More Thoughts On Apple’s Price Increases: The AI Tax

The AI Tax is about more than the cost of a computer

Now that the dust is settling a bit after Apple unsurprisingly announced price increases across its hardware lineup, I have to say that I’m quite bemused to see the pocket book hit being called the AI Tax

I wasn’t clever enough to use that descriptor when I posted about the news shortly after the announcement, but I had been paying enough attention to immediately point the finger of blame at the costs associated with Artificial Intelligence. I think Jonny Evans was the first to coin the phrase AI Tax. For what it’s worth, I hope the phrase AI Tax sticks. Sticks hard and deep. And twists the knife. Because it’s going to affect much more than just the cost of MacBooks, iPads, Apple TVs, and other gear designed in California.

While other tech companies had already started raising prices due to the AI Tax, (talk to anyone in the gaming market) Apple’s announcement is one that brought real shivers and shakes to consumers, the stock market, and boardrooms around the globe. Whether mostly myth or prescient business practices, Apple’s reputation for being ahead of the curve when it comes to purchasing large supplies of chips to withstand market pressures is and was such that tech companies in other sectors often found themselves facing sold out inventories or higher prices when it came time to make their orders. The “Apple Tax” extended far beyond the high cost of Apple products.

That rep and Apple’s stock took a dive on the news. Apple recorded its second biggest market drop in its history, dragging the NASDAQ down with it. Heading into the weekend there’s consternation brewing about all of the chip releated businesses going forward. (Hint: that’s most businesses these days.) But then again, the stock market is not much more than a wild ride in an aging prediction market, so who knows how that will unfold as a holiday week begins on Monday.

Word came via The Financial Times Friday night that Tim Cook was calling in some chits on chips with the Trump administration, attempting to circumvent chip bans balled up in the trade war to and fro with China. If successful, that would allow Apple to buy banned chips that the Pentagon is hesitant about, given that they are built by state controlled Chinese companies. According to the report this lobbying had been going on for a month or so prior to Cook’s first warning a week before the price hike announcement on Thursday. 

The timing hints at a bit of public hardball lobbying from Apple. (Note that the price increase announcement wasn’t a Friday news dump after the market closed. However, The Financial Times article came after no known action from the administration post Apple’s announcement.) Shake the markets and try to wrest the attention of the administration fighting losing battles of its own making with bodies of water in the Middle East and in its own backyard. I’m almost surprised Apple hasn’t been called a vandal yet.

As I said earlier, this is going to have far reaching implications beyond the consumer gadget markets. Chip capacity has to increase, or the demand for higher bandwidth memory has to decrease before any of the predictions that this will subside in a few years. (There’s a good read on this from Imran Valiani here.) On the current trajectory, fueled by still increasing hype to combat building blowback, I don’t see that timeline materializing. This news might bobble the bubble, but I don’t think it’s ready to pop.

Costs are going to rise across the board. It’s not just consumers that purchase computers who will take the hit. And it’s not just the purchase of computers that will drive an inflationary spiral. Yep, that’s the I-word that no one likes to hear, especially politicians. Everything is a computer these days, or at least has some form of chip in it. And, in my opinion, too many companies have jumped on the AI bandwagon far too soon to understand the long term ramificatinos. All of those costs will be passed down the line to consumer pocket books.

I also don’t think we’re going to see these price pressures subside to pre-AI Tax levels. I’m old enough to remember when new cars used to have price ranges well below $5,000. That obviously makes me prehistoric, but I can remember watching The Price is Right featuring cars as the grand prize with contestants guaranteeing at least their first guess was accurate by chosing the number two for cars that would be priced at $2995. That’s a memory that doesn’t require a chip. Although streaming those old shows does.

Like it or not, Apple’s success since the launch of the iPhone, has been a key piece of U.S and global economic growth with much of the tech sector following along and prospering in its wake. Apple’s recent announcements are probably one day going to be viewed as just as big a marker going forward as the release of that first iPhone.

It feels to me that we’re entering into a price curve trajectory for computing on all levels that will follow a similar trajectory as the automobile market. The financial markets will find ways to love it as financing will become a key driver to cover costs while the markets get used to price points for signature hardware starting much higher than the $1000 price point today. There’s got to be a way for the bankers to cover all of the borrowing associated with the build out of data centers.

Over the years the myths of Apple being doomed have largely been just that. Myths. Apple always found a way. This turbulence probably won’t change that. But the AI Tax will change things for all of us in ways that we’re just beginning to understand. Inept global political and corporate leadership easily taken advantage of by hype-masters and hucksters have paved the way to this moment. 

And all of this for a still largely unproven technology.

Thanks for reading. You can subscribe to this blog if you care to. You can also find more of my writings on a variety of topics on Medium at this link, including in the publications Ellemeno and Rome. I can also be found on social media under my name as above. This site does not use affilate links. 

No Surprise. Apple Raises Prices Due To Memory Woes

No hallucination. AI puts the squeeze on memory prices.

Don’t be surprised. Don’t be shocked. Apple is raising prices. Outgoing CEO Tim Cook said a week ago that Apple couldn’t withstand the price pressure brought on by memory chip shortages, likening it a 100 year flood. Put on your waders John Ternus.

Apple logo2.jpg.

Translating that a bit, what Cook was saying is that Apple doesn’t want to cut into its historic profit margins. 

Bloomberg has the report. As does everybody else. You’ll see lots of screaming, hair pulling, and much gnashing of teeth about this in the next few days. But again, this shouldn’t come as a surprise given all we’ve heard for so long about the pressures AI is putting on the chip business.

Just remember, every time you’ve talked to that chatbot, you’ve helped make this happen.

Here’s a statement from Apple to the Wall Street Journal.

“We have now reached a point where we need to begin raising prices,” [Apple] said in the statement. “We have never seen a component price increase this much, this quickly.”

Note that there’s no mention of AI is the root cause. Rationalizations and spin will replace AI hallucinations and eventually absorbed into the corpus of knowledge about this.

So what costs more?

Even Apple’s latest big hardware success story, the MacBook Neo, originally priced at $599 is going up to $699. That has to sting. But so too will the sting for price increases for iPads and Macs. 

Here’s a list of some of what’s more expensive.

  • MacBook Neo entry $599 increasing to $699
  • MacBook Air 512GB $1099 increasing to $1299
  • MacBook Pro 1T $1699 increasing to $1999
  • iPad Air 128GB $599 increasing to $749
  • iPad Pro Wifi 256GB $999 increasing to $1199
  • iPad mini $499 increasing to $599
  • iMac $1299 increasing to $1499
  • Apple TV 4K $129 increasing to $199
  • HomePod mini $99 increasing to $129
  • Vision Pro $3499 increasing to $3699

At the moment iPhone prices remain the same. Expect that to change come this fall. You’d be a fool not to.

I think this is the beginning of a cycle that is going to see most consumer hardware become more costly, eventually reducing the number of units sold. Somebody thinks that will even out. I’m not so sure.

All because of an overhyped technology that is being forced into consumer hardware and the much hated data centers that are required to run it. Less units will be sold. But if your eye is on the price per unit margin, you’re missing the larger point. Math is hard. But it’s not that hard. Sell less, make less.

Simply put, we’re at the beginning of a nasty cycle. Ask your chatbot therapist how you should handle it.

Thanks for reading. You can subscribe to this blog if you care to. You can also find more of my writings on a variety of topics on Medium at this link, including in the publications Ellemeno and Rome. I can also be found on social media under my name as above. This site does not use affilate links. 

iMessages Bug in macOS 26.5.1

Affects sending messages via RCS or SMS

Discovered a frustrating macOS 26.5.1 in iMessages. While I can send and receive SMS and RCS messages to Android users on my iPhone, I can only receive them on a Mac or iPad. 

I’m not alone in this as I’ve seen several reports. Most point to the same timing of the bug appearing after macOS 26.5.1 was released, although some as early as 26.5. There is talk of it being possibly corrected in 26.6. 

Given all the attention and focus on the OS 27 releases, here’s hoping that’s correct and 26.6 rolls out soon. Because I’ve tried all of the usual and recommended steps to try and correct the issue to no avail. The issue also seems to fall in that small minority of users circle of hell.

I’ll write more as I discover more on this. But I guess since I only discovered this today, it tells me how few messages I’ve exchanged with Android users of late. 

Thanks for reading. You can subscribe to this blog if you care to. You can also find more of my writings on a variety of topics on Medium at this link, including in the publications Ellemeno and Rome. I can also be found on social media under my name as above. This site does not use affilate links. 

More Thoughts On The Economics Of AI Not Adding Up

Math is hard. Harder still when you ignore the math.

I wrote a piece last month expressing some thoughts on how and why I think the economics of Artificial Intelligence don’t add up. I’m expanding on a couple of those thoughts. 

Shutterstock 1845864553.

First, the cold feet of the bean counters are getting colder when it comes to the cost of token usage. Tokens, being the measure of how the cost of computing all of those requests to whatever AI engine is waiting to invoice for hallucinating, are proving to still be expensive and probably will be for some time to come. Unless the costs have been vastly overvalued to increase margins, those costs aren’t going to come down any time soon. 

Second, in order to keep the pumps primed the race seems to be shifting from cloud servers to on device use. That sounds smart. It certainly is as a possible security measure and selling point. But at the moment, and probably in the end, already rising costs of hardware will continue to inflate as the memory demands needed to turn those on device dreams into hallucinations escalate. Segmentation of the market will continue. 

Already we’re seeing strong hints that more and more memory is required to run the latest and supposedly greatest. That means newer devices with more memory, already becoming too expensive a proposition for many. As an example, only the newest Apple devices will be able to run all of the new features of Siri AI. Frankly, I don’t think that will turn into big new hardware upgrade cycles.

Third, for those already turned off and pushing back on the AI curve I don’t think any of this matters at the moment. Will it matter down the road? Most likely, yes. It’s not about more expensive devices or service prices, it will all be about how the costs are spread around in other ways that we’ll never really see outlined in any price or feature comparison. 

The bottom line is still the bottom line. Costs are going to continue to rise one way or the other, whether bubbles pop or not. And then the advertising will kick in. 

(Image from Viktoria_P on Shutterstock)

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Siri AI and The Spam Call Problem

Put AI to work banishing spam

Listening to podcasts after each WWDC is always a bit of information overload, but occasionally you catch a bit of analysis that seems perhaps pertinent. 

One of the podcasts I listen to his John Gruber’s Talk Show Live event that he’s been hosting for a few years now. After his infamous Something Is Wrong In The State of Cupertino post last year, Apple execs stayed away after having been guests in years previous. They stayed away this year as well.

This year, like last, Gruber put together a panel that featured The Verge’s Nilay Patel and Joanna Stern, formerly of The Wall Street Journal, now with her own gig, New Things With Joanna Stern. This year and last offered excellent commentary by both, and given the wait and see cynical posture I’ve adopted for all of Apple’s upcoming offerings, worth a listen. 

One interesting tidbit stood out that I want to highlight in the context of my ongoing complaints and requests to Apple about making the handling of spam and unwanted phone calls easier. 

Joanna seemed to be quite impressed with what she’s seen of Siri AI in the early going, citing a number of examples that she tried out during the event. The one that stood out to me is this:

I said, “What could I do that’s fun near the California Theater? I have some time to to kill,” and I don’t know if… I don’t know exactly what was the prompt or what was the thing, but it started suggesting things I could do locally. But also, it had access to my voicemail, so it knew that I had just gotten a message from my uncle who asked me to speak at his book club, and it said, “You… you could get back to my your uncle about his book club engagement, you would have some time to do that.” Okay, that’s crazy. It really is, right? And but what if that was sensitive information, right?

The key is Siri AI having access to voice mail. Regardless of however you feel about what data and info Siri AI needs to have about you to develop “Personal Context,” if Siri AI has access to your voice mail it seems it should be a relatively easy technological hop, skip, and jump to just automatically delete the flood of spam calls that have already figured out ways around any of the current wack-a-mole tricks that are being used. 

Obviously the larger point Joanna makes about “Personal Context” and a new level of trust is spot on. It is one many iPhone users will have to reckon with. But I’ll tell you this. For my own personal context, if Siri AI can automatically banish to digital hell all of the fake calls that now use names to try and circumvent current spam call prevention I’ll be grateful. 

The only reasons I can think of for Siri AI (or Google’s Gemini on Android phones) are business reasons and relationships with the mobile carriers. Apple’s “Personal Context” or Google’s “Personal Intelligence” are the names of the game, or so they claim. It seems logical to me that the technology exists to eradicate more of this curse that same technology makes possible and we all are prey to, whether it be phone calls, emails, or texts. 

Thanks for reading. You can subscribe to this blog if you care to. You can also find more of my writings on a variety of topics on Medium at this link, including in the publications Ellemeno and Rome. I can also be found on social media under my name as above. This site does not use affilate links. 

Why Can’t We Fix These Nags?

We’re not loyal customers. We’re data points.

There are so many things we become numb to. See something often enough and you almost ignore it’s there. Constant reminders and notifications about things to buy are certainly in that category. You get used to them, know they won’t really go away, and yet every now and then, one of them just jumps off the screen and hits you wrong and pisses you off. 

The ones that really grate are the ones that encourage me to buy something that I already own or subscribe to, or deals I’m ineligible for. Like the “Don’t Miss 3 Free Months of Music” one pictured above. I’ve been an Apple Music subscriber for longer than I can remember, yet I keep getting this offer that’s obviously aimed at new customers. I find it insulting.

Look I get it. Companies want and need new customers. Older customers drop off as the prices inevitability rise. Discounts and free trials always entice. But to insult existing and long term companies with offers that essentially undercut the established relationship is just that. Insulting. 

With all of the latest and greatest tech innovations, why can’t companies find a way to know that we’re already a customer and keep from sending us these offers that insult loyal users for already supporting them? Based on the blizzard of emails, text spam, and notifications you almost instantly receive after buying a product from other companies selling the same thing that tech obviously exists. Maybe all of these moves into “personnel context” will solve that. I doubt it. In fact, I will bet that it will only make the situation worse. 

Customer loyalty hasn’t been what it used to be for quite a long time. That’s old school, corner store thinking. Today we’re not viewed as customers. Just another data point. 

Thanks for reading. You can subscribe to this blog if you care to. You can also find more of my writings on a variety of topics on Medium at this link, including in the publications Ellemeno and Rome. I can also be found on social media under my name as above. This site does not use affilate links.

The Siri AI Demo Apple Should Have Done

One day perhaps we’ll move beyond AI cliché demos.

My nephew occasionally takes a look at this blog and gives me feedback on what I think and write. Actually, he mostly gives me shit. He certainly does when I write about Artificial Intelligence. He often asks why I’m so “down” on AI. At least we agree on politics. 

Apple Executive Mike Rockwell demos Siri AI at WWDC 2026

I keep reminding him that I’m not “down” on the technology per se. I’d love to see the press release announcing AI led to a a cure for cancer. Who wouldn’t? I’m down on the way it continues to be sold to us and the ramifications that brings on so many levels, while still feeling like it’s not what the sellers keep promising. (I also remind him to read what I write more carefully, but he’s probably using some AI to summarize what I write.) 

In truth, that’s the essence of my skeptical reaction to what we know as AI at the moment. There’s a lot going on, but how it’s being sold to most consumers still feels like it will ultimately be no more, no less than just another tool we use on a computer, after exacting high costs to do so, and dumbing down the general learning curve in the bargain.

Take for example the demos we constantly see about what AI can do when each company rolls out its latest version. As demos they all look slick as far as party and trip planning go.

(Coding is another case entirely. I’m not talking about that here, simply because I don’t have the expertise to do so. I’m strictly speaking of the sell to consumers.)

Even Apple fell back on these examples that have become clichés in this year’s WWDC 2026 announcement. Those clichés define the market companies think are ripe for the come on and then the plucking. I’m guessing they also define the current limitations of the technology. Or at least the limitations companies don’t want to risk pushing beyond in a live demo. 

Here’s the AI Siri demo I wish Apple had shown us yesterday. 

If you watched Apple’s keynote presentation you might remember this slide. 

Maybe not. It flew by pretty quickly. It’s a word cloud of all of the other non Siri AI improvements Apple is bringing to its various operating systems this year.

Yes, the print is that tiny and crammed together. To call it unreadable is accurate. For those who didn’t watch the demo, the length of time it was on our screens was equally tiny, certainly compared to all the travel time each presenter took to walk on and hit their mark prior to speaking. To be honest, the slide’s quick and unreadable inclusion felt insulting given the long list of improvements it’s touting. 

(To my knowledge no such list appears yet in Apple’s Newsroom or on its website heralding the other announcements. If I’m wrong, point me to it and I’ll link to it here. I’m sure it won’t be long before one of the sites that covers Apple distills it down and publishes it. Probably using AI.)

(UPDATE: Right after hitting publish, I noticed that John Gruber linked to this post on the Oneberri Blog listing all of those improvements.)

What if Mike Rockwell, the Apple Executive who did the Siri AI demos, had asked Siri AI to take that slide, and present the info into a bulleted list in Apple Notes, and then prepare a PDF for distribution? In the post keynote tech talk he and other Apple execs participated in, he could have followed that up by asking Siri AI to distribute the PDF to the other Apple execs on stage. Essentially it would have demonstrated the same Siri AI capability to gather info across native Apple apps, using context, in the same way the clichéd party planning demos do.

It certainly would have been more impressive than the usual clichés.

Perhaps AI Siri and the apps needed to do that work aren’t ready for such a challenge just yet. Things are still in beta after all. Perhaps it’s just too risky to stray outside of what’s made these kinds of demos a laughable cliché. Perhaps we’ll get there someday. Who knows? 

Meanwhile I’ll remain “down” on AI the way my nephew likes to give me shit about my AI skepticism. I hope one day this technology might indeed lead to a cure for cancer. I also hope my nephew keeps reading this blog. It might help him learn to think for himself more often. 😉

Thanks for reading. You can subscribe to this blog if you care to. You can also find more of my writings on a variety of topics on Medium at this link, including in the publications Ellemeno and Rome. I can also be found on social media under my name as above. This site does not use affilate links.

Apple Announces New OS’s. I’m Still In Wait And See Mode

Apple works to make good on Apple Intelligence with Siri AI

At WWDC 26 Apple today announced new operating systems all ending in OS27. (The numbering thing drives me nuts.) The entire keynote felt different to me from recent years. I’m not talking about the presentation organization that strayed from the usual by device format. Rather it felt like Apple felt a bit humbled. Almost as if Apple is in a we’re in a thinking different mode these days. I may be reading more into that than is real, but I’m usually pretty good at sniffing these things out. 

Apple announces Siri AI and its next generation of Apple Intelligence.jpg.

Apple chose the name Golden Gate for its macOS 27 version this year, and it looks like the folks in Cupertino heard the criticisms about Liquid Glass and have taken some steps to correct what I and many other consider design flaws. I’ve seen as many negative as positive reactions to the design changes, so we’ll see how that goes throughout the summer. 

There was also quite a bit of time devoted to Parental Controls. Given the political heat big tech in general is taking politically here in the US and elsewhere that’s probably a smart move. The announcement stirred up a bit of controversy from folks not in favor of efforts like age verification. The devil will be in the details. 

The big push though is all about Apple Intelligence and the New Siri, now called Siri AI. Trying to play catch up and recover from the mistakes of two years ago, Apple showed off some live demos in a separate meeting from the keynote. You can read about that on The Verge. So you have to consider showing live demos a plus over two years ago, although it was still in a protected environment. I’ll be looking for users to do the same as the betas roll out, even if it appears that there’s a waiting list for the New Siri. So, we’ll see how that goes.

Note that Siri AI, announced to roll out this fall, will be delayed in the European Union and China.

The announcements were solid. They appeared to address past problems of Apple’s own making, user complaints about recent design changes, and the promise of under the hood bug busting. Announcing speed increases across the platforms is promising. But we’ve been here before. Every keynote from every company makes promises. The devil is always in the details, and when life is a beta, you never know what’s final and when. Especially when you’re in a mode of trying to rebuild trust.

You can check out the entire keynote reduced to 26 minutes, also from The Verge here. And Jonny Evans has a nice collection of the headline announcements from the keynote here.

And this Mastodon post from Dwight Silverman sums up my some of my early thoughts as well.

To further sum it up my early thoughts, I’ll just say this. It’s going to be an interesting summer watching folks hammer on the betas, the first of what was released to developers today. The public betas will roll out in July. But we’ll have some early indications later in the week as developers begin working with the betas.

So, I’m still in wait and see mode. As should most of us be.

Thanks for reading. You can subscribe to this blog if you care to. You can also find more of my writings on a variety of topics on Medium at this link, including in the publications Ellemeno and Rome. I can also be found on social media under my name as above. This site does not use affilate links.

What Does A “Siri That Works” Mean?

“An acre of performance is worth a whole land of promise.”

You know what a litany is. It’s a series of prayers with predictable responses, learned, ingrained, and repeated without much thought. Call it “call and response.” As we finally arrive at the beginning of Apple’s WWDC 2026 today, the call has been summarized down to Apple needs a Siri that works.

But how the hell do you respond to that?

An official "Everything Everywhere All at Once" Pet Rock, featuring a smooth, dark grey oval stone with two plastic googly eyes attached to the front. The rock sits nestled inside a bed of shredded brown kraft paper. Behind it is its custom light-blue cardboard carrier box designed like a pet crate, complete with a carrying handle and circular air holes. The box has white text that reads "Oh good. You're here too." on top, with "PET ROCK" in a bold, stylized white font on the front.Siri was once a surprising computer gimmick, before Apple got its hand on it in 2010. Siri has been surprisingly bad at most things ever since. Sure you can set a timer, or a reminder, occasionally play the right play list and a few other things. If that were the extent of the promise the jokes wouldn’t be funny. But the promises were always more. They never lived up to the personal assistant aspirations. It’s still largely a gimmick. One too easily made fun of. 

Amazon’s Alexa and Google’s Assistant, (now Gemini) have taken bigger steps forward than Siri, but also continue to fall down and scrape their knees. Chatbots have come along and for some have replaced the need for someone to talk to. But each of those efforts still yield mistakes and failures. You know the way, humans do.

So do pleas for a “Siri that works” mean something that will always work? I doubt it. I think the expectation is that these chatbot like companions will continue to fail. Again, the way humans do. But you can’t sell that.

Does it mean a “Siri that works” does something new? I doubt that also. The entire promise of computer assistants, chatbots and artificial intelligence is to do things we already do more efficiently. In fact, that’s the history of computing. When spreadsheets replaced pencils, green eyeshades, and then calculators we were on to something.

We haven’t yet figured out a way to help us communicate better in person, much less in front of a screen or into a microphone. A “working Siri” (or any other chatbot) isn’t going to help us with that. They may teach us a new way to communicate to set that reminder, but the respondents failure makes us all feel like we’re wrong. Until we just stop talking.

I’m not sure how you reconcile doing things more efficiently with the failure rate. One that seems all but guaranteed by the “mistakes will happen” caveats that prove lawyers always earn their keep. Frankly, I don’t ever see a “fire and forget it” guarantee in what remains of my lifetime. Maybe someday.

Word is that whatever Apple rolls out as “a working Siri” will roll out with a beta label attached to it. That’s a good preemptive legal response, but a sad commentary on the state of things. We expect things to go wrong in betas. Talk about setting a low bar. Even a necessary one. 

Speaking of the history of computing, when it comes to mobile computing we’ve gone through at least one cycle where the focus shifted away from keeping us addicted to our phones, to an entire wave of ways to help us escape the tyranny of the small screens, put them down and enjoy more of life without them. Call me crazy, but the rush to chatting away to smartphones, AirPods, pendants, pucks, cars, etc… seems contradictory to solving our tech addictions. Out with the old trend, in with the rerun.

Gimmicks work. They help sell devices and feed trends. Think pet rocks. We’re already seeing talk of children’s toys with AI voice assistants and reactions against them. At least this time around the reactions are coming more quickly.

I’m guessing it’s not long before we see a pet rock product that contains an AI powered voice assistant. We can always use another paperweight.

Thanks for reading. You can subscribe to this blog if you care to. You can also find more of my writings on a variety of topics on Medium at this link, including in the publications Ellemeno and Rome. I can also be found on social media under my name as above. This site does not use affilate links.

Segmenting The Future Of Computing

The days when the costs of technology decreasing over time have passed.

I’ve been writing a small bit about the segmentation I see coming in how we currently think of computing. Yes, it’s about Artificial Intelligence, and yes, it’s about money. There’s no question that we’re already seeing price increases due to chip shortages, but I’m thinking that’s just the beginning of what will make Apple’s reputation of shipping too expensive computers, prior to the MacBook Neo, seem like a memory.

A close-up photograph of overlapping neon signs illuminating a dark background. In the foreground, a prominent bright green neon sign is shaped like a dollar symbol ($\$$) by Aedrian salazar Wy7Gy8ZcW1M unsplash.

There’s no question that the cost associated with Artificial Intelligence is driving this and will continue to do so. The question is how much? Note that in the latest announcements from Google, Microsoft, and Nvidia heralding what’s coming that price tags weren’t revealed. Quite frankly from the way I’m reading the tea leaves scattered among the press releases, most of these companies are skittish because they don’t even know how high the cost curve is going to bend. Or they’re afraid of the sticker shock once they do find the courage to announce them.

The way I see it, the next period of time is going to be one where if you can afford the steeper prices of hardware and AI services, you’ll be able to play on that level. Those that can’t, and may not even need to, will be gradually left behind. Although for many that won’t prove to be that much of a problem given their needs. Initially.

Tell me honestly, what has any AI company promised, prior to this coming age of agents, that most computers can’t already do? Heck, even some of the promises agents can supposedly deliver don’t seem to offer that much more, unless you’re a software developer or in math sciences.

That said, operating systems and software are all being geared up along with consumer hardware to make the expensive side of the equation be the standard. 

Already we’re seeing moves away from AI robots doing their work in the various clouds. Companies are prepping local AI models to be installed on devices. Those local models are going to require memory and processing power that’s going to further drive up the hardware costs while possibly reducing the token tax. Gaming hardware is about to become really expensive. Back in the cloud, eventually we’re all going to be paying for search. Probably sooner, rather than later, if you want decent results. 

Speaking of taxes. Governments are starting to sniff around with their divining rods, sensing new money reservoirs to be tapped, while watching water resources stretched thin. There’s obviously a thirst. If, when, and where that happens will just add costs to be passed down the line. 

Take a look at this quote from Microsoft’s Satya Nadella:

“There are really two stories people can tell about this moment. One is that technology concentrates power, reduces human agency, and leaves to society to absorb the consequences. The other is that we use this next wave to unlock opportunity for developers, scientists, enterprises, and every community. And our job is to make the second story true.”

On the surface it sounds like there’s opportunity for what’s coming to be all inclusive. Clever. Beneath that surface I think Nadella is hinting that unless your computing needs are in fields of endeavor that will require AI to be competitive, you’re at the tail end of that second story and will probably be on the outside looking in while absorbing the consequences. There’s really only one story.

As I mentioned earlier, there are plenty of users who don’t need the latest and greatest hardware and will probably be just fine without. For a time. Unless the big players create operating systems and hardware that segment out some of what will only become compute heavy advances, consumers will eventually find today’s tasks more challenging and less secure as existing hardware slows down and future security updates are released on slower schedules. 

Of course that also leaves an opening. 

Perhaps companies that offer hardware and services that don’t push whatever current AI envelope is being pushed, might find a willing market. You could argue that Apple’s MacBook Neo, and Dell and others’ recent announcements to counter that somewhat surprising move, might presage this. Without lower entry price points, who knows, a lot of users might just return back to the days of envelopes and snail mail.

That’s probably too extreme a reaction, but we’ve seen similar reactions to technology in the past, some quite recent, once the gee whiz factor has worn off like the letters on cheap keyboards on even expensive computers. Think touch screen displays instead of buttons and dials in cars. Think home automation. Think the Metaverse. Think talking appliances. Think cars and machinery that require maintenance contracts. Think 3D TVs.

Those that love to dabble and explore frontiers and have the money to do so will always seek the next adventure. Go for it. Those who just want to send a birthday greeting, create a holiday card, share a calendar, proofread a document, or search for a local merchant don’t want a hustle or a hassle, or the increased expense that’s obviously coming.

For the moment, the days when the costs of technology decreasing over time have passed.

(Image from Aedrian Salazar on Unsplash)

You can also find more of my writings on a variety of topics on Medium at this link, including in the publications Ellemeno and Rome. I can also be found on social media under my name as above. This site does not use affilate links.