The economic pain many Americans feel after years of stagnant wages and steep inflation is unlikely to lift before the November elections, and could be a major liability for Republicans, according to experts.
With the midterm election three months away, the Trump administration is facing pressures from the war in Iran, high cost of groceries and fuel, as well as the impact tariffs have had on the economy.
In January, Riot Games revamped its morale-hurting return-to-office rules to allow more flexibility. The result? Attendance and productivity have risen.
Los Angeles, CA - April 11: A view of PC Bang or PC cafe which emulates the environment of how most of the players play games at Riot Games, a video game developer and esports tournament organizer in Los Angeles Monday, April 11, 2022. The company's expanding real estate footprint in West Los Angeles. (Allen J. Schaben / Los Angeles Times)
Задача Би-би-си - каждый день создавать контент мирового класса; контент, который информирует, просвещает и развлекает миллионы людей в Великобритании и по всему миру.
It’s the act that’s defined a generation, an experience so common it’s become memeified: canceling plans. Bailing is a litmus test of sorts; who and what events you back out of says a lot about you as a person. Are you the type who commits and only bails when absolutely necessary? Or are you a frequent flake looking to change their ways? (No judgment here: The occasional canceling of plans is acceptable, and you shouldn’t feel guilty about it.)
Call it a byproduct of overscheduling, a facet of introversion, or a condition of mild social anxiety, but bailing is a popular tool in our social arsenal. Regularly deployed mere hours ahead of a previously scheduled engagement we’ve come to dread, canceling was once considered a get-out-of-obligation-free card. In recent years, though, general consensus around bowing out has seemed to shift, perhaps spurred by the growing attention paid to the dangers of social isolation or simply because being consistently bailed on feels like garbage. All of which is to say, canceling requires much more tact than simply rattling off a text 30 minutes before you’re supposed to meet up with a friend.
There are, of course, valid reasons to skip a movie night (you’re sick, for instance) and very few excuses good enough to justify not showing up to a wedding you RSVP’d to. But rather than giving in to the impulse to flake when the urge hits, it’s important to make a more considered choice based not on how much you think you’ll enjoy a social event but on the consequences of skipping.
Consider this your canceling checklist, a bailing thought experiment, a toolkit for bowing out. Taken together, the following five questions will help inform your decision on whether to skip a social engagement.
Who are you bailing on?
Before flaking, take your audience into consideration — namely, whether this is a person you’d be comfortable inconveniencing. Because we’ve already invested significant time and energy into close relationships with family and friends, we’re more likely to want to preserve those relationships by upholding plans. This past history can influence how comfortable we are with bailing.
“How important is this person?” Julian Givi, an associate professor of marketing at West Virginia University, tells Vox. “Do I value this person’s friendship, or are they someone that I’m okay with canceling on? Have they canceled on me?”
Close friends are complicated. In a study, William Chopik, an associate professor in the Department of Psychological and Brain Sciences at Washington University in St. Louis, found that participants reported being most upset when a best friend canceled on them, compared with when a good friend or acquaintance canceled. Ironically, though, that closeness gives us latitude. People also tend to be more forgiving when close friends cancel on them, Chopik says. By virtue of knowing someone so intimately, we understand the constraints on their time and can intuit they’d only cancel for a good reason. It’s also safe to assume we’ll likely see them again soon, too.
We may feel less obligated to those we don’t know well. The participants in Chopik’s study said they’d only be “a little” upset if an acquaintance canceled plans. So, if this is someone you don’t know very well, and don’t necessarily plan to, you might feel more comfortable ditching them.
It’s okay to bail if…
It’s a casual event…
…With someone who won’t mind (i.e., someone you know super well or not that well at all).
You offer an honest excuse.
You don’t cancel last minute.
You or your kid is sick.
A genuine conflict arises.
And you reschedule the plans.
What’s the occasion?
A monthly game night and a funeral don’t carry the same significance. You can probably guess which one is acceptable to skip. The formality of the event will give you a signal on whether it’s alright to bail. “People are more likely to cancel informal things,” Chopik says.
It’s fine to bail on a coffee hang, but think twice before ditching a wedding, funeral, retirement party, or other event of importance where someone might’ve paid money for you to be there, even if you don’t necessarily deem it a monumental occasion. “If it’s super important to this person, I’ll go, I’ll move mountains, I’ll traverse seas, I’ll travel as much as possible or inconvenience myself a lot,” Chopik says. “But then if it’s more informal or you don’t know them very well and the burden to get there is high, those things are the things that’ll lead you to likely cancel.”
While it may seem acceptable to ghost on a group occasion — who would notice you’re missing anyway? — your absence might alter the vibe. Take a bachelor or bachelorette party: If five of seven invitees back out, the celebration has shifted from a group affair into an intimate gathering. “Those last two left are in such a weird situation where it’s like, now I don’t want to go as much because it’s a smaller bachelor party,” Givi says. Your bailing signals to the stragglers that the event isn’t fun enough for everyone to attend.
How annoying is it for you to attend?
How often do we schedule a hangout only to remember later how much of a burden it’ll be to get there? The costs — financial, logistical, and energetic — all factor heavily into which plans we see through. A long and expensive commute for a short, casual hang when you’re already exhausted may not seem worth it.
The problem is, we’re bad at predicting how much fun we’ll have. We tend to overestimate the costs and underestimate how enjoyable the event might be, which leads us to cancel plans. In reality, our worst fears almost never materialize. “If you’re really anxious about it, it’s probably not going to be as bad as you expect. And that’s a pretty consistent finding,” Ella Moeck, a lecturer at Adelaide University in South Australia, tells Vox.
Everyone’s bar for what constitutes “too far” or “too much effort” varies, though. Your canceling over a 15-minute drive across town runs the risk of pissing off a friend who doesn’t consider that a hassle at all.
Concerning money, when people have already paid up front, they’re more likely to stick with plans. In that case, canceling would create more problems instead of quelling them. “That’s why anytime I’m planning anything, especially if it involves money, I make people Venmo me weeks in advance,” Givi says, for, say, a show or concert.
Don’t even think about canceling if…
It’s an important event, like a wedding, funeral, baby shower, or other event of importance.
Everyone else is bailing.
Something better came up.
You’re lying to get out of it.
You (or the host) paid for you to be there.
You think you’re going to have a bad time.
What’s your excuse?
In his study on canceling plans, Chopik found the most reasonable excuses for canceling were being sick, dealing with a family emergency or childcare issue, or having a work obligation. The worst justifications were mentioning something better came up, not being interested in the activity, and straight-up lying.
Surprisingly, participants weren’t sympathetic when someone canceled because of financial constraints. Chopik suspects the framing matters more than anything else: “I bet if you communicated that ‘I would’ve loved to go to this concert and spend time with you…but I just really can’t squeeze this right now,’ that’s a way more understanding excuse than being like, ‘That’s too expensive. I’m not going,’” he says.
The excuses themselves carry weight, but what they signal is also crucial. By telling a friend you’re bailing on them because you’d rather hang out with someone else, you’re communicating that they might not matter to you. But if you provide clarity about why you can’t make it and try to reschedule, that’s a sign you value the relationship. “If it’s just like, ‘I’m tired,’ come on, you committed already,” Givi says.
What are the consequences?
Canceling plans comes with potential fallout. Bowing out of a recurring group event isn’t likely to ruffle many feathers, but sending a “Sorry, can’t make it!” text minutes before a dinner reservation with out-of-town family members might not fly. Think about the position you’d leave the other party in, Givi says. “You could imagine it’s probably more acceptable the more time that there is before the event, the less meaningful the event, the less it’s putting them in a bind,” he says.
But recent research suggests these social consequences may be overblown. In an unpublished study, researchers found cancelers tend to overestimate how upset others are when they back out and underestimate how much canceling impacted others. “Realizing that canceled-on persons are more understanding than expected can reduce social stress,” the authors write.
However, this isn’t permission to back out of events with abandon. If you do leave people in a tough spot — they need to cover your concert ticket, they’re scrambling to find another way to get to an event you said you’d drive to — be prepared for scorned parties to share some choice words about you behind your back. “There’s this social penalty, too, that sometimes if you bail, people aren’t crazy about that,” Givi says.
Being in a relationship with someone — friends, family, romantic partners — requires us to honor our commitments. To be there. If we fail to uphold that simple promise, the invites will inevitably dry up. Who wants to keep making plans with someone who seemingly doesn’t value them? How can a friendship blossom when you don’t see one another?
“If you want a friendship, you have to honor those commitments and show up,” Chopik says. “You have to honor the non-important stuff.”
America’s housing supply was built for a world we no longer live in. But what will replace it?
As the nation turns 250, that is one of the most important questions we face in the coming decades. Building enough homes, of the right kind, and in the right places is a prerequisite for economic opportunity and growth. Our crippling housing shortage is upstream of many of the problems that ail the US, from our cost of living and increasingly zero-sum politics to our seemingly intractable national bad mood.
The root of the problem is that the United States governs housing under a nearly century-old paradigm that’s been cracking under growing strain. Since the end of the Great Depression and World War II, when the baby boom massively increased the country’s population and millions of Americans sought relief from derelict urban housing, suburbia has been the country’s default blueprint for development. Big single-family homes, two-car garages, and giant strip malls were not merely consumer preferences. They were also written into law by rigid zoning codes — the rules that dictate what kinds of things can be built where — incentivizedby midcentury lending standards, and absorbed into the professional common sense of planners and builders.
Inside this story
America’s housing crisis isthe result of an old development model that pushed the country toward single-family suburbia, making housing scarcer, more expensive, and more sprawling.
In the next 50 years, that model will become even less suited to American life.
The suburbs will be central to any housing transformation.
YIMBY reforms are necessary, but probably not sufficient. We also need good urban planning.
The future could be hyper-sprawling, or more vibrant and livable, or, more likely, a combination of both.
The system shaped not just the suburbs, but also many cities, and has kept homes scarce, expensive, and sprawling, resulting in a housing affordability crisis that has come to dominate politics. And in the decades ahead, this pattern will become even more misaligned with the reality of American life. Households are getting smaller, and Americans are getting older. If today’s low immigration rates continue, the US Census Bureau projects the country in 2076 will have fewer families with children and working-age adults, and far more seniors — the inverse of the demographic transition that drove the great suburbanization. Climate change and new technology, such as driverless cars, will also force cities and suburbs and populations to adapt.
US history offers reasons for optimism, showing repeatedly that we can reorganize ourselves with extraordinary dynamism when the occasion calls for it. Our cities have already lived many lives, growing from tiny outposts into world-leading metropolises, before receding again in the wake of suburbanization and de-industrialization, and then more recently gaining new life with influxes of younger generations.
The transformations ahead may not be as physically dramatic as those of the American past, but they call for equally monumental cultural and political shifts in our approach to housing. We’re already making progress: The ascendant “yes in my backyard” (YIMBY) movement has persuaded states and localities to roll back restrictive policies that make it essentially impossible to build enough homes. The effects of those reforms are slowly making themselves felt in more affordable neighborhoods.
But there is still far more to do. Housing reformers will need to turn their attention not just to removing bad regulations like single-family zoning and minimum lot sizes, but also toward reviving a role for government in shaping our communities through real, big-picture planning. Doing so would supply a missing piece in America’s housing agenda — making US cities and suburbs not just more affordable, but more vibrant and livable and helping us better use our existing infrastructure. That will matter even more as a shrinking working-age population makes endless outward sprawl harder to sustain.
A more abundant, more varied, and even more fun housing future is not inevitable, but it is decisively within reach. Here is what the future could look like by America’s 300th birthday, if we commit to making ourselves anew.
Suburban retrofit abundance
Arthur Nelson, a professor emeritus of urban planning and real estate development at the University of Arizona, has a few words of warning for anyone trying to report on what cities might look like in a half-century: “You’re not going to be right.”
Urban planners tend not to project many decades into the future because what that future will look like invariably hinges on factors we couldn’t possibly imagine today. The most important unknown for our future population and housing needs will be whether the US opens its doors to many more immigrants, as it has done at times in the past. Assuming immigration rates remain low, however, US population is projected to peak somewhere around the mid-21st century and fall thereafter; by 2076, it will have dropped back to today’s size, on the way to declining further.
Despite that uncertainty, many of the housing abundance advocates, policy experts, and urban planners I spoke to for this piece expressed striking optimism that the future of housing will be better than the present, and enthused about how much can be transformed in 50 years. Start with the suburb, where the majority of Americans live today, and where the future of American housing will be decided.
Imagine that, in 2076, you’re walking through a residential neighborhood in La Mirada, California, a midcentury, southeastern suburb of Los Angeles, one of the regions at the epicenter of today’s housing crisis. The bones look much like the suburbs we know today — gently curving streets, sun-baked yards, low-slung buildings set back from the sidewalk — but the old single-family monoculture in many neighborhoods has loosened: Houses built during the region’s mid-20th-century building boom now have small cottages, also known as accessory dwelling units (ADUs), tucked beside them. Some bigger houses have been subdivided into two homes. Other lots now hold triplexes, fourplexes, and small apartment buildings that sit comfortably among single-family homes. A few houses have become shared homes for seniors who want support and companionship without being cordoned off into a retirement community. (In 50 years, that will include people born in the 1980s, 1990s, and ’00s — me, and perhaps you, too.)
Even as the overall US population has plateaued, this late-21st century Greater Los Angeles might be home to millions more people than today, but it has not had to push all of them farther into the arid desert or the fire-prone hills. Because as many as two to three times more people are living on each acre of land, housing costs have eased. Many people rely on shared driverless cars, freeing up the space that would be needed for car storage, so land that had been parking can be put to better uses.
Perhaps most strikingly different from today’s suburbia, the hard wall between home and commerce — which is near-universally mandated by local zoning codes today — has softened. Near the neighborhood’s edge, where local streets meet a larger main road, a neighborhood grocery and clinic have opened on what used to be strictly residential lots. And, yes: That is a donut shop running out of a neighbor’s garage. A few doors down, an old three-bedroom has become a small co-working space, and a converted garage houses a bicycle repair shop. Housing has not only become more affordable, but with more of the rituals of daily life mixed in, the suburb has gained a richer, more connected public sphere. There are simply more people around — walking, talking, and lingering.
Could we get there? Some experts I consulted predicted that simply easing regulations on what can be built in these neighborhoods will unlock a long-suppressed capacity for creative adaptation, allowing suburban areas to evolve in precisely this way. In the suburbs of superstar cities like LA, San Francisco, and Boston, land values are so high that property owners have strong incentives to redevelop single-family lots into more economically valuable uses, like multiple housing units. They just need to be legally allowed to do so.
The YIMBY movement’s recent legislative successes have already put much of the country on that path. More than a dozen states, including California, have passed laws to allow building ADUs on residential home lots, and many others have new laws allowing denser housing, like townhomes and small apartment buildings in these areas too.
“I suspect it’s just a matter [of time] before the rest do the same,” M. Nolan Gray, senior director of legislation and research for the advocacy group California YIMBY, told me in an email. The upshot for the far future of housing is that “detached single-family zoning is dead,” predicts Gray, who is also an urban planner by trade. “I think the typical lot in a (non-HOA) suburb of a typical US city in 2076 will have at least a second unit; perhaps a manufactured ADU plopped in the back, perhaps a McMansion that has been converted into a duplex.”
Such reforms also offer important tools for a graying population. As Nelson has argued, the number of senior households in the US is already growing faster than younger ones, and without zoning flexibility to redevelop single-family homes into smaller units or adapt them to the changing market in some other way, older homeowners would face the prospect of being stuck with large, hard-to-maintain houses.
Even more dramatic suburban retrofits might come in commercial districts — think aging, abandoned malls, strip malls, and “power centers” built around big box stores and even bigger parking lots. As Vox’s Rachel Cohen Booth has written, there is a growing movement to turn those sites into housing.
An increasing number of states have started allowing apartments in commercial districts, where building multifamily housing is an easier sell politically than allowing it in residential areas where neighbors might resist.
Meanwhile, Gray added, communities across the country have been very rapidly repealing parking minimums — the fixed number of parking spots required at every residence and business. As minimums are phased out, parking lots can be redeveloped into housing and other uses better than acres of underused, heat-trapping asphalt.
“I expect most of today’s strip malls and shopping malls will gradually be converted into mixed-use pocket neighborhoods,” Gray predicts — a distinctly American version of a much older human pattern of development, where homes, shops, services, and public life are allowed to coexist.
Maybe we need an urban planning revival
Despite early signs these reforms are nudging American housing toward a better future, the national rate of new home construction has barely moved, and forecasters expect little change in 2026. That owes less to the reforms than to the broader economy: mortgage rates largely stuck above 6 percent since 2022, which raise borrowing costs for builders and freeze existing owners in place; rising material and labor costs; and a thinning construction workforce worsened by President Trump’s immigration policies. Where YIMBYs have passed new laws, many local governments prove adept at finding ways to flout them. Housing advocates will have to commit themselves to a long fight, until change exists not only on paper, but also in the real world.
Even then, unleashing the free market alone won’t solve every problem with how American cities and suburbs are built and organized, or how they feel to live in.
Those failures are visible everywhere: Have you ever wondered why so many residential streets wind around in aimless, circuitous patterns, disconnected from the town around them? Or why you are forced to endure a nightmare commute to drive just 10 miles? These are all failures not just of too much regulation in the form of rigid zoning, but also of an absence of coherent urban planning.
Robert Goodspeed, an associate professor of urban planning at the University of Michigan, points to good planning as an essential missing element in today’s housing reform movement. “I think that the YIMBY movement has completely missed the importance of planning,” he told me. “Even if we repealed all zoning, it still doesn’t realize a well-designed, well-planned community that has high quality of life.”
The zoning approach works so poorly because it micromanages what can or cannot be built on any given parcel of land. It’s a set of prohibitions on what the private market is allowed to do (made without regard for how people actually want to live): No apartments can be built on this street, even if there’s an enormous amount of demand to live there; no coffee shop may be opened on that corner, even if it would fill up with neighbors delighted to make it part of their daily routine.
Urban planning, on the other hand, at its best is concerned with the public realm. It oversees the larger body of a city or area and provides the connective tissue of its infrastructure — roads, transit, parks, sewers, and other utilities — that links up the space, something the private sector can’t provide. It allows cities to function as a cohesive whole and has the potential to give the public access to what a community has to offer.
The art of good street design
One of the most important jobs of urban planning is to lay out a street network, like the gridiron plans of New York and many other US cities. In most American suburbs, particularly outer suburbs that were built out post-World War II, residential streets have been organized much differently, in a meandering, maze-like manner scattered with cul-de-sacs and other dead ends that disconnect the neighborhood from the surrounding community.
“You have to ensure that every neighborhood is connected to another,” Alain Bertaud, former principal urban planner at the World Bank, told me. “The market does not provide that. The job of the planner is to get involved much less in what is private, and much more in what is public.”
Street design is also important for the feasibility of densifying suburban areas with more diverse and affordable housing types — for the YIMBY agenda itself. Density needs permeability: A connected street network can more easily absorb more residents because it gives people many ways to move through it; a network filled with dead ends, on the other hand, concentrates traffic through a few choke points, making even modest population growth feel to neighbors like an overload.
In the late 19th and early 20th centuries, American planners were animated by real civic ambition, laying out future-minded street grids that could continue to grow and connect the residential and the commercial. One reason more recent development has been so poorly designed, Gray argues, is that planners have become so bogged down enforcing the tedious minutiae of zoning codes. “Zoning has utterly consumed planning, to the point that many city planning departments now do little that would resemble what a normal person might think of as planning,” he writes in his book Arbitrary Lines. Gray calls for abolishing zoning altogether, and freeing up municipal planning offices for more useful work that can accommodate the changes we know we need to make to our housing stock.
Easier said than done, of course. The US comprises thousands of individual cities and suburbs, each with its own zoning code, and they will not surrender that authority willingly.
But it’s not crazy to imagine that, in 50 years, planning in the US looks very different from today. Local governments derive their authority to zone from states, Gray points out. And just over the last few years, states from Montana to Maine to Oregon have been wresting certain zoning powers away from cities and suburbs. That shift could provide the seeds for a future where planning is run on a more unified, regional level, much like it is in peer countries like France and Japan. Local planners might then be empowered to focus on what matters — facilitating humane growth in places that people want to move to, and creatively solving the challenges that will arise from retrofitting a built environment that was not designed to accommodate that sort of evolution.
Could we just…start over with all-new cities?
One of the country’s most audacious attempts to revive American urban planning is unfolding in Solano County, California, roughly an hour north of San Francisco. There, a controversial, billionaire-backed company is advocating an iconoclastic solution to the Bay Area’s housing affordability crisis.
Instead of fighting through red tape to get permission to add a few homes in Palo Alto or Marin County, the startup California Forever wants to build a new city from scratch. Forty years after construction begins, the company hopes, it would be more populous than the St. Louis, Orlando, or New Orleans of today, providing homes to around 400,000 people and jobs in advanced manufacturing, shipbuilding, and other industries.
The project has not yet broken ground, and, ironically enough, likely won’t be able to for several more years, as it moves through environmental review and other required regulatory steps. But it eventually hopes to prove that it’s still possible to build physical things in the world’s tech capital, the place that has transformed everyday life at extraordinary speed but still struggles with the elemental task of making room for people to live. The project has won support from manyprominenthousing reform advocates, who welcome it as a bracing challenge to an untenable status quo that has meaningfully damaged the US economy. (According to one widely cited study, restrictive housing policies in superstar metro areas, including San Francisco and San Jose, lowered overall American GDP growth by around 36 percent between 1964 and 2009 because they prevented more people from moving to those highly productive cities.)
Despite its Silicon Valley provenance, California Forever’s most interesting ambition is less futuristic than throwback. It hopes not merely to add a mass of badly needed housing stock to the Bay Area, but to deliver it in the form of a pedestrian-centered city of the kind that hasn’t been built in the US in a hundred years. Its architectural renderings show handsome mid-rise townhomes, apartments, and single-family homes along shaded, walkable streets with a bus rapid transit system, all organized around a traditional grid network of streets. Gabriel Metcalf, the head of planning for California Forever, told me he predicts the city will eventually have the lowest per capita rate of car travel anywhere in the US other than New York City.
Of course, the project in its full form might not get past regulatory hurdles. Even if it does, it could end up being too expensive for the people who work in its schools, grocery stores, and coffee shops to live in, especially with California’s high labor costs, environmental review, and other expenses baked in. It’s also very difficult to build a successful city from the top-down.
But whatever becomes of this movement to build entirely new cities, it is tapping into a real gap that already exists in the US housing market: Despite our reputation for being car-loving suburbanites, many Americans want something different. A 2026 Pew Research Center survey, for example, found that 44 percent of respondents say they prefer to live in a walkable area — even if the homes are smaller (other estimates actually put the number higher). The surest prospect for making that a reality might not be new cities, but repairing existing ones.
Alicia Pederson, a Chicago-based writer, researcher, and founder of the organization Courtyard Urbanist, predicts that, with good urban planning, we could in 50 years see a “golden age of American city-building.” With a graying and eventually shrinking national population, many cities will have to work harder to attract and retain residents by offering a better quality of life, she told me in an email. That might mean providing better housing options that make vibrant, walkable life accessible to more Americans without sacrificing the benefits of suburban single-family homes: spacious, sunny housing units and abundant green space. The kind of courtyard blocks common in some European cities offer one elegant solution: They occupy an entire city block, with a perimeter of mid-rise buildings and an interior yard. And they can accommodate homes in a range of sizes, which are more flexible and easier for aging people to maintain than detached houses.
The future is still up for grabs
It’s entirely possible that sheer inertia keeps the US on its current sprawling trajectory as it approaches its 300th birthday, with reforms producing only a scattering of ADUs and boxy apartment buildings often derided as “gentrification buildings,” rather than any deeper transformation of the American built environment.
Arpit Gupta, an associate professor of finance at New York University who I consulted because of his talent for poking holes in urbanist orthodoxies, predicted that the US by 2076 will actually see “a dramatic increase in sprawl” thanks to the future adoption of autonomous vehicles. That’s because he and many other transportation researchers believe many people would be willing to tolerate longer commutes in self-driving cars than they do in cars they have to drive themselves, providing one more reason to push housing ever outward. Minus the self-driving cars, that’s what’s happening in the hyper-sprawling and still growing Sunbelt, where new housing continues to be built farther and farther from city centers.
But there are many other paths we might take. Domestic migration may begin shifting northward in the coming decades, amid a warming climate and water scarcity in the Southwest. Many Midwestern cities are showing signs of renewed growth (may I recommend moving to Madison, Wisconsin?), offering a chance to build more and better housing on the region’s extensive pre-war urban bones. And it’s much too early to assume that AVs will massively increase the amount we drive, Michael Manville, a professor of urban planning at UCLA, cautioned me. Different policy choices could lead to shared self-driving systems that encourage less car ownership and more density.
The future won’t vindicate every utopian blueprint — nor should it. Our housing system ought to be open and capacious enough to accommodate the country’s diverse and evolving preferences. The way we’ve organized housing for much of the last century has given us not only pervasive unaffordability, but also too few choices, too few versions of the American dream. That very scarcity is part of why Americans today are so angry at one another: It feeds the sense that we’re fighting over scraps.
But if we make room for more ways of living together and think big about how to get there, we may find ourselves less trapped by the failures of the present than we think. Cities often surprise us: Fifty years ago, who could have predicted that places like New York City and Boston, then battered by population loss and disorder, would recover so dramatically?
The trajectory we take in another 50 years will surely confound our predictions, too. And that’s reason enough to build something less brittle than what we inherited — a housing approach with enough room, variety, and imagination to enable American life to change again.
When I first heard about the new Apple Upgrade program, which lets you lease devices like iPhones and MacBooks for a monthly fee, I was offended. It amounts to paying a tithe to one of the world’s richest companies just to borrow devices for a couple years, rather than buying them outright. You could then choose to purchase the device, which is outdated at that point, or upgrade and keep paying that monthly fee. You may never own an iPhone again.
Then, as my mind wandered to the stack of old phones in my closet, it occurred to me: What’s so great about owning these things to begin with?
Apple, of course, would love to sell you a new iPhone for keeps. Its most advanced model, the iPhone 17 Pro Max, will set you back $1,200, a price that’s expected to rise soon due to the global shortage of storage and memory chips. You can sign up for an installment plan — most carriers offer these, as does Apple through its credit card — and pay it off in two to three years. Or you could lease the thing for $35 a month under the new Apple Upgrade program. You can pick a 12-, 24-, or 36-month lease, depending on the device, and you don’t get to keep the phone at the end of the term unless you decide to buy it by paying off the remainder of the retail price in one lump sum. (This is similar to the controversial rent-to-own model you find at places like Rent-a-Center.)
For the financial side of the new program, Apple has partnered with none other than Klarna, the “buy now, pay later” giant. When you go to lease a new device, Klarna runs a soft credit check and decides if you’ll be able to cover the monthly payments. When I asked Klarna, the company did not tell me where it draws the line here, but it’s worth noting that critics have accused Klarna of a lack of underwriting and of lending to people with subprime credit scores. If you miss three consecutive payments, Klarna will terminate the lease agreement and possibly send a collection agency after you.
“How do I know people aren’t getting a good deal here? If they were, Apple wouldn’t be offering it.”
Aaron Perzanowski, University of Michigan law professor
While there was some speculation last week that Apple might lock people out of leased devices if they failed to pay their bill, Apple confirmed to me that it will not put limitations on device functionality due to missed payments or default. If you want to cancel the lease, you face an early termination fee. If you choose to keep paying the monthly fee, you can keep upgrading with new lease agreements for new devices every few years, existing in this cycle indefinitely.
If you’re someone who likes to get a new iPhone or MacBook on a regular basis, Apple’s new leasing option might make a lot of sense. The monthly fee to lease these devices is cheaper than the payment plan to buy them, and electronics are depreciating assets. If you own one, you can sell it or trade it in for credit toward a new device, but they’re all worth less and less as time goes on. Furthermore, Apple eventually stops supporting old devices through software updates, so they might just stop working at a certain point. Put another way: You may own the phone, but you’re still just licensing the software that makes it work.
Renting an iPhone does sound bleak, though. The United States is suffering through an affordability crisis as prices across the board rise in the face of new tariffs and new wars. Meanwhile, AI is promising to transform the way we work if it doesn’t simply steal our jobs first, adding further insecurity, and the data center boom is making electronics more expensive. This era of economic anxiety is pushing people to use “buy now, pay later” services like Klarna and Affirm to pay for groceries or a tank of gas. (These companies faced scrutiny by state attorneys general a few years ago for operating like predatory lenders.) And now Apple, surely suspecting that many people can’t afford to pay full price for new phones, is inviting us to rent our devices at a monthly fee that undercuts the path to ownership.
Apple could have just called this the Apple Rental program, by the way. Lease sounds nicer, though, like something you do with a car.
“It is funny that they frame it as not a loan but as a lease,” Louis Hyman, a history professor at Johns Hopkins University and author of Debtor Nation: The History of America in Red Ink. He added that “leasing” has class implications, suggesting that you’re either someone who needs to have the newest things but can’t afford them, or that you’re so wealthy, you’re indifferent to money.
Suffice it to say, the bulk of people who will soon be leasing their iPhones are probably not the ones who are indifferent to money.
Apple adopts its final form
The new Apple Upgrade program is the company’s latest customer acquisition strategy. As the rising price of hardware has made cheaper Android devices or the refurbished market more attractive, Apple is offering upgrade enthusiasts and budget-minded users, including people who simply couldn’t afford to buy Apple products in the past, a deal to join the company’s ecosystem. After all, keeping people supplied with new iPhones and MacBooks also helps keep them subscribed to Apple services, like iCloud, which now makes the company more money than Mac, iPad, Apple Watch, and other accessories combined.
If Apple’s financial future hinges on getting more and more people to subscribe to these services, it’s only natural that the company would want to lower the barrier to entry. So Apple is betting that by letting people use but not own its products, it will extract more profit in the long run through lease payments and subscription fees. After all, it wasn’t that long ago that it seemed like nobody was interested in upgrading their iPhone, since the new phones looked so much like the old ones. Now, Apple is just trying to get everyone on autopay, effectively subscribing so that they get the latest devices when they come out.
There’s not necessarily any harm in giving people a cheaper way to access expensive but useful products. For more than a century, installment plans have enabled people to buy modern conveniences like sewing machines, radios, and eventually, televisions. Leasing is a popular way to keep yourself in a new car, sometimes with free maintenance. Meanwhile, cellular carriers have a long history of helping their customers buy phones. Nearly two decades ago, you could get an iPhone 3G for $199, thanks to subsidies from AT&T, which the company recouped in service fees over the course of your contract. Sprint and T-Mobile have even offered unlimited upgrades through leasing programs of their own in years past.
Apple previously worked with Citizen One Bank to offer loans to customers who wanted the option to upgrade their iPhones every year. The payments were higher and they included a fee for AppleCare, but every year, you could trade in your current phone for a new one. If you didn’t want to upgrade, you could simply keep paying the installments, and you’d eventually own the phone. Most carriers now give you the option to set up a payment plan to purchase a new device that simply amounts to the retail price of the gadget divided by the number of months you’ll need to pay it off, usually 24 or 36, with zero interest. That makes it easier to get your hands on an iPhone Pro Max, and if you pay it off in full, it’s yours for life — or until Apple convinces you to buy another new iPhone.
The difference between paying those monthly installments and paying a monthly lease agreement, of course, is that the former puts you on the path to ownership. The latter simply puts you on a path to make a decision: Do you want to buy the thing and recoup some of the money you’ve already spent, or do you want to keep making payments?
“What ownership ideally gets us is independence,” Perzanowski said. “It gives us autonomy. It gives us the ability to function in the world without relying on third parties.” He went on to explain how moving from owning a product to leasing it means you’re stuck with that third party. “I’m tied to that manufacturer in a way where they get to exert a fair amount of control over my behavior,” Perzanowski said. “Historically, we’ve been primed, especially in the United States, to resist and reject that kind of control.”
One great thing about owning an iPhone or a MacBook outright is that if you lose your job to AI, you don’t have to come up with a monthly payment in order to keep using those devices to apply for new jobs. Another great thing about ownership is that should you need a couple hundred bucks, you can sell that old phone or laptop and pocket the cash. Maybe the best thing about owning these devices is that you can repair them and keep using them for many years — or at least until Apple stops supporting them.
That doesn’t mean leasing never makes sense. If your digital life revolves around always having the newest devices and you upgrade every year or two no matter what, you might actually save money by doing so through Apple’s leasing program. If you need an iPhone or MacBook right away but can’t afford to pay full price or even cover the monthly payments on an installment plan, a one-year lease could be a good solution.
Invariably, when you lease anything, you’re entering into a contract, one that comes with consequences if you break it. Leasing an iPhone means you’re tied not only to Apple but also to Klarna for the next 12 to 36 months. If something goes wrong — you lose your job, you lose or break your phone, or you simply don’t want the device any more — you’re subject to the terms and conditions of these big tech companies. If you keep renewing your lease, you may very well end up spending more on a phone than you would have if you’d bought it outright. That would be fine with Apple, of course. It has shareholders to please.
Correction, July 30, 1 pm: This story originally misstated how the previous Apple upgrade loan program worked; it allowed phone trade-ins every year, not every two years.
You don’t have to believe in theology to go to church. | Pete Gamlen for Vox
Hi readers! I’m Shayla Love, a science journalist and longtime fan of Your Mileage May Vary. I’m honored to be subbing for Sigal while she’s out on parental leave. I’ll be diving into your questions as a way to help understand human nature and our choices through multiple lenses: philosophical, psychological, and beyond. Please send me any emotional, body/brain, sociological, perceptual, or other kind of life quandaries you might have.
My mother is religious, and I can tell that it brings her peace of mind to think I share some of her religious views. For this reason, I currently attend church with her on Sundays. However, I hesitate to tell her directly that I do not necessarily share her beliefs, as this would likely upset her and would not substantially improve my own quality of life.
At the same time, attending church while knowing I do not fully believe feels somewhat disingenuous. I am unsure whether continuing this practice is the more ethical choice or whether honesty, despite its potential emotional cost, would be the better path. On the other hand, would it not be selfish to prioritize my own sense of integrity over my mother’s peace of mind, especially when the “cost” to me is relatively small: attending church once a week in order to preserve this tacit understanding?
Dear Pew-Warmer,
Your question raises two interesting issues: whether to tell your mom that you don’t share her religious beliefs and whether to still attend church with her, even if you don’t share the faith. They might seem to be part of the same quandary, but teasing them apart a little more, we’ll see that your church attendance doesn’t necessarily require as much dishonesty as you may think.
First, no matter what you decide, it could be helpful for you to know that you’re far from alone in managing different beliefs within a family. The amount of mixed-faith families has been steadily increasing, often because — like you — children grow up to have different beliefs from their parents. And this includes people who decide to no longer follow any prescribed religion at all. A Pew Research Center survey done in 2007, for example, found that 44 percent of Americans had changed or left the religion they were raised in. Relationships between people of different religious leanings are common now, too. A different Pew survey from 2015 found that 39 percent of couples married after 2010 identified as mixed-faith (again, including people who identify as non-religious).
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How do all of these people deal with being married or related and believing such different big things? It’s not easy. In a more recent Pew survey from 2023, more than a third of parents said it was extremely or very important that their children have the same religious views as them, which is in line with your sense that your mom would like to share her faith with you. And this is where much of your tension seems to lie. But, perhaps, I can bring you some solace by sharing that the overall data on all of this is more nuanced. I reviewed some qualitative studies — which include interviews — on religion in families to hear from people on both sides of precisely what you’re grappling with.
In general, parents do seem to wish for their kids to have the same faith as them. As a highly religious Christian father said in one study: “How to pass our belief to our next generation is a burden to me. … We want them and their next generations to have God’s blessings.” And that makes sense, especially for a parent who belongs to a faith tradition that comes with everlasting consequences for people depending on their beliefs and behaviors.
But, of course, religion is more than a narrow set of rules and consequences. Each contains an elaborate offering of traditions, beliefs, and values. Many very religious parents responding to the same survey said they understood it was up to their children to choose whether to continue in the tradition or not and that what truly important to them was knowing that their children shared the same values. Religion served as a proxy for that. That same 2023 Pew survey referred to earlier found that the majority of religious parents thought it was more of a priority to pass on ethics and values, as well as traits like ambition and being hardworking, than religious belief alone.
There can even be upsides for relationships when some core beliefs differ, as one 2022 study suggested. Interfaith families — by having to accommodate multiple beliefs — have the opportunity to actually become stronger. The authors concluded that such “families are not more turbulent or problematic than other family relationships” but actually had many additional strengths, like improved communication skills.
I won’t try to predict your mom’s response based on others’ replies in a study. Nevertheless, I think these findings suggest, at the very least, that it’s not automatic that parents cannot handle it when their children don’t follow their own faith. From the experience of these families, I suggest, if you decide to be more honest with your mom about this, you should emphasize the moral qualities you have in common — and that you plan to maintain. It could be helpful to stress that your decision is a genuine one; taking any other position wouldn’t be true to what you really feel.
No matter the outcome of this conversation, though, your quandary about whether you should go to church at all won’t be solved. You say that it might feel disingenuous or pose a problem for your integrity to attend church services if you don’t believe. That assumes that your presence at the church is endorsing a belief in God, or in the theology of that religion, or that the latter are required for the former.
I wasn’t raised with religion, and, instead, grew up around several atheists who worked as scientists. A few had a pretty disparaging view of the belief in God, which they saw as empirically unsound. Yet, as I got older, I began to notice some streaks of religiosity in their positions, like a dedication to the idea that science is the only tool with which to understand the world, a view that’s sometimes called “scientism.” Science is an excellent way to figure out how the world works, but there are other aspects of life — like art, music, spirituality — where it can fall short. I bring this up to say that religious thinking can rear its head even in the non-religious. And within a religious framework, you may discover non-religious elements too. A sociologist from the late 19th and early 20th century, Emile Durkheim, would push back on the idea that going to church means you believe in God, which helps me understand what I saw in my family.
Durkheim wanted to understand how religion functioned in society. He dismissed the idea that religion, at its core, was about supernatural events and God (or gods). In his 1912 book The Elementary Forms of Religious Life, he examined Australian Indigenous religions to come up with theories about what all religions had in common. He argued that religion emerges when a group of people get together and agree upon what is sacred and what is profane, and then they act in ways that support those categories.
I’ll add that Durkheim’s views on religion have been questioned over the years. For starters, he vastly oversimplified the Indigenous religions he focused on. Yet, I think one of his central ideas — that religion is primarily an expression of agreement within social groups — is useful in making the act of your going to church less about your individual endorsement and more about participating in a group with shared values.
Durkheim didn’t think that the concepts of “sacred” and “profane” applied only to those within organized religions; it was a more general principle in how societies were organized. Secular groups like sports fans and political parties also gathered together to perform rituals about their shared definitions of what is sacred. Following Durkheim, you could see your choice as less a theological one and more a social one. There could be plenty of values at your mom’s church that mean something to you, like community, taking care of others, and acting morally.
Durkheim’s theory does require you to be a participant, however, in upholding these values. If that doesn’t apply to you, there is still a way to engage with those with differing beliefs with curiosity, like the psychologist William James.
His book, The Varieties of Religious Experience, was based on a series of lectures he did at the University of Edinburgh. He was assigned to do 20 talks, and he thought he would dedicate the first 10 to describing “man’s religious appetites” and the rest on various philosophical interpretations. Instead, he became so engrossed with recounting people’s religious experiences that the subject took up all of his lectures.
James was not a very religious man himself, and so, his thirst for learning about religion is remarkable. In the introduction to The Selected Letters of William James, the novelist and literary critic Elizabeth Hardwick wrote how James’s tolerance for “nuts and cranks, his mediums and table-tappers, his faith healers and receivers of communications from the dead” sometimes confused his peers. How could a man of science be so interested in visions and conversions?
Like Durkheim, James wasn’t focused on whether religion was true. He had very little interest in theology itself; he fixated on the psychological — the feelings that came with being religious.
James thought that these feelings — which we all share — were the deeper source of religion. All organized religions came later; they were emotions transformed and organized. He recognized that there were true emotions at the heart of religious conventions, and that people turned to religion to solve human concerns: melancholy, uncertainty about the future, morality, the need for community, expressions of joy. Yet, he was an outsider. He didn’t require himself to be a convert in order to be curious.
James and Durkheim have different approaches, but they both offer clues as to how to turn toward shared social values and how to be curious about others’ emotional lives while not having to commit (or pretend to commit) yourself to beliefs that you don’t have.
You say that the cost of going to church once a week would be relatively small for you, and, so, I’ll assume that your concerns don’t include participating in a religion that is openly hostile to you or your identity. It would be difficult to participate in shared sacred-making with a group of people that places you in the “profane” category. And being curious about others is a highly generous act that, if not reciprocated, feels dismissive. I hope that by opening yourself up to your mom’s emotional life that underpins her faith, she can do the same in return, even if your own interior landscape isn’t transmuting into religious belief. And it may well be that a genuine connection is what she wants — not a false one.
A final thought related to Durkheim: He came up with a lovely concept called “collective effervescence”: when many people have the same big feelings together, and the emotions crash together into one big collective firework of expression. To see an easy example of this, watch videos of what happens at events like World Cup matches as teams and fans celebrate big wins. This experience comes about by shared feelings of any kind. If it still feels discomfiting to go to church with your mother, perhaps you can find another way to share ecstatic emotions together and come up with a new definition of the sacred.
Bonus: What I’m reading
Speaking of family, Jonathan Weiner writes in this ethereal piece in the American Scholar about how his robust memory skills compare with his brother’s patchier recollections as they both remember their father.
In Harper’s Magazine, Katie Thornton tries to learn the utopian, universal language of Esperanto.
And my favorite thing I read last week: an older piece of prose from the poet Elizabeth Bishop that I came across in a used bookshop in London, called “The U.S.A. School of Writing.” (It was originally published in The New Yorker.) Bishop takes a scammy job as a writing tutor over the mail and finds surprising connections with oddball students and co-workers.
Capital markets have signaled their faith in Anthropic and OpenAI’s impending hyper-profitability, valuing each at nearly $1 trillion. | John Ricky/Anadolu via Getty Images
The AI industry’s investors and critics don’t agree on much. But many in each camp share at least one basic conviction: America’s top labs are about to make a killing.
Capital markets have signaled their faith in Anthropic and OpenAI’s impending hyper-profitability, valuingeach at nearly $1 trillion. Many of Silicon Valley’s progressive adversaries also expect the labs to grow filthy rich but fear the implications, warning that AI-induced automation could transfer vast sums of money from ordinary workers to a handful of giant tech companies. Sen. Bernie Sanders’s call for nationalizing the top AI labs rests partly on that concern.
Key takeaways
The AI industry may be more competitive than investors expected.
Chinese labs are producing models nearly as powerful as Claude and ChatGPT — and dramatically cheaper.
That could make frontier AI a low-margin business.
A world of cheap, open-source AI would bring both promise and danger.
But recent advances in Chinese AI call all of this into question.
Over the past two months, Chinese companies have released three AI models that are nearly as powerful as America’s frontier systems — and radically less expensive.
In June, Beijing’s Z.ai debuted a model that performed nearly as well as Claude and ChatGPT’s second-tier systems on independent benchmarks. Weeks later, another Chinese firm, Moonshot, unveiled “Kimi K3,” a model that allegedly outperforms all of its American rivals except for the very latest versions of Claude and ChatGPT. Finally, just days ago, Alibaba launched a preview of Qwen3.8 Max, which purportedly outclasses even OpenAI’s most advanced systems, while trailing only Claude’s Fable in its capabilities. (Disclosure: Vox Media is one of several publishers that have signed partnership agreements with OpenAI. Our reporting remains editorially independent.)
These developments don’t merely threaten America’s AI giants with stiffer competition in the race for superintelligence. Rather, they raise a more harrowing prospect: that the AI race’s ultimate rewards will be far smaller than anticipated. In a world where new advances can regularly be leapfrogged by cheaper upstarts, hoarding the technology — and its profits — will be harder for any one company to do.
In other words, building a machine God might not be as lucrative as it’s cracked up to be. AI, it turns out, may “want to be free.”
How AI was supposed to pay off
To see how China’s new models threaten Anthropic’s profit expectations, we must first examine why those expectations have been so high.
This is not entirely self-evident. After all, AI labs aren’t much like the hyper-profitable tech giants of the 2010s. Facebook and Airbrb were relatively capital-light businesses with ultra-low marginal costs (adding a profile to Facebook or listing to Airbnb costs the companies virtually nothing). And once each gained a foothold in their respective markets, network effects enabled them to retain formidable positions without needing to constantly upgrade their products.
Building a state-of-the-art AI company is a much more involved — and astronomically more expensive — endeavor. To get to the frontier, Anthropic and OpenAI have sunk (at least) tens of billions into semiconductors, data centers, power plants, and other capital investments. Staying at the cutting-edge, meanwhile, compels them to perpetually churn out evermore costly models.
To put a new Claude model through its initial training — in which it spends months digesting the internet and sussing out statistical patterns within its text — can now cost hundreds of millions of dollars. And such foundational computation is only the beginning. A truly superlative model requires several additional months of fine-tuning. Armies of contracted experts — such as computer scientists, physicians, and mathematicians — tutor the models, grading their answers and guiding them towards better ones. Then the AI systems complete millions of rounds of practice, in which they learn through trial and error how to solve countless problems. This arduous process, known as “post-training,” compounds the costs of a single model’s development.
All of which raises the question: Why would investors expect businesses with a cost-structure this challenging to be not merely profitable, but massively so?
There are (at least) two answers. The first (and most obvious) is that the market for superintelligent machines is liable to be vast. Frontier AI systems promise to reduce costs and improve performance in myriad white-collar sectors. And Anthropic’s soaring revenues indicate that firms do, in fact, find Claude useful. A company like AirBnB has earned billions by revolutionizing a single industry; imagine then what a technology that remade virtually all industries might be worth.
Of course, plenty of technologies are valuable but not massively profitable to produce. After all, in well-functioning markets, competition should eventually erode individual firms’ margins, even if the underlying technology continues generating huge value.
But this is where the second answer comes in: Frontier labs’ immense costs are a burden, but they’re also a safeguard against competition — or, in industry parlance, a “moat.”
Startups may be able to afford to build or acquire more rudimentary models, many of which are “open source.” But, the thinking goes, they won’t be able to deliver Claude Fable-level performance without raising giant amounts of capital. And what investors will be willing to pour hundreds of billions into an AI pipsqueak that’s light-years behind Google, Anthropic, and OpenAI?
Alas, the Chinese AI labs’ rapid progress — and the way it was achieved — suggest that Anthropic’s moat may be shallower than previously thought.
How Moonshot swam Anthropic’s moat
The existence of powerful, Chinese AI systems is neither new nor surprising. Xi Jinping’s government has made vying for global AI dominance a key economic goal. And China’s DeepSeek, which also has stunned US companies with its lower-cost competitive models, surpassed ChatGPT as the most-downloaded free iPhone app more than a year ago.
The latest models, however, have dramatically narrowed the gap in capabilities between frontier American systems and their Chinese rivals. Just as critically, they’ve done so in a manner that other, relatively underfunded AI upstarts might be able to emulate.
Alibaba and Moonshot needed to invest massive resources to train their base models. But they allegedly found a low-cost way to refine those models into near-frontier systems: Just ask Claude.
Or, more specifically: Engage Claude in 16 million conversations, using 24,000 fake accounts. In each of those exchanges, ask the model to not only answer countless difficult questions but also, walk you through its reasoning, step by step. Then take all of this data and feed it into your own model as study material, training it to respond to the world’s most challenging queries as Claude would.
Through this process — known as “distillation” — an AI lab can replicate virtually all of a frontier model’s capacities, without sinking vast sums into human experts and post-training computing runs.
China’s AI labs have not admitted to using distillation. But OpenAI and Anthropic both reportedly uncovered Chinese distillation attempts earlier this year. And some of the new models appear to display tell-tale signs of distillation in conversations with ordinary users; Kimi K3 has routinely identified itself as “Claude.”
Chinese AI companies are hardly alone in using distillation to catch up with frontier labs. Earlier this year, Elon Musk admitted in court that xAI enhanced Grok’s capabilities by running distillation techniques on Claude and ChatGPT. Nonetheless, China’s latest models appear to demonstrate that distillation can help take a second-tier model to the frontier’s threshold.
America’s frontier labs have tried to defend themselves against such imitators. But this is technically difficult when distillers can assemble massive networks of bots, each asking an inconspicuous number of questions. And legally, it is difficult for America’s AI giants to argue that distillers are stealing their intellectual property. After all, in a sense, China’s copycats are merely doing to Anthropic and OpenAI what those companies did to journalists, coders, lawyers and other specialists: Feeding their public-facing outputs into a model, which then replicates their capabilities by discerning underlying patterns within the text.
Oh, and China’s giving these models away
The new Chinese models would have caused Silicon Valley enough headaches, if they merely provided stiffer competition, while demonstrating the power of distillation.
What makes Kimi K3 and Qwen3.8 Max especially threatening to the American AI giants’ profitmaking potential, however, is that they are officially open source — meaning that the models’ parameters can be downloaded for free. (Alibaba and Moonshot have not yet released these parameters, but they say they will shortly.)
In other words, any company or hobbyist with enough computing power will soon be able to run a near-frontier Chinese model on their own hardware, modify that model to better serve a specialized purpose, and then sell access to their new version — without paying Alibiba a single yuan.
As Kimi and Qwen grow more capable, their market-share is likely to grow, at American AI giants’ expense.
For many of Anthropic and OpenAI’s potential customers, that proposition may be hard to turn down. Most businesses don’t need the world’s smartest AI, just one competent at their enterprise’s core tasks — compiling legal research, answering IT queries, writing working code, etc. A model that produces outputs 90 percent as good as Claude’s — at roughly one-sixth of the cost — will sound pretty good to many corporations.
Further, open source models aren’t just cheaper than frontier systems, but potentially more secure. If you run an AI on your firm’s own servers, then you don’t need to entrust sensitive data to Anthropic, Google, or OpenAI.
All this had led much of corporate America to embrace open-source models, even before the latest versions narrowed the capabilities gap. In a Linux Foundation survey, 63 percent of organizations reported using open-source AI systems.
And increasingly, those models are Chinese. According to Sequoia Capital, one of Silicon Valley’s premier venture capitalist firms, a majority of American AI startups now use open-source Chinese systems. As Kimi and Qwen grow more capable, their market-share is likely to grow, at American AI giants’ expense.
What’s bad for OpenAI is good (and/or catastrophic) for humanity
All this said, it is still entirely possible that OpenAI and Anthropic will justify their colossal valuations. In many highly competitive economic domains, having access to the world’s very best AI model will remain highly valuable. And America’s frontier labs still outperform all their peers.
But it’s increasingly plausible that selling state-of-the-art AI systems will prove to be a low-margin undertaking. In a world of ubiquitous, near-frontier open source models, the AI sector’s big winners probably won’t be its top labs, but rather, its chipmakers and cloud computing providers.
For ordinary people, a future where superintelligence is dirt cheap — and rival AI companies are constantly rising and falling, rather than consolidating into mega-corporations — would look somewhat different than the cyberpunk dystopia that the left’s been dreading.
And not entirely in a good way. For one thing, in that reality, mitigating AI’s biggest risks would be immensely difficult. Having a handful of firms monopolize control over frontier AI systems is bad in many respects. But it does make those models easier to regulate, as the Trump administration’s decision to temporarily block Claude’s Fable in the name of cybersecurity demonstrated.
By contrast, if recipes for ultra-powerful AI models are published all over the internet — and anyone with modest technical skills can modify them at will — then systems willing to help their users hack government bureaucracies or engineer bio-weapons are liable to proliferate.
From another angle, however, the “AI becomes almost free” scenario may look like capitalism at its finest: Retrospectively, such a development would mean that a small number of extremely rich people bankrolled the creation of an immensely useful technology, under the expectation of massive profits, only to see competition erode their returns — and disperse that tech’s benefits across a wider group of businesses and consumers.
Granted, in the case of AI, this process might also generate a super-virus that kills us all. But hey, no system is perfect.
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The termination of a federal contract that pays nonprofit organizations for providing legal assistance to immigrant children will affect 90 organizations nationwide.
Anthony Fauci, the former director of the National Institute of Allergy and Infectious Diseases, during a Senate Homeland Security and Governmental Affairs Committee hearing on Wednesday, July 29, 2026. | Al Drago/Bloomberg via Getty Images
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Surely Anthony Fauci has earned the right to party with Robert De Niro in peace. But instead, America’s embattled former Covid-19 czar was hauled before the Senate today to defend five-year-old diary entries.
Senate Republicans subpoenaed Fauci, the former director of the National Institute of Allergy and Infectious Diseases, as part of a broader effort to dispute the origins of the Covid-19 pandemic.
Fauci is the longtime face of American infectious disease research and has appeared in front of Congress more than 250 times. But this morning — in a tense, highly partisan spectacle — he invoked the Fifth Amendment and refused to testify.
Fauci accused Kentucky Sen. Rand Paul, who’s leading this circus, of nursing an “unhinged” and “obvious obsession” with him. Paul recently released Fauci’s unredacted diary, which includes lots of deeply cringe tidbits about the immunologist’s celebrity hobnobbing…but nothing that materially alters our understanding of the pandemic or Fauci’s handling of it.
“The only conclusion I can reach is that the sole reason he is calling me before this committee is to get me to say something, anything, that could vindicate his repeated public pledges that I end up, in his words, ‘behind bars,’” Fauci said. “Any reasonable person who has followed his unhinged obsession with me would readily come to the same conclusion.”
Fauci occupies an uneasy spot in American politics. To some people, he’s a hero who helped steer the country through a terrifying pandemic. To others, he’s a villain who imposed damaging policies, concealed inconvenient facts, and never answered for his various missteps.
The evidence doesn’t back that darker story. But Fauci’s vilification points to one possibility that is worth taking seriously: As a country, we never adequately reckoned with the mistakes and uncertainties of Covid-19.
Consider the narrative trajectory of the lab-leak theory, which is central to Paul’s vendetta against Fauci. Early in the pandemic, Paul and other proponents argued that the novel coronavirus might have escaped from a Chinese laboratory. Some people went even further, claiming that Fauci had funded the lab’s research and then covered it up. Both theories were treated as ridiculous.
To be clear, the second theory is ridiculous. (There’s absolutely no evidence that Fauci was somehow, improbably involved in the making of Covid-19.) But the consensus around the lab-leak theory has changed. While most researchers still believe the virus spread naturally from animals to humans, a laboratory accident has never been definitively ruled out — and many now allow for the possibility in a way that they didn’t four or five years ago.
The same is true of other pandemic controversies, too. Reasonable people can now debate whether lengthy school closures did more harm than good. Guidance on masks and other measures changed repeatedly, sometimes without a ton of explanation.
None of that means officials acted in bad faith. But we’ve arguably never had the kind of serious, bipartisan examination of the pandemic’s missteps that a once-in-a-century public health crisis deserved. And in the absence of that (naive? impossible?) shared reckoning…we’re getting Fauci’s leaked journals.
One link for later
➨ Check for ticks. Ticks are responsible for a whopping 90 percent of vector-borne disease in the US, but local and county health departments do very little to stop them. To protect yourself, use permethrin spray when you go outside and examine your body for the little buggers when you get home. Throw your clothes in the dryer after a hike, too — ticks hate heat! Who knew.
Before you go…
Did you know…that in Wisconsin, placing certain bets on the prediction market Kalshi can cost you your right to vote? The law dates back to 1849, and it’s one of several state laws that bar voters from gambling on elections.
Today’s trivia: In Greek mythology, who is Hercules’s stepmother? (You can find this and other brain puzzles in Vox’s daily crossword. Look for the answer in tomorrow’s edition.)
Yesterday’s trivia: Yesterday we asked you the name of the Dutch cheese typically coated in red wax. That would be the Edam. In the 15th century, Edam reportedly helped make its namesake city one of Europe’s most important cheese markets.
The report comes as recent court filings allege federal immigration agents in L.A. used racial slurs in body camera footage and text messages when referring to Latinos.