Amazon annihilates Alexa privacy settings, turns on continuous, nonconsensual audio uploading
Even by Amazon standards, this is extraordinarily sleazy: starting March 28, each Amazon Echo device will cease processing audio on-device and instead upload all the audio it captures to Amazon's cloud for processing, even if you have previously opted out of cloud-based processing:
It's easy to flap your hands at this bit of thievery and say, "surveillance capitalists gonna surveillance capitalism," which would confine this fuckery to the realm of ideology (that is, "Amazon is ripping you off because they have bad ideas"). But that would be wrong. What's going on here is a material phenomenon, grounded in specific policy choices and by unpacking the material basis for this absolutely unforgivable move, we can understand how we got here – and where we should go next.
Start with Amazon's excuse for destroying your privacy: they want to do AI processing on the audio Alexa captures, and that is too computationally intensive for on-device processing. But that only raises another question: why does Amazon want to do this AI processing, even for customers who are happy with their Echo as-is, at the risk of infuriating and alienating millions of customers?
For Big Tech companies, AI is part of a "growth story" – a narrative about how these companies that have already saturated their markets will still continue to grow. It's hard to overstate how dominant Amazon is: they are the leading cloud provider, the most important retailer, and the majority of US households already subscribe to Prime. This may sound like a good place to be, but for Amazon, it's actually very dangerous.
Amazon has a sky-high price/earnings ratio – about triple the ratio of other retailers, like Target. That scorching P/E ratio reflects a belief by investors that Amazon will continue growing. Companies with very high p/e ratios have an unbeatable advantage relative to mature competitors – they can buy things with their stock, rather than paying cash for them. If Amazon wants to hire a key person, or acquire a key company, it can pad its offer with its extremely high-value, growing stock. Being able to buy things with stock instead of money is a powerful advantage, because money is scarce and exogenous (Amazon must acquire money from someone else, like a customer), while new Amazon stock can be conjured into existence by typing zeroes into a spreadsheet:
But the downside here is that every growth stock eventually stops growing. For Amazon to double its US Prime subscriber base, it will have to establish a breeding program to produce tens of millions of new Americans, raising them to maturity, getting them gainful employment, and then getting them to sign up for Prime. Almost by definition, a dominant firm ceases to be a growing firm, and lives with the constant threat of a stock revaluation as investors belief in future growth crumbles and they punch the "sell" button, hoping to liquidate their now-overvalued stock ahead of everyone else.
For Big Tech companies, a growth story isn't an ideological commitment to cancer-like continuous expansion. It's a practical, material phenomenon, driven by the need to maintain investor confidence that there are still worlds for the company to conquer.
That's where "AI" comes in. The hype around AI serves an important material need for tech companies. By lumping an incoherent set of poorly understood technologies together into a hot buzzword, tech companies can bamboozle investors into thinking that there's plenty of growth in their future.
OK, so that's the material need that this asshole tactic satisfies. Next, let's look at the technical dimension of this rug-pull.
