The current situation is a bubble based on an over hyped extension of the cloud compute boom. Nearly a trillion dollars of capital expenditure over the past 5 years from major tech companies chasing down this white whale and filling up new data centers with Nvidia GPUs. With revenue caping out at maybe 45 billion annually across all of them for “AI” products and services, and that’s before even talking about ongoing operation costs such as power for the data centers, wages for people working on them, or the wages of people working to develop services to run on them.

None of this is making any fucking profit, and every attempt to find new revenue ether increases their costs even more or falls flat on its face the moment it is actually shipped. No one wants to call it out at higher levels because NVIDIA is holding up the whole fucking stock market right now, and them crashing out because everyone stoped buying new GPUs will hurt everyone else’s growth narrative.

Because it’s something where the current government can claim they’re “doing something” or “addressing a real problem” but it also doesn’t threaten the rich and powerful.

Going after Facebook would threaten the rich and powerful, for who it is an important tool for manipulating people, who think they can use it to mold culture to what they want it to be my breaking the minds of children.

The current UK government is desperate to say to the public that they’re governing and fixing problems, but they also really don’t want to piss off the rich and powerful.

Which is an absurd thing to do! Getting it in front of more people just increases their costs by creating more load on their data centers. At best it juices investor confidence by pushing up user numbers. It’s not converting people to payed subscriptions at any significant rate, and even then people paying the subscriptions are losing them money because they’re creating way more load than their subscriptions pay for.

It’s unlikely any of this will ever be profitable, the only one making profit from this right now is NVIDIA. Everyone else’s costs dwarf revenue, even just operational costs, not even counting capital expenditure to set this stuff up. None of these companies have a path to profitability, and most of the little revenue is coming from services burning investor money built upon other services that are also burning investor money, or temporary shenanigans like Microsoft trading OpenAI free compute time at their data centers in exchange for IP, or coreweave using their GPUs as collateral against loans to buy more GPUs that get collateralized in turn.

At best the deregulation makes things less unprofitable and drags the bubble out a little longer.

I think it’s likely that Microsoft will start turning it on by default, and resetting it with updates for people who have opted out. Much like they did with edge and Cortana, intentionally making it harder to choose not to use it.

More programs actively blocking it will make that harder, but I wonder how many will stick to their guns when pressured by Microsoft.

I suspect that Microsoft will ratchet up the pressure to force it on people as the gen AI bubble pops, an attempt to keep the narrative alive to keep up demand for their overbuilt GPU data centers.