Meta Gets 11 EU Complaints Over Use of Personal Data to Train AI Models

Artificial Intelligence words are seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration
Artificial Intelligence words are seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration
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Meta Gets 11 EU Complaints Over Use of Personal Data to Train AI Models

Artificial Intelligence words are seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration
Artificial Intelligence words are seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration

Meta Platforms was hit with 11 complaints on Thursday over proposed changes that would see it use personal data to train its artificial intelligence models without asking for consent, which may breach European Union privacy rules.
Advocacy group NOYB (none of your business) urged national privacy watchdogs to act immediately to halt such use, saying recent changes in Meta's privacy policy, which come into force on June 26, would allow it to use years of personal posts, private images or online tracking data for its AI technology, Reuters said.
NOYB has already filed several complaints against Meta and other Big Tech companies over alleged breaches of the EU's General Data Protection Regulation (GDPR) which threatens fines up to 4% of a company's total global turnover for violations.
Meta has cited a legitimate interest for using users' data to train and develop its generative AI models and other AI tools, which can be shared with third parties.
NOYB founder Max Schrems said in a statement that Europe's top court had already ruled on the issue in 2021.
"The European Court of Justice (CJEU) has already made it clear that Meta has no 'legitimate interest' to override users' right to data protection when it comes to advertising," he said.
"Yet the company is trying to use the same arguments for the training of undefined 'AI technology'. It seems that Meta is once again blatantly ignoring the judgements of the CJEU," Schrems said, adding that opting out was extremely complicated.
"Shifting the responsibility to the user is completely absurd. The law requires Meta to get opt-in consent, not to provide a hidden and misleading opt-out form," Schrems said, adding: "If Meta wants to use your data, they have to ask for your permission. Instead, they made users beg to be excluded".
NOYB asked data protection authorities in Austria, Belgium, France, Germany, Greece, Italy, Ireland, the Netherlands, Norway, Poland and Spain to launch an urgency procedure because of the imminent changes.



Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
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Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)

Dell Technologies raised its annual revenue and profit forecasts on Thursday, buoyed by demand for its AI-optimized servers that are powered by Nvidia's powerful chips, sending its shares up about 3% in extended trading.

Dell's infrastructure solutions group, which includes Nvidia-powered servers, surged 38% to a record revenue of $11.65 billion in the second quarter.

The company's servers are engineered to handle AI systems' intense computational demands, including training large language models.

"Enterprise remains a significant opportunity for us, as many are still in the early stages of AI adoption," Chief Operating Officer Jeff Clarke said in a post-earnings call.

Clarke said that Dell sees an emerging opportunity in "sovereign AI" by leveraging the company's strong relationships with governments globally.

Nvidia on Wednesday said nations building AI models in their own languages were turning to its chips, and that this would contribute about low double-digit billions to its revenue in the financial year ending in January 2025.

Nvidia CEO Jensen Huang called out the partnership with Dell earlier this year, saying they were helping businesses create their own "AI factories."

Dell's stock has risen 45% this year.

Dell said on Thursday it now expects annual revenue outlook to be between $95.5 billion and $98.5 billion, up from $93.5 billion and $97.5 billion previously. It also raised its annual adjusted profit per share forecast to $7.80, plus or minus 25 cents.

Demand for its AI-optimized servers rose about 23% sequentially to $3.2 billion in the second quarter. The backlog for these AI servers was $3.8 billion.

"Our pipeline has grown to several multiples of our backlog," Clarke said in a statement.

Revenue for the second quarter ended Aug. 2 rose about 9% to $25.03 billion, beating analysts' average estimate of $24.14 billion, according to LSEG data. It reported adjusted profit per share of $1.89 per share, compared with estimates of $1.71 per share.

While AI server demand soared, Dell's PC business struggled, losing market share to rivals. However, a strong refresh cycle for

AI PCs are expected next year after Microsoft ends support for Windows 10.

Revenue for the client solutions group - home to PCs - fell about 4% to $12.41 billion.

"Dell lost PC shipment shares in key markets in the second quarter. It is the top vendor in the US business market, but its competitors have shown growth and gained more shares than they did a year ago," said Mikako Kitagawa, director analyst at Gartner.

The company took a $328 million charge for workforce reductions in the second quarter.

Separately, Reuters exclusively reported earlier on Thursday that Dell is again exploring a possible sale of cybersecurity firm SecureWorks, following previous unsuccessful attempts to find a buyer.