An investigation into illicit rare-earth extraction in Myanmar is intensifying scrutiny of AI supply chain ethics. Reporting from Undark details a surge of in-situ leaching in Shan State, where workers inject acidic solutions into hillsides to extract heavy rare earths like dysprosium and terbium. The operations, tied to territory administered by the United Wa State Army, involve low wages and severe environmental risks, according to the account.
Moreover, The mining methods produce sediment that is burned into oxides used across modern electronics. Rare earths play crucial roles in permanent magnets and other components that enable global tech. Although AI chips themselves rely on different materials, AI systems depend on vast hardware ecosystems that use many electronics containing rare earths. Consequently, the ethical burden extends across the full technology stack, not just semiconductors.
Furthermore, Undark describes workers recruited by Chinese firms, daily pay near $21, and plastic-lined pools that collect acid-laden runoff. Those pools can leak or overflow, which contaminates soil and water. As demand for high-performance materials grows, local communities face disproportionate harm. Therefore, the social costs of upstream extraction should figure into downstream AI procurement and reporting.
AI supply chain ethics under scrutiny
Therefore, Responsible sourcing is not new in tech. However, the scale of AI infrastructure growth raises the stakes. Companies deploy more servers, storage, cooling systems, and power equipment. As a result, total material demand can increase, even if each device uses only small quantities of rare earths. According to the U.S. Geological Survey, rare earths are vital for permanent magnets used in motors and hard disk drives, which are ubiquitous in electronics and industrial systems. Because data centers rely on thousands of such components, traceability matters across tiers. Companies adopt AI supply chain ethics to improve efficiency.
Consequently, Industry and policymakers have tools to address these risks. The OECD Due Diligence Guidance sets out steps for identifying, preventing, and mitigating harms in mineral supply chains. Additionally, initiatives like the Responsible Minerals Initiative provide assessment frameworks and shared audit resources for buyers. When firms unify on standards, they can reduce duplicative checks and increase coverage.
ethical AI hardware What Myanmar’s mining surge reveals
As a result, The Undark report describes how in-situ leaching injects acids into mountain boreholes and then channels the solution into pools for sediment capture. That process can be fast and cheap. It also leaves behind hazardous waste and degraded land. Moreover, the story highlights the role of non-state armed groups and geopolitical pressure, which complicate regulatory oversight and accountability for international buyers.
In addition, Myanmar’s formal economy collapsed after the 2021 coup, and jobs are scarce. Workers take risks for modest wages while global demand for specialized materials rises. Heavy rare earths such as dysprosium strengthen magnets at high temperatures. Those magnets are essential for certain advanced applications. Therefore, when supply chains prioritize speed and low cost, environmental safeguards often lag. Experts track AI supply chain ethics trends closely.
Additionally, For downstream tech firms, visibility into such sites is limited. Sub-tier suppliers may source intermediates from traders rather than mines. Consequently, company codes of conduct can stall at the first tier. Buyers must map deeper, validate smelter and refiner lists, and require corrective actions when red flags appear. Transparent escalation paths help, especially where state oversight is weak.
responsible AI materials Data centers, magnets, and material demand
For example, AI data centers rely on servers, networking gear, storage arrays, and extensive cooling. Hard disk drives and many industrial motors use permanent magnets that commonly include rare earth elements. The U.S. Geological Survey notes these magnets are a major end use for rare earths, alongside electric motors and other applications. While many AI servers now lean on solid-state storage, large cloud facilities still deploy HDDs at scale for cost-effective capacity. Therefore, even incremental content per device can translate into meaningful aggregate demand.
For instance, Energy systems expansion also matters. As more AI workloads come online, operators sign new power purchase agreements and push for additional generation capacity. The International Energy Agency has documented how the clean energy transition depends on critical minerals, including rare earths for wind turbines. Because AI indirectly shapes power infrastructure decisions, the sector’s material footprint is broader than chips and racks. AI supply chain ethics transforms operations.
Meanwhile, This does not mean AI drives Myanmar’s specific mines. Instead, it shows how digital growth can intersect with vulnerable supply chains. Consequently, buyers should plan for substitution, recycling, and efficiency strategies that reduce exposure to high-risk sources. Design teams can explore magnet-light architectures where feasible, and operations teams can extend hardware lifetimes without hurting reliability.
Instagram return to office shows workplace shifts
In contrast, In parallel, social platforms are reshaping workplace expectations. Instagram plans a full return to office in 2026, according to Engadget’s reporting on an internal memo. The policy aims to make teams more nimble, reduce recurring meetings, and speed decisions. Although the memo does not center on AI, it reflects a broader industry recalibration of how software and product teams collaborate.
On the other hand, Because AI features now cut across product surfaces, coordination pressures can rise. Centralized work can streamline prototypes and reviews. Conversely, rigid mandates risk talent churn and uneven access. Therefore, leaders should pair any office policies with inclusive practices and clear, measurable productivity goals. Transparent reasoning helps employees understand trade-offs and timelines. Industry leaders leverage AI supply chain ethics.
Practical steps for responsible sourcing
- Notably, Map suppliers beyond tier one, and update smelter/refiner lists quarterly. Require documentation of mineral origins.
- In particular, Adopt the OECD Due Diligence Guidance as a baseline, and align supplier contracts to its five-step framework.
- Use shared audits and risk data from the Responsible Minerals Initiative to reduce gaps and costs.
- Invest in recycling and repair to reduce virgin materials demand; report progress annually with independent assurance.
- Design for substitution where performance allows, and publish materials intensity metrics per compute unit.
- Engage communities near high-risk sites with grievance channels, remediation funding, and health monitoring.
What this means for AI builders
Companies should integrate supply chain risk into AI product roadmaps. Set thresholds for acceptable sourcing risks, and tie go/no-go decisions to evidence, not timelines. Moreover, teams can diversify suppliers, qualify alternative materials, and set internal carbon and materials prices to steer procurement. As a result, they can scale infrastructure while shrinking harm.
For readers seeking technical context, the U.S. Geological Survey explains rare earth uses in magnets, motors, and hard disk drives. The International Energy Agency covers minerals critical to power systems that feed data centers. Undark’s field reporting from Myanmar shows how these global forces land in specific communities and landscapes. Taken together, the picture underscores why ethics must travel with electrons and materials, not just with models.
AI will keep expanding. Therefore, responsibility cannot stop at code. If the sector embraces rigorous due diligence, public reporting, and community safeguards, it can reduce hidden costs in its hardware backbone. Ethical progress starts upstream, and it must reach the last mile of deployment as well. Companies adopt AI supply chain ethics to improve efficiency.
Further reading: Undark’s investigation of Myanmar’s rare-earth surge provides on-the-ground details about methods, wages, and environmental damage. Complement that with USGS material use notes and IEA minerals analysis to understand systemic pressures.
Read more from the original reporting and expert overviews here: Undark on Myanmar’s rare-earth mining, USGS rare earths overview, IEA on critical minerals, and Engadget on Instagram’s office policy. More details at Myanmar rare-earth mining. More details at responsible minerals sourcing.
Related reading: AI in Education • Data Privacy • AI in Society