Given Google is already doing surreptitious stuff and is generally anti-privacy, it ought to look at stop doing those first. Stealing from people and doing "good" with that is not an excuse for stealing, especially when most of the victims are common folk (even if one follows a Robin Hood principle).
Also, I didn't get the part about Google "collecting anonymized data". Google collects precise, personally identifiable data because that's what pays the bills for its chosen business model (similar to Facebook, which is far worse). Anonymization may happen down the line for certain purposes and anonymized data may be all that Google is able to get from certain sources.
"The defendant is already doing that (committing crimes), wouldn't it be better if we permitted them to continue doing so as long as they're putting a portion of their spoils to good use?"
And don't forget to pat them on the back for their community service.
Even that is a very generous analogy, as it assumes that Google's AI contest will actually result in outcomes that produce some social benefit, rather than a few temporary initiatives that look good, provide near-zero real benefit to society, and really provide Google with technical AI innovations that are of some small use to their business.
You may not consider collecting "anonymised" data to be a bad thing, but you'll note that you inexplicably introduced the "anonymised" descriptor twisting the original commenter's "sensitive data"!?