German Court Says Meta Can Use User Data to Train AI

The court ruled Meta is 'pursuing a legitimate end' by training AI with Facebook and Instagram user data. Kirill KUDRYAVTSEV / AFP
The court ruled Meta is 'pursuing a legitimate end' by training AI with Facebook and Instagram user data. Kirill KUDRYAVTSEV / AFP
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German Court Says Meta Can Use User Data to Train AI

The court ruled Meta is 'pursuing a legitimate end' by training AI with Facebook and Instagram user data. Kirill KUDRYAVTSEV / AFP
The court ruled Meta is 'pursuing a legitimate end' by training AI with Facebook and Instagram user data. Kirill KUDRYAVTSEV / AFP

A German court on Friday dismissed an injunction request brought by consumer protection groups to prevent US tech giant Meta from using user data from Facebook and Instagram to train artificial intelligence systems.
The higher regional court in Cologne concluded Meta, which owns both social media platforms, had not violated European Union law.

"Meta is pursuing a legitimate end by using the data to train artificial intelligence systems," the court said in a statement.

Feeding user data into AI training systems was allowed "even without the consent of those affected", it added.

Meta has announced plans to begin training AI models with data from Facebook and Instagram from Tuesday, said AFP.

The court said the balance of interests between the parties was in favor of allowing Meta to process user data to develop AI.

The training of AI systems "cannot be achieved by other equally effective, less intrusive means", the court said.

Among the reasons cited by judges was Facebook's intention to only use publicly available data that could also be found via search.

Meta had also "taken effective measures to significantly mitigate the impact" on users, the court said, including communicating the plans via its mobile apps.

The North Rhine-Westphalia Consumer Advice Center, which brought the case, said it still found the use of user data "highly problematic".

"There are still considerable doubts about the legality," the organization's chief, Wolfgang Schuldzinski, said in a statement.

The Vienna-based privacy campaign group Noyb said last week it had sent a cease-and-desist letter to Meta over the plans to use user data for AI training.

The letter was the first step ahead of a possible injunction request or class-action lawsuit against Meta, the group said.



Musk Says Tesla, Samsung Electronics Sign $16.5 Billion Chip Supply Deal 

The Tesla logo is seen at the company's stand during the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025. (AFP) 
The Tesla logo is seen at the company's stand during the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025. (AFP) 
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Musk Says Tesla, Samsung Electronics Sign $16.5 Billion Chip Supply Deal 

The Tesla logo is seen at the company's stand during the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025. (AFP) 
The Tesla logo is seen at the company's stand during the World Artificial Intelligence Conference (WAIC) at the Shanghai World Expo and Convention Center in Shanghai on July 28, 2025. (AFP) 

Tesla CEO Elon Musk said the US automaker had signed a $16.5 billion deal to source chips from Samsung Electronics, a move expected to bolster the South Korean tech giant's loss-making contract manufacturing business.

Samsung shares rose more than 4% after the news.

"Samsung's giant new Texas fab will be dedicated to making Tesla's next-generation AI6 chip. The strategic importance of this is hard to overstate," Musk said in a post on X on Monday.

If Musk was referring to Samsung's upcoming Taylor, Texas, plant, the deal could revive the project that has faced delays amid Samsung's struggles to retain and win major customers.

"Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house," Musk said on his social media platform.

Samsung had earlier announced the $16.5 billion chip supply deal without naming the client, saying the customer had requested confidentiality about the details of the deal, which will run through the end of 2033.

Three sources briefed about the matter told Reuters that Tesla was the customer for the deal.

The deal comes as Samsung faces mounting pressure in the race to produce artificial intelligence chips, where it trails rivals such as TSMC and SK Hynix. This lag has weighed heavily on its profits and share price.

Samsung, the world's top memory chip maker, also makes logic chips designed by customers through its foundry business.

Pak Yuak, an analyst at Kiwoom Securities, said the latest deal would help reduce losses at Samsung's foundry business, which he estimated exceeded 5 trillion won ($3.63 billion) in the first half of the year.

Analysts say Samsung has struggled with the defection of key clients to TSMC for advanced chips. TSMC counts Apple, Nvidia and Qualcomm among its customers.

The Samsung-Tesla deal may also be significant for South Korea, which is seeking US partnerships in chips and shipbuilding amid last-ditch efforts to reach a trade deal to eliminate or reduce potential 25% US tariffs.

Samsung is grappling to boost production yields of its latest 2-nanometer technology, but the order is unlikely to involve the cutting-edge tech, said Lee Min-hee, an analyst at BNK Investment & Securities.

Samsung has been losing market share to TSMC in contract manufacturing, underscoring technological challenges the firm faces in mastering advanced chip manufacturing to attract clients like Apple and Nvidia, analysts said.