Meta in row after sacking workers who say they saw smart glasses users having sex

Meta terminated its AI training contract with Kenyan contractor Sama after reports that subcontracted workers were asked to review intimate videos captured by Meta smart glasses. Sama says the termination will lead to 1,108 redundancies and rejects Meta’s claim it failed to meet standards; Meta says it paused the relationship while investigating. UK and Kenyan data-protection regulators have contacted Meta, raising privacy and oversight risks. For investors in META.OQ, the story raises reputational and regulatory risk to Meta’s AI initiatives, potential operational disruption to data-labeling pipelines and possible future compliance costs or fines, though no direct financial impact has been disclosed. Near-term market reaction is likely driven by sentiment around governance and privacy exposure rather than earnings implications.