This chapter explores the ethical dimensions of artificial intelligence (AI) as deployed within cloud computing environments. This chapter aims to critically assess ethical challenges such as algorithmic bias, surveillance, lack of transparency in AI models, and user consent within multi-tenant cloud platforms. By analyzing case studies and existing regulatory frameworks (e.g., GDPR, AI Act), the chapter will propose a set of guiding principles for ethically aligning AI deployment in the cloud. Special attention will be given to issues of shared responsibility among cloud providers, developers, and users, as well as the implications of AI-as-a-Service (AIaaS). This concludes with a framework for ethical governance that organizations can adopt when integrating AI into cloud-based architectures. Target Audience could be Cloud security architects, AI/ML developers, Technology policymakers, Academics in computer ethics and cybersecurity, Legal and compliance professionals in tech.