So if I ask Google's AI studio the wrong question, I might get my G-drive, Gmail, API access, Play store, YouTube channel, "login with Google" tokens, and more all ripped away instantly with no recourse?
Did Microsoft never run Microsoft Mail internally?
It was an email system that ran on top of file system. If I recall, mail clients connected over a networked drive to access mailboxes. So it was never regarded as being very scalable.
We did this a lot in the early 2000's. At the time I worked for a company with offices in Bellevue and we put our own hardware in full sized racks at a datacenter in the komo4 building in Seattle.
Because of proximity it was easy to run over and service the systems physically if needed, and we also used modem based KVM systems if we really needed to reboot a locked up system quickly (not sure that ever actually happened!).
I'm sure customer owner hardware place in a datacenter rack is still a major business
We really need an internet Bill of Rights. Google has too much power to delete your company from existence with no due process or recourse.
If any company controls some (high) percentage of a particular market, say web browsers, search, or e-commerce, or social media, the public's equal access should start to look more like a right and less like an at-will contract.
30 years ago, if a shop had a falling out with the landlord, it could move to the next building over and resume business. Now if you annoy eBay, Amazon or Walmart, you're locked out nationwide. If you're an Uber, Lyft, or Doordash (etc) gig worker and their bots decide they don't like you anymore, then sayonara sucker! Your account has been disabled, have a nice day and don't reapply.
Our regulatory structure and economies of scale encourage consolidation and scale and grant access to this market to these businesses, but we aren't protecting the now powerless individuals and small businesses who are randomly and needlessly tossed out with nobody to answer their pleas of desperation, no explanation of rules broken, and no opportunity to appeal with transparency.
First were the models. Then the APIs. Then the cost efficiencies. Right now the tooling and automated workflows. Next will be a frantic effort to "AI-Everything". A lot of things won't make the cut, but absolutely many tasks, whole jobs, and perhaps entire subsets of industries will flip over.
For example you might say no AI can write a completely tested, secure, fully functional mobile app with one prompt (yet). But look at the advancements in Cline, Claude code, MCPs, code execution environments, and other tooling in just the last 6 months.
The whole monkeys typewriters shakespeare thing starts to become viable.
This reminded me of Gates' "The Road Ahead" book (late 90s if I recall) prediction that marketers would eventually be able to pay a dime to get an email in your inbox, if only the future economy could figure out micro-transactions.
I agree with you that we're moving away from banner ads to some novel way of monetizing traffic, and therefore content published by authentic human beings.