcing “unethical practices” to partners while maintaining a privacy-friendly public image
- A particular focus is placed on Apple’s $25 billion partnership with Google, which represents 20% of Apple’s pretax profit
Current AI strategy: Apple has maintained a cautious approach to artificial intelligence development, emphasizing privacy and on-device processing capabilities.
- The company promotes its Private Cloud Compute model, designed to protect account data when using Apple Intelligence
- Third-party AI integration requires explicit user permission
- Apple has partnered with OpenAI’s ChatGPT and is exploring potential integration with Google’s Gemini
Specific concerns: The NLPC’s proposal highlights several areas requiring transparency and accountability.
- Risks associated with improperly obtained training data
- Privacy safeguards in AI development processes
- Compliance measures for AI-generated outputs
- The impact of partnerships with companies like Google, OpenAI, and potentially Meta on user privacy
Industry context: Apple’s position in the AI landscape differs from its competitors, who face their own challenges.
- OpenAI, Google, and Meta are currently dealing with lawsuits over alleged unauthorized data scraping
- Apple’s strategy of partnering with these companies while maintaining a privacy-focused image has drawn criticism
- The company’s approach has received praise from some analysts for cost-effectiveness in AI development
Looking ahead: While the proposal examination raises important questions about AI ethics and corporate responsibility, its immediate impact may be limited.
- The shareholder proposal is expected to fail, as Apple typically recommends against such measures
- The scrutiny highlights tensions between AI development, privacy protection, and corporate partnerships
- The debate underscores growing concerns about transparency in AI development among major tech companies
Critical perspective: The controversy highlights a potential disconnect between Apple’s privacy-first marketing and its strategic partnerships, raising questions about whether outsourcing AI development truly shields the company from ethical concerns about data collection and use.
Recent Stories
DOE fusion roadmap targets 2030s commercial deployment as AI drives $9B investment
The Department of Energy has released a new roadmap targeting commercial-scale fusion power deployment by the mid-2030s, though the plan lacks specific funding commitments and relies on scientific breakthroughs that have eluded researchers for decades. The strategy emphasizes public-private partnerships and positions AI as both a research tool and motivation for developing fusion energy to meet data centers' growing electricity demands. The big picture: The DOE's roadmap aims to "deliver the public infrastructure that supports the fusion private sector scale up in the 2030s," but acknowledges it cannot commit to specific funding levels and remains subject to Congressional appropriations. Why...
Oct 17, 2025Tying it all together: Credo’s purple cables power the $4B AI data center boom
Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...
Oct 17, 2025Vatican launches Latin American AI network for human development
The Vatican hosted a two-day conference bringing together 50 global experts to explore how artificial intelligence can advance peace, social justice, and human development. The event launched the Latin American AI Network for Integral Human Development and established principles for ethical AI governance that prioritize human dignity over technological advancement. What you should know: The Pontifical Academy of Social Sciences, the Vatican's research body for social issues, organized the "Digital Rerum Novarum" conference on October 16-17, combining academic research with practical AI applications. Participants included leading experts from MIT, Microsoft, Columbia University, the UN, and major European institutions. The conference...