The Week AI Began to Act: The Dawn of an AI Stone Age in Which Machines Have Their Own Tools

How many more times can we report on a week in tech that changed the world? But here we go again…. We just had a week in Silicon Valley where everything, supposedly, changed. At least according to Keith Teare, publisher of the tech That Was the Week weekly newsletter. But last week really really was a special week, Keith insists. It was the week when AI became an actor. When it broke all our traditional software assumptions by becoming an actor, not an app. It was the week AI entered what Keith calls its 'Stone Age' - the moment machines finally got their own tools and began using spreadsheets, databases, and documents without being explicitly told to. If Keith is right, we're about to live in a world where toys talk back to children and cars introduce themselves to their new owners. Yes, AI is in the earliest stages of learning to think for itself. It was, indeed, just another historic week in Silicon Valley.

1. AI Has Crossed the Tool-Use Threshold

This week marked AI's transition from being a tool humans use to becoming an independent actor that chooses and uses its own tools. ChatGPT can now autonomously access spreadsheets, databases, and documents - Keith compares this to humanity's leap from the Stone Age to the Tool Age.

2. OpenAI's $500B Valuation Isn't Crazy - It's Strategic

Despite seeming absurd, OpenAI's path from $50B to $500B valuation in 18 months follows classic tech playbook: prioritize growth over early profits ("early profit is mismanagement"), focus on 90% gross margins, and build the biggest possible "money printing machine" before optimizing for profitability.

3. Software and Hardware Are Being Redefined

We're moving toward a world where software becomes invisible - delivered through conversational interfaces rather than visual apps - and hardware becomes interactive through embedded AI. Think toys that talk back to children and cars that introduce themselves to owners.

4. Creative Generalists Will Thrive, Specialists Are at Risk

AI threatens specialists with rule-based skills (consultants, certain scientists) but enhances "audacious" creative generalists who can think outside the box. AI excels as a servant or co-pilot but can't yet replace original thinking or path-breaking creativity.

5. We're Entering an Age of AI Embeddedness

The future isn't about using AI apps - it's about living in a world where AI is embedded in physical objects and environments, making the entire world interactive. This represents a fundamental shift from digital interfaces to ambient intelligence.

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