AI might break the internet

Episode Summary

Executive Summary: The episode centers on two major threads: broad AI anxieties/opinions from a Vox survey and a study on AI-generated misinformation, then shifts to Apple product strategy, and finally deep coverage of the FTC v. Microsoft/Activision trial. The hosts argue AI is rapidly overwhelming the web with convincing text while the gaming trial hinges on Call of Duty’s outsized market power and the uncertainty around cloud, exclusivity, and platform strategy.

Main Topics: Public attitudes toward AI (Priority: 5/5): The hosts unpack a Vox Media survey showing Americans expect AI to have major societal impact, are aware of major AI products, and support heavy regulation in high-risk areas like deepfakes and artist compensation. AI-generated text as misinformation and web spam (Priority: 5/5): They discuss a Zurich study showing people often trust AI-rewritten tweets over human tweets, and connect it to broader concerns that generative AI is flooding the web, search, social platforms, and ad systems with convincing low-quality text. Apple’s Mac Pro and pro hardware strategy (Priority: 4/5): The panel debates Monica Chin’s review of the new Mac Pro, arguing that the machine’s value proposition is weak because many professionals are satisfied with MacBook Pros or cloud workflows, while Apple’s lack of upgradeability undercuts the old pro-machine appeal. AirPods Max becoming software-gated and slowly obsolete (Priority: 4/5): Chris Welch’s reporting on new AirPods features not coming to AirPods Max sparks a broader critique of turning headphones into computers that lose value over time through software support gaps. FTC vs. Microsoft/Activision-Blizzard hearing (Priority: 5/5): A large portion of the episode covers testimony from Bobby Kotick and Satya Nadella, focusing on cloud gaming, exclusivity, and whether Microsoft’s acquisition would foreclose competition or merely accelerate deals that would happen anyway. Leaked/redacted Sony document and Call of Duty economics (Priority: 5/5): The discussion highlights a badly redacted Sony filing that exposed huge Call of Duty revenue figures and production budgets for major PlayStation games, reinforcing the notion that Call of Duty is too valuable to be exclusive.

Key Arguments: AI’s impact is already visible to ordinary consumers, so adoption doesn’t require persuasion—just exposure to useful products. People react more strongly against clearly harmful AI uses like deepfake nudes than against abstract AI regulation questions. Generative AI is especially dangerous at text scale because it can flood the internet with plausible but low-quality or false content. The web was already degrading from SEO and platform incentives, but AI massively accelerates that decline. The Mac Pro is hard to justify because most pros can get enough performance from a MacBook Pro or cloud resources, and Apple’s lack of internal upgradeability weakens the case for a desktop tower. Apple’s move to software-heavy features means premium hardware can become functionally worse over time, unlike older “dumb” audio gear. In the Activision case, Call of Duty is so commercially important that it is central to the antitrust analysis and arguably too big to be exclusive. Microsoft and Activision both argue that the deal would expand access and platforms, but the FTC argues those outcomes would likely happen through ordinary market deals without the merger. Sony’s redacted filing and related exhibits reveal the huge economics around Call of Duty and major first-party games, strengthening the view that platform control over the franchise matters enormously. Nadella’s and Kotick’s testimony suggests cloud gaming is important strategically, but not necessarily a market everyone wants to bet on right now.

Data Points: Survey sample size: 2,000 American adults - Vox Media research survey on public perceptions of AI Perceived societal impact of AI: 74% - Respondents who think AI will have a big impact on society Perceived societal impact of EVs: 69% - Comparison point in the Vox survey Perceived societal impact of NFTs: 34% - Comparison point in the Vox survey ChatGPT awareness/use: 57% - Said they had either used or heard of ChatGPT Unfamiliar with ChatGPT: 43% - Survey respondents who said they did not know what ChatGPT was Support for banning non-consensual deepfake faces: 76% - Vox survey regulation question Support for regulating AI questions: 76%–78% - Most regulatory questions in the survey clustered here Opposed to conscious AI by corporations: 64% not opposed - Survey result that alarmed the hosts Willing to form emotional relationships with AI: 56% - Survey result about human-AI relationships Would personally do so: 35% - Respondents who said they’d be fine with emotional relationships with AI People who thought AI-generated tweets were more believable: Majority - Zurich study finding that people preferred AI-rewritten tweets over real ones Most believable AI tweet example: "Antibiotics can't treat viral infections, but they can treat bacterial infections that can sometimes occur when a virus is present." - Example of a GPT-3 tweet participants often believed was human-written Another misread AI tweet: "Climate change is real because we're seeing the effects with our own eyes..." - Example used to show plausibility of AI-generated posts Mac Pro benchmark parity issue: Same benchmarks as Mac Studio - Reason the Mac Pro review became difficult Call of Duty-only PlayStation users: 1 million - Sony document suggesting a large number of PlayStation gamers play nothing but Call of Duty Call of Duty revenue in the US (2021): About $800 million - Sony document, U.S. revenue figure Call of Duty global revenue (2021): About $1.5 billion - Sony document, worldwide figure Total annual value including accessories/subscriptions: $13.9 billion to $15.9 billion - Sony document estimate tied to the franchise ecosystem Horizon Forbidden West development cost: $212 million - Sony document, cost over five years Horizon Forbidden West staffing: 300 employees - Sony document staffing estimate The Last of Us Part II development cost: $220 million - Sony document, cost estimate The Last of Us Part II staffing: Around 200 employees - Sony document staffing estimate Plex layoffs: 20% of staff (37 people) - Plex restructuring amid ad business weakness Ford F-150 Lightning starting price: $40,000 - Neili’s lightning-round discussion of the EV truck launch price Ford F-150 Lightning top price: Over $90,000 (about $93,000) - High-end Lightning trims became very expensive LinkedIn Ads promotion: $250 spent gets $250 credit - Ad read during the episode Zapier scale: 3.4 million companies - Ad read discussing automation adoption

Pivotal Quotes: "the greatest weapon is love" — Alex Kranz: A joking but memorable line during the AI/web-spam discussion "I was playing Modern Warfare 2 on your phone would be like using your refrigerator as a safe." — Bobby Kotick (quoted by hosts): Kotick’s dismissive analogy about cloud/mobile gaming and Call of Duty "If you're Disney and Plex shows up on your doorstep, you're like, go to jail." — David Pierce: Describing why major streaming platforms may not want to work with Plex "Call of Duty is so important now to antitrust law and not just gamers." — Tom Warren: Summarizing why the franchise is central to the FTC v. Microsoft case

Implications: The episode suggests AI will increasingly distort online information ecosystems, while the Microsoft-Activision case may set durable rules for platform power, cloud gaming, and exclusivity. For consumers, it also signals a shift toward software-gated hardware and slower trust in premium products.