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After automation: Intelligence will live in your pocket, not a data center

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Over the last decade, we have experienced AI through our screens. We type a prompt, send an image, or ask a question, and intelligence comes back to us from a distant data center. This model has given us systems with remarkable fluency, creativity, and reasoning ability. But it is also expensive in energy, latency, infrastructure, privacy, and in the concentration of power that comes from making intelligence dependent on massive large-scale cloud infrastructure.

I believe we are at the beginning of a profound architectural shift. The future of AI will not be based in data centers. It will be hybrid: local first, cloud when necessary. Many AI problems will be solved directly on your device, whether that’s a phone, car, robot, or in the factory or your home. When a problem requires broader knowledge, deeper reasoning, coordination, or extraordinary computation, an intelligent router will send it to the cloud, but that’ll no longer be the default. Intelligence will begin close to the person, and close to the action.

This is already becoming possible. Small, capable, efficient models can now run on modest hardware. They can see, listen, summarize, translate, guide, and assist without sending every signal away. This matters because local intelligence is not just a technical convenience: It is a different relationship between people and AI. It means intelligence in your hand: faster, more private, more sustainable, more economical, and available even when connectivity is limited or costly.

We will still need large models for the hardest questions. But we should not ask the cloud to do what a local model can do well. The next generation of AI systems will need intelligent routing: deciding when to answer locally, when to use a specialized model, when to combine several local capabilities, and when to escalate to the cloud. This routing layer will become as important as the models themselves.

This moment feels to me as consequential as the movement from mainframes to personal computers. Mainframes concentrated computation in a few places. PCs put computation in the hands of people. On-device AI can do something similar for intelligence. It can move us from a world where intelligence is rented from centralized infrastructure to a world where intelligence is embedded in the tools and environments people use every day. A farmer should be able to use AI in a field without depending on a constant cloud connection. A clinician in a rural practice should be able to access decision support locally and privately. A student should have a tutor in their pocket.

This is the promise of hybrid AI: intelligence distributed across devices and clouds, matched to the task and the context of the real world. It is a path toward AI that is powerful without being wasteful, ubiquitous without being intrusive, and personal without requiring surveillance. This transformation will be woven into the physical and social fabric of daily life rather than locked inside the data center.

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Thesis 2027

On November 5, 2026, 400 people will gather at Pioneer Works in Brooklyn to debate the ideas in this collection—live, unscripted, and face to face.

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