Can Cloudflare save the web from AI?

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Decoder with Nilay Patel 1h 19m 3 speakers 7 chapters transcribed
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What is the current impact of AI‑generated bot traffic on the internet?

Ankit Jain 0:00
Support for the show comes from EY. AI is reshaping how enterprises operate, compete, and create value, but organizations are struggling to move beyond fragmented tools and siloed AI investments to create real impact. EY.ai, the reimagination engine, is an open, dynamic, AI-led technology system at the heart of EY. By combining AI, technology, and people with trusted experience, EY helps organizations turn AI ambition into enterprise value. Because AI is only as valuable as the hands that shape it. Go to eyotai to explore more.
Nilay Patel 0:45
Hello and welcome to Decoder. I'm Neil I Patel, editor-in-chief of The Verge, and Decoder is my show about big ideas and other problems. This episode is part of a two-part series on the future of business. Today I'm talking with Matthew Prince, the CEO of Cloudflare. Cloudflare is one of the most important infrastructure companies in the world. It protects all kinds of apps and services from bad actors on the internet, basically making it possible to operate a business online. Matthew last joined us on the show about two and a half years ago. What we thought then was a wild pivot point for the internet. But now, because of AI, it turns out things are even wilder, and Matthew and Cloudflare are right at the center of it.
Nilay Patel 1:17
Cloudflare found in June that bots now make up more than half of internet traffic, a number that just keeps going up as more and more AI companies scrape more and more of the web. And now as more and more people send AI agents out to do things for them on the web. Cloudflare sits between websites and all those AI tools and allows website owners some level of control. They can block all those tools, allow them, or as you'll hear Matthew describe, potentially only allow those that pay money for access. So Matthew and I talked about how to control all those spots, what kind of mess they're making of the web, and what kinds of information might be more valuable in the future as some of these payment schemes come into focus.
Nilay Patel 1:54
You'll hear me ask pretty directly if some of the outcomes he's describing are actually good. Matthew is a thoughtful guy, and his answer is something I'm still thinking about well after we had this conversation. Matthew is also at the center of another important AI. Earlier this year, Cloudflare laid off more than a thousand people, 20% of the company. And Matthew wrote an op-ed about that decision, which ran in the Wall Street Journal under the headline, How Why Choose Which Cloudflare Employees to Replace with AI? That is pure Decoder Bay. AI, big controversial decisions, and org charts all in one. So obviously we talked about that decision in detail and what it might mean for how companies are structured in the future.
Nilay Patel 2:31
One last thing before we get started, you can subscribe to Decoder on YouTube, where we put out new episodes every Monday and Thursday. Okay, Matthew Prince, CEO of Cloudflare. Here we go.
Nilay Patel 2:52
Matthew Prince, you're the co-founder and CEO of Cloudflare. Welcome back to Decoder. Thanks for having me. All right, I'm really excited to talk to you again. It's been about two years since you're on the show. I was just looking back over that episode and I said something to you like, it's a momentous time for the internet and I was not even close. It's now an even more momentous total time for the internet. You are at the forefront of rebooting how companies work with AI. That is the most decoderbate of all time. I want to talk about bots and the internet and publishers and Google and all the things that you are in the middle of. But let's start start at the very beginning. Cloudflare is a complicated, important company.
Nilay Patel 3:25
The last time we're in the show, you you summed it up, you said Cloudflare is a service that makes the internet faster and protects it from bad guys. Is that still how you would describe what Cloudflare does?
Matthew Prince 3:33
That's that's usually when I when I'm when I'm trying to answer a question at a cocktail party and I don't want to talk to the person anymore. Uh I I say that what I what I what I'd say if I actually was sort of interested in talking to the person more is probably that Cloudflare is trying to rebuild the internet the way it should have been built from the beginning if we knew how important it was gonna be.

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