Supporting Statement: Meta Platforms, Inc. (“Meta” or the “Company”) is a major player in the AI arms race, which has helped push the Company to one of the highest market capitalizations in the world. Meta has integrated AI into its advertising business and social media products. Unlike its competitors, Meta’s primary AI models are somewhat open source. Rather than monetize its AI models themselves, Meta’s strategy is to use its AI models to further monetize its social media and data empire. Meta has drawn attention for its massive AI spending spree. Given Meta’s history of privacy violations and unethical data practices, shareholders and consumers should be concerned that Meta’s data-driven AI strategy will create new opportunities for misconduct. Past abuses include: • Meta’s updated privacy policy now allows the Company to use a wide range of personal data for developing and improving its AI technologies, after being paused for roughly a year • Meta was subject to a record €1.2 billion ($1.3 billion) fine for breaching the European Union’s General Data Protection Regulation • A coalition of European consumer rights groups have accused Meta of collecting “an unnecessary amount of information on its users — such as data used to infer their sexual orientation, emotional state or even their susceptibility to addiction — which they are unable to freely consent to.” These are just a few examples in Meta’s long history of privacy abuses. Prioritizing data ethics in Meta’s AI development will help avoid harmful reputational, fiduciary, regulatory and litigative consequences. Developers who prioritize ethical data usage will reap the benefits of consumer trust, while those that do not will suffer. Meta’s position in the AI arms race, and its associated historic valuation, hang in the balance