Amazon and others are done keeping data center deals secret. Is it enough to build trust?
Quick Answer
Amazon will no longer use NDAs in data center negotiations, following Microsoft's lead, aiming to rebuild trust amid community backlash against AI infrastructure.
Quick Take
This shift comes as startups seek consumer access to personal data, raising questions about trust in AI services.
Key Points
- Amazon's decision follows a similar move by Microsoft earlier this year.
- Secrecy around data center deals has led to community opposition and moratoriums.
- Startups are betting on consumer willingness to share personal data with AI agents.
- The Equity podcast discusses the implications of ditching NDAs for trust-building.
- Trust may become a key product for personal AI startups moving forward.
DeepSignal Analysis
What happened
Amazon has announced it will cease using non-disclosure agreements (NDAs) in negotiations for data center deals with local governments. This decision follows a similar policy change by Microsoft earlier in the year. The move aims to address community concerns regarding the transparency of AI infrastructure projects.
Key evidence
- Amazon will stop using NDAs when negotiating data center deals with local governments, a shift that follows Microsoft's earlier decision.
- Community backlash against AI infrastructure has resulted in hundreds of proposed and enacted moratoriums in cities from New York to San Francisco.
- A growing number of startups are attempting to gain consumer access to personal data, including inboxes and credit cards, which raises trust issues in AI services.
Why it matters
The decision to eliminate NDAs may enhance transparency in data center negotiations, potentially rebuilding trust with local communities. As AI infrastructure faces increasing scrutiny, companies like Amazon and Microsoft are responding to public concerns. The success of personal AI startups may hinge on their ability to establish trust with consumers, especially as they seek access to sensitive personal data.
📖 Reader Mode
~2 min readAmazon says it will stop using NDAs when negotiating data center deals with local governments, following a similar move from Microsoft earlier this year. Secrecy has fueled community backlash against AI infrastructure, with opposition leading to hundreds of proposed and enacted moratoriums from New York to San Francisco. Meanwhile, a wave of startups is betting that consumers will hand AI agents access to their inboxes, files, and credit cards — if they can get websites to let them in.
On this episode of TechCrunch’s Equity podcast, Anthony Ha, Sean O’Kane, and Rebecca Bellan dig into whether ditching NDAs will change how data center deals get done, why trust may be the real product for personal AI startups, plus a couple of deals of the week.
Subscribe to Equity on YouTube, Apple Podcasts, Overcast, Spotify and all the casts. You can also follow Equity on X and Threads, at @EquityPod.
Topics
Theresa Loconsolo is an audio producer at TechCrunch focusing on Equity, the network’s flagship podcast. Before joining TechCrunch in 2022, she was one of 2 producers at a four-station conglomerate where she wrote, recorded, voiced and edited content, and engineered live performances and interviews from guests like lovelytheband. Theresa is based in New Jersey and holds a bachelors degree in Communication from Monmouth University.
You can contact or verify outreach from Theresa by emailing [email protected].
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