Can Cloudflare CEO Matthew Prince save the web from AI?

Today, I’m talking with Matthew Prince, who is CEO of Cloudflare. This episode is part of a two-part series on the future of business. Matthew last joined us on the show about two and a half years ago, at what we thought then was a wild pivot point for the internet — and now it turns out things are even wilder because of AI, and Matthew and Cloudflare are right at the center of it. Cloudflare found in June that bots made up more than half of internet traffic. That number just keeps going up as more and more AI companies scrape more and more of the web, and now as more and more AI agents try and do things for people on the web. Cloudflare sits between websites and all those agents, and allows website owners some level of control: Owners can block all those AI tools, allow them, or, as you’ll hear, only allow those that might pay money for access. Verge subscribers, don’t forget you get exclusive access to ad-free Decoder wherever you get your podcasts. Head here. Not a subscriber? You can sign up here. So Matthew and I talked about how to control all these bots, what kind of mess they’re making of the web, and what kinds of information might be valuable in the future as some of the payment schemes come into focus. 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. AI is also upending everything inside of Cloudflare. Earlier this year, the company laid off more than a thousand people — 20 percent of the company — and then Matthew wrote an op-ed about that decision that ran in the Wall Street Journal under the headline, “How I choose which Cloudflare employees to replace with AI.” That’s pure Decoder bait in every single dimension: AI, big controversial decisions, and org charts, all in one.  And one last thing, before we get going: 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. This interview has been lightly edited for length and clarity. Matthew Prince, you’re the cofounder and CEO of Cloudflare. Welcome back to Decoder. Thanks for having me. I’m really excited to talk to you again. It’s been about two years since you were 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 time for the internet. You are at the forefront of rebooting how companies work with AI. That is the most Decoder bait 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 at the very beginning.  Cloudflare is a complicated, important company. The last time you were on the show, 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? That’s usually what I say when I’m trying to answer a question at a cocktail party and I don’t want to talk to the person any more. What I say if I’m interested in talking to the person more is 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 going to be. We run a giant network. We’re in over 350 cities worldwide, literally thousands of data centers. We have equipment running in all those places, and then we do a handful of things. If you’re trying to put an application or content online, we make sure that it’s safe. If you’re a person or an employee online, we make sure that wherever you go online is safe. We help give people the ability to write applications that can scale to an entire internet audience and run on the infrastructure that we have. That’s the fastest-growing part of our business. We’ve recently started to think about how the business model of the internet is changing dramatically and we’re trying to help shape what that future business model of the internet looks like and make it as healthy as possible. Can I connect the dots between the business model of the internet, how the internet should have worked, and Cloudflare trying to build the internet as it should have been? That is different than, “Cloudflare protects from bad guys.” I will note that’s what you said to me last time, which now makes me feel like you don’t want to talk to me at the cocktail party, but that’s fine. That’s a shift. It’s just a notable shift.  The business model of the internet has dramatically changed because of AI, because of bot traffic, because of AI scrapers, the whole thing. Describe what you think the business model of the internet is right now and what it should be. For at least the last at least 30 years, the business model of the internet has been advertising. It’s not the entire business model of the internet, but it’s reall

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