---
title: "The $20 Billion AI Black Box and the Data You Thought Was Private"
description: "Key quote: \"Because no Defendant in this matter has served on Plaintiff either an answer or a motion for summary judgment as of the filing of this Notice, Plaintiff may dismiss this matter without..."
url: https://kaynemcgladrey.com/the-20-billion-ai-black-box-and-the-data-you-thought-was-private/
date: 2026-05-06
modified: 2026-05-06
author: "Kayne"
image: https://kaynemcgladrey.com/wp-content/uploads/2026/05/Case-326-cv-02803-PLAINTIFFS-NOTICE-OF-DISMISSAL-WITHOUT-PREJUDICE-PURSUANT-TO-RULE-41a1_1.webp
categories: ["Articles"]
type: post
lang: en
---

# The $20 Billion AI Black Box and the Data You Thought Was Private

!(https://kaynemcgladrey.com/wp-content/uploads/2026/05/Case-326-cv-02803-PLAINTIFFS-NOTICE-OF-DISMISSAL-WITHOUT-PREJUDICE-PURSUANT-TO-RULE-41a1_1-1024x524.webp)

**Key quote**:

> “Because no Defendant in this matter has served on Plaintiff either an answer or a motion for summary judgment as of the filing of this Notice, Plaintiff may dismiss this matter without prejudice as a matter of right.”

**Why it matters**: I was tracking (https://www.courtlistener.com/docket/73124783/noel-v-perplexity-ai-inc/) because it potentially exposed an uncomfortable economic reality: when you chat with Perplexity about your taxes or health, that data might not just be sitting in a silo. It was allegedly flowing to Meta and Google via “undetectable” trackers, even in Incognito mode, to fuel ad targeting and AI training. The plaintiff, David Noel, filed a 135-page complaint in March 2026 detailing how a $20 billion valuation company might be monetizing our most vulnerable moments. The sudden (https://storage.courtlistener.com/recap/gov.uscourts.cand.466955/gov.uscourts.cand.466955.33.0.pdf) on May 1, 2026, feels less like a defeat and more like a tactical pause. With courts recently rejecting similar claims because data wasn’t technically “in transit”, Noel’s team likely needs to reframe the argument around the “mere capability” theory established in (https://www.courtlistener.com/docket/67907531/in-re-google-cloud-contact-center-ai-privacy-litigation/) (another case I’m tracking). Until that refiling happens, we are left guessing if our private prompts are being used for better targeted advertising.