- Prompt Entrepreneur by Kyle Balmer
- Posts
- AI with Kyle Daily Update 002
AI with Kyle Daily Update 002
EU AI Act Pushback, Cloudflare Web Fees, Microsoft Cuts 9K Jobs, ChatGPT Optimization Tips
The skinny on what's happening in AI - straight from the previous live session:
Highlights:
🇪🇺 EU AI Act pushback from CEOs

Discussed at 04:50
European CEOs from Airbus and BNP Paribas are urging Brussels to halt their landmark AI Act before it kicks in this August. The EU spent years crafting "perfect" regulation whilst America and China built actual AI companies.
Kyle's take: This is what happens when you regulate instead of innovate. The EU chose to be the "best regulated" whilst falling hopelessly behind in the actual race. Now they're realising their pristine rulebook is about to kill any chance they had of competing. Too little, too late.
🇺🇸 Trump's AI Regulation Ban Gets Crushed 99-1
Discussed at 14:40
The proposed 10-year moratorium on state AI regulation was obliterated in the Senate. Tech giants lobbied hard to block any state-level AI rules, claiming it would "hamper innovation" with a "patchwork of regulations."
Kyle's take: A law that bans making laws for 10 years? That's mental. I'm pro-AI but that was far too sweeping. Congress hasn't passed meaningful tech regulation in decades - this would've meant no oversight whatsoever. Smart to kill it.
💰 Microsoft Cuts 9,000 Jobs, Pumps $80B into AI
Discussed at 08:30
Microsoft just axed 4% of their workforce while simultaneously announcing $80 billion additional spend on AI data centres. The classic "efficiency through AI" playbook in action.
Kyle's take: This is the new normal. Companies won't say "AI took your job" - they'll say "restructuring for efficiency." The pyramid is collapsing from the bottom. Entry-level positions disappear first, then it ripples upward. If you're entering the job market now, diversify your income streams immediately.
Source: Microsoft layoffs announcement
🌐 Cloudflare Wants to Become AI's Toll Collector
Discussed at 23:40
Cloudflare announced a "pay-per-crawl" system where AI companies must pay every time they scrape websites. They claim they'll share revenue with content creators, but conveniently position themselves as the middleman.
Kyle's take: This stinks of self-interest to me. Sorry! Cloudflare faces extinction as AI reduces web traffic, so they're appointing themselves as internet gatekeepers. The big AI companies will just pay the toll - it's small startups and researchers who get locked out. They're creating a two-tier internet where only deep pockets can play. And sitting in the middle collecting the bridge toll like trolls…
📈 SEO is Dead, Long Live AIEO
Discussed at 36:42
Web traffic is cratering as AI overviews replace click-throughs. SEO professionals are scrambling to figure out "AI Engine Optimization" - how to get ChatGPT to recommend your business instead of ranking on Google.
Kyle's take: The 20-year website paradigm is ending. Pro tip: Register with Bing Webmaster Services immediately - ChatGPT checks Bing indexing, not just Google, due to Microsoft's backend integration. The fundamentals remain the same though: build something valuable, get cited by reputable sources, create a proper brand footprint.
📚 Essential AI Voices to Follow
Member spotlight based on Nate B Jones recommendation
Nate highlighted 11 must-follow AI voices including Ethan Mollick (Wharton Professor), Andrej Karpathy (the rare engineer who can actually explain things), and Demis Hassabis (Nobel Prize winner, DeepMind).
Kyle's take: Finding signal in AI noise is brutal. These people consistently cut through the hype. Special shoutout to Karpathy's 3.5-hour deep dive into LLMs - not short, but pure gold. Also watch "AlphaGo" (full documentary link) if you want to understand both the promise and melancholy of AI beating humans at their own game.
This insight was discussed at 41:30 during today's live session.
Member Question: "Will AI make it harder to get software dev jobs?"
Kyle's honest take: Yes. Sorry. The pyramid is collapsing from the bottom. Entry-level positions disappear first because AI handles the mundane algorithmic work. It's not direct replacement - it's fewer new jobs created. It’s sneaky. Senior devs are probably fine for now, but if you're entering the market, have multiple income streams ready. This time really is different (to prior technologies) because AI doesn't just use tools - it operates them.
This question was discussed at 08:00 during today's live session.
Want to submit a question? Drop it below this video and I’ll cover it in a future live.
Want the full unfiltered discussion? Join me tomorrow for the daily AI news live stream where we dig into the stories and you can ask questions directly.