LONDON, U.K.: A group of Alphabet shareholders is stepping up pressure on the company to clarify how it monitors the use of its cloud and artificial intelligence technologies, particularly in government and surveillance contexts.

In a letter seen by Reuters, investors representing a combined US$1.15 trillion in assets asked for a meeting with Alphabet management after the company rejected a proposal seeking more transparency on how it oversees such risks.

"Cloud-based services are a growing segment, and it's getting more and more militarized," said Marcela Pinilla, director of sustainable investing at Zevin Asset Management, which authored the letter signed by dozens of institutional investors. "We don't see that they have strict controls over intervention in high-risk contexts. That's very risky for them if they don't have oversight of how their infrastructure is being used."

The signatories, which together hold about $2.2 billion worth of Alphabet shares, are seeking more details on how the company assesses potential misuse of its technology and whether it has the authority to intervene in sensitive government contracts.

Alphabet has defended its current approach. In opposing the shareholder resolution, the company said it maintains a "robust, multi-layered framework for data privacy and security" and that existing disclosures "already provide meaningful transparency around government access to data". It added that it has "rigorous oversight" of related risks and that additional reporting would be "duplicative and an ineffective use of our resources".

The dispute reflects a broader push by investors across the tech sector to strengthen governance of AI and cloud services as they become more embedded in military and public-sector operations. Companies including Microsoft, Amazon, and Apple have faced similar scrutiny.

Concerns cited in the letter include Google's work with U.S. immigration authorities, its involvement in Project Nimbus, a $1.2 billion cloud contract with Israel, and operations in Saudi Arabia. Investors also pointed to a 2025 revision of Alphabet's AI Principles that removed restrictions on certain weapons and surveillance applications.

Those changes, the letter said, increase the need for stronger contractual safeguards and board-level oversight.

Regulatory risks are also a concern. Investors warned that misuse of Alphabet's technology could lead to legal challenges or fines, including penalties of up to 4 percent of revenue under Europe's General Data Protection Regulation.

The issue has already surfaced at shareholder meetings. A resolution calling for more disclosure on human rights due diligence received 11.9 percent of independent votes last year but only 4.5 percent overall, reflecting the influence of company insiders such as founders Larry Page and Sergey Brin.

Frustration among investors appears to be growing. "We've given the company plenty of chances to engage in one-on-one or small group dialogue, and they haven't come to the table," said Lauren Compere, head of stewardship at Boston Common Asset Management.