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The rise of artificial intelligence (AI) has sparked both promises and perils - some proven, others projected. On one hand, AI offers tremendous potential to advance societal good, from increasing food productivity and improving healthcare to predicting storm paths and combating pandemics. On the other hand, the widespread use of AI tools has raised various ethical concerns: displacing jobs, diminishing human skills, discriminating against certain groups, undermining privacy, enabling undue surveillance, lacking transparency, and more. Instead of answering what the moral principles for AI should be or how to make it more "ethical," this course steps back to ask more fundamental questions: Where do the ethical bearings of AI originate? How do such automated systems become moral or immoral in the first place? On what grounds do we consider AI to be beneficial or harmful? In this course, we will unpack the ethical issues surrounding AI by exploring the basic mechanisms of how AI systems work, examining assumptions about AI's capabilities and limitations, and analyzing the ways humans interact with AI systems. After all, any hope or fear we hold about something is rooted in what we understand - or misunderstand - about it.