Why Big Tech is heading toward its end

The tech world is on the cusp of significant change. Politicians, investors, and experts are increasingly criticizing big tech companies that seemed unshakable a short time ago. The unexpected unity of opinion spans the entire political spectrum: from opposition parties to leading experts and the tech giants themselves, who are ready to challenge the existing system.

Reasons for the decline of Big Tech

Negative consequences of the centralized model

The concentration of enormous power in the hands of a few companies inevitably leads to systemic failures and threats to critical infrastructure. A prime example was the failure of CrowdStrike in mid-2024, when Microsoft's negligence affected global systems from hospitals to banks to transportation. Centralization creates not only technical risks but also a dangerous pattern of total oversight and control of information, which is increasingly worrying society.

The crisis of artificial intelligence

Artificial intelligence, which Big Tech had high hopes for, is beginning to lose its initial allure. Influential financial institutions, including Goldman Sachs and Sequoia Capital, are publicly voicing concerns about the huge discrepancy between the billions of dollars invested in AI technology and the actual returns. The gap between expectations and actual results is becoming increasingly apparent.

Privacy issues

In parallel, public sensitivity to privacy issues is growing. The announcement of Microsoft Recall, a system that would take snapshots of everything a user does on a computer, is indicative of this. Such initiatives demonstrate the fundamental willingness of tech giants to invade personal space for the sake of so-called “convenience”, which, on the contrary, is strongly criticized by clients.

Alternative technological paradigms

European initiatives

Alternative ecosystems are emerging to counterbalance the dominance of Big Tech. European initiatives focus on the development of independent tech infrastructure. Alliances of open-source software developers, governance researchers, and experts in the political economy of the tech industry are creating qualitatively new approaches to technology creation.

New investment models

A new class of tech-oriented investors with a clear social mission is gradually emerging. They seek to move away from the traditional model of “find a unicorn, grow, sell, get rich”. Instead, they offer hybrid models, where part of investments is deliberately directed to support non-commercial critical infrastructure.

Government support

Public funding can play an important role in transforming the technology landscape. The German Sovereign Tech Fund is a prime example of this approach - public funds are distributed through independent mechanisms to support open-source software projects. This allows us to maintain institutional independence and focus on real public needs.

Conclusion

The end of Big Tech is not the end of the world, but a welcome chance to reboot. It's time for smart, genuinely interesting, and motivated tech professionals to build an ecosystem where innovation serves people, not the other way around. Technology is returning to its original mission - to be an instrument of progress and development.

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