Back in 2000, the rule of thumb at Microsoft was that each employee needed to average roughly $600K in top-line revenue. Inflation adjusted, that is about $1.1M to $1.2M today. Microsoft was a high-margin software monopoly at peak, so it is not a universal benchmark, but it gives a sense of what disciplined operating leverage looked like even at a company printing money.
Over the last decade, and especially during the COVID-era zero-rate and QE environment, many companies responded to dysfunction by hiring around it instead of fixing it. Cheap capital reduced the pressure to make hard operating decisions. Necessity is the mother of invention, but cheap money suppressed that necessity for a long time.
Then two things changed at roughly the same time. Rates went from zero to five, and Section 174 of the tax code stopped letting companies expense software developer salaries in the year incurred. The R&D amortization rule from TCJA kicked in for the 2022 tax year, forcing five-year amortization domestically and fifteen years for work done offshore. At the exact moment capital got expensive, a major software-company cost center became less friendly from a cash-tax and after-tax economics perspective.
There is also a demand-side story. COVID pulled years of enterprise software adoption into eighteen months, and a lot of what gets reported as growth now is ARR rotating through M&A rather than new logos landing. In parts of the market, revenue is moving around as much as it is expanding.
That is the real backdrop for the wave of layoffs. AI is the story being told on the earnings calls. The reality is accumulated management debt finally meeting a cost of capital that punishes it. Layers of process. Unclear ownership. Duplicated work. Headcount that grew faster than execution improved.
The pressure also lands hard on old farts like me. We are expensive. And to be honest, some of us do not want to change how we work or keep up with how the technology is evolving. That makes us easy targets when finance needs to hit a cost number. AI gives the story a forward-looking sheen, but the underlying move is simpler. Reduce expensive headcount, flatten layers, correct years of operational laziness.
AI is real. The layoff narrative around it usually is not. When you read a layoff announcement blaming AI, you are mostly reading a press release about cost of capital, tax policy, and a demand pull-forward that finally caught up with the org chart. Read the 10-Qs, not the blog posts.
“If you agree that AI will help attackers discover and exploit vulnerabilities 10-100x more easily, then your excess attack surface has also just become 10-100x more of a liability. The right defensive strategy is to prioritize reducing attack surface and trusted computing bases.”
The argument is right. It is also not new.
We have been working on this problem for fifty years
Operating system designers gave this set of principles a name in 1975. Saltzer and Schroeder published The Protection of Information in Computer Systems and laid out economy of mechanism, least privilege, separation of privilege, complete mediation, fail-safe defaults, and open design. The Orange Book formalized “trusted computing base” a few years later, with the central observation that the security of a system depends on what is inside the TCB, and that smaller TCBs are easier to make trustworthy than stronger ones. The microkernel debate that ran from Mach through L4 was an argument about how aggressively to apply these principles to commodity systems. seL4 went further and produced a formally verified microkernel in 2009, demonstrating that the principles could be pushed all the way to mathematical proof.
The same ideas show up everywhere once you look. Chrome’s site isolation is privilege separation applied to the browser. OpenBSD pledge and unveil are least privilege applied to userland. Linux namespaces, capabilities, and seccomp are mediation primitives. CHERI takes the same intuitions down into the instruction set. GlobalPlatform Security Domains are the smart-card-world version of compartmentalized trust, with separate keysets, separate trust roots, and isolation between issuers, verifiers, and applications on the same chip.
None of this is new vocabulary. Security domains. Privilege separation. Attack surface reduction. Trusted computing bases. We have known the names of these things for decades, and we have known what to do about them.
What AI changes is the math, not the principles. Excess privilege has always been a liability. The probability of it mattering on any given day was low enough, and the timescale on which it mattered was long enough, that organizations could carry oversized TCBs and broad blast radii in the backlog as “things we should clean up someday.” AI compresses the timescale and raises the probability. The slack that was tolerable on a five-year cleanup horizon is not tolerable on a six-month one. Dai Zovi’s 10-100x is a multiplier on the cost of carrying slack, not a discovery about whether slack should be carried.
The OS tradition assumed you owned the layer below the boundary
There is one place where the classical OS framework needs an extension before it covers the world we are actually deploying into.
The kernel could enforce process isolation because the kernel was below the processes. The hypervisor could enforce VM isolation because the hypervisor was below the VMs. The trust property was “I control the layer below the boundary, so the boundary is meaningful to me.” Every classical OS-level guarantee depends on that.
Cloud broke that assumption. AI workloads, which run on cloud GPUs and orchestration infrastructure that almost nobody owns, intensify the break. The layer below your workload is operated by someone else. Their hypervisor, their firmware, their physical facility, their scheduling. The classical principles still apply, but their enforcement mechanism is gone.
Reduction is necessary. Reduction is not sufficient. Once you have shrunk the attack surface and the TCB to something defensible, you still have to prove that the small thing you reduced to is the small thing actually running, and that what it just did is what you said it would do. Without that proof, the small thing is functionally indistinguishable from the large thing. An attacker who replaces your tiny attested signing service with a tiny lookalike has bought themselves all the same access at a lower cost.
The defensive posture in an AI-leverage world is not just smaller. It is smaller and provable.
Law #3 did not go away
There is also one law older than the OS-design principles that the cloud security pitch of the last decade has spent a lot of energy pretending to repeal.
Microsoft’s Ten Immutable Laws of Security were published by Scott Culp in 2000. Law #3 is the relevant one here. If a bad actor has unrestricted physical access to your computer, it’s not your computer anymore. The marketing for confidential computing has, in effect, been an extended argument that hardware-encrypted memory and remote attestation make Law #3 obsolete on cloud infrastructure. They do not, and the research record is clear that they will not.
Cloud TEEs share microarchitectural resources with the hypervisor and with co-tenants. That is what produces the side-channel catalog. Cloud providers have physical access to every server they operate. That is what produced TEE.Fail. Hardware roots of trust have a shelf life because they live on the same silicon as everything else, and that silicon is in the operator’s possession. None of these properties are bugs. They are what “running on hardware somebody else owns” means.
The criticism in those pieces is specific. It is about the gap between what cloud TEEs are sold as doing (defeating the operator) and what they actually do (making narrow verifiable claims to relying parties about specific operations). The criticism is not that the underlying assurance technology is useless. The technology delivers exactly what it was originally designed to deliver, in the contexts where the original threat model holds. The marketing has been run over those contexts.
Where the assurance property actually delivers
The assurance property does deliver, where the model fits. The model fits when the hardware is in the user’s possession, when the device is discrete and tamper-resistant, and when attestation is used to prove “the key in this request lives on this specific device and has never left it” rather than to prove “the operator of the rack cannot read your memory.” That is the threat model the technology was designed for, and it has been working in production for a long time.
A few examples of the pattern done honestly.
YubiKey PIV attestation. The YubiKey can produce an attestation certificate, signed by Yubico’s manufacturer key, asserting that a private key was generated on this YubiKey, has the slot and policy attributes you expect, and is non-exportable. Yubico documents the protocol clearly. The trust property is sharp because the device is sharp. Discrete silicon, tamper-resistant package, manufacturer chain you can pin against. Law #3 still applies, and it cuts the right way: the user has unrestricted physical access to the YubiKey, and the YubiKey is the user’s computer.
Apple Secure Enclave for SSH agents.Paprika and Secretive are SSH agents that store the private key in the Mac’s Secure Enclave Processor. The application processor never sees the key, and even root on the Mac cannot extract the key material. Root can still cause the key to be used through the legitimate signing API, modulo whatever consent prompts apply, but extraction itself is what the SEP boundary is built to defeat. The user owns the laptop, the key is on a physically separated processor on the same SoC, and the threat model (other applications on the same device, or malware that compromises the application processor) matches what the SEP was built for.
Smart cards and HSMs. GlobalPlatform Security Domains, the Yubico PIV applet, hardware-backed PKCS#11 tokens, FIPS 140-3 Level 3 modules. Discrete silicon, tamper-resistant packaging, attestation chains rooted in manufacturer keys. The model that worked in the late 1990s and that still works today, because the threat model has not drifted.
PeculiarVentures/attestation is the verification side of all of this. Parsing, validating, and reasoning about attestation evidence from these various sources. Attestation without a verifier is a claim. Attestation with a verifier is something the relying party can act on.
The common shape across all of these is that the user owns the hardware, the boundary is physical, and the attestation chain anchors in a manufacturer key whose threat model the user can actually evaluate. Law #3 is honored rather than denied.
Transparency is the other cross-machine extension
There is a second extension of the classical OS-design tradition that matters for the AI-leverage world, and that composes with attestation in important ways.
Saltzer and Schroeder’s open design principle says the security of a system should not depend on the secrecy of its mechanism. The cryptography community has applied this rule to algorithms for decades. The systems community has been slower to apply it to operations. What is the rack actually doing right now? and what has it done in the past? are operational questions, and historically the answer was “trust the operator’s audit logs.”
Transparency logs are the operational extension of open design. The idea is to publish what a system is doing to an append-only public log, with cryptographic proofs that the log cannot be retroactively modified, and to design the relying party to require evidence from the log before trusting any operation. Multiple independent witnesses cosign the log so that no single party can serve different views of reality to different relying parties.
The pattern is in production at scale. Certificate Transparency requires every WebPKI certificate to be logged publicly before browsers will trust it, which converts CA misissuance from “discovered by accident, sometimes” into “discovered by anyone watching the log.” Sigstore applies the same model to software signing, with every signature published to Rekor and consumers able to require log inclusion before accepting a binary. Google DeepMind’s Verifiable Data Audit was an early attempt to apply the same model to data access in healthcare. The infrastructure is consolidating at transparency.dev, and C2SP standardizes the interoperability primitives: tlog-tiles, the witness and cosignature protocols, signed-note, and static-ct-api.
Attestation tells a relying party “this code is running right now.” Transparency tells a relying party “this code has been published, reproduced, and witnessed by parties whose collusion would be visible.” The two compose. Apple’s Private Cloud Compute is the most prominent recent example. Every production build is published to a transparency log, user devices will only communicate with nodes whose attested measurement matches the log, and Apple released a virtual research environment so anyone can verify the build claims independently. Google’s Project Oak was an earlier expression of the same combination, building remote attestation against publicly-published binaries as the foundation of trust. The Merkle Tree Certificates draft, now a working group document in the IETF’s new PLANTS working group, extends the same logic to TLS at scale, replacing traditional X.509 issuance with batched, transparency-native cert formats designed for the shorter lifetimes the WebPKI is moving toward.
The relevant property for the AI conversation is that transparency reduces the number of parties you have to trust to one less than would otherwise be required. With attestation alone, you trust the manufacturer of the silicon. With transparency, you trust any of the witnesses to be honest, plus the manufacturer of the silicon. That asymmetry is what makes transparency the right tool for environments where the operator might be the adversary.
What this leaves for server-side TEEs
Bounded usefulness, designed honestly.
Server-side cloud TEEs do not defeat the operator. They produce narrow verifiable claims that a relying party can check against their own trust anchors. This signing service ran this image at this measurement. This certificate was produced by this enclave for this RA. This policy was applied. This key was attested as non-exportable by the HSM that signed. Each of those is a useful property. None of them is “the operator cannot see your data.” Building an architecture that pretends otherwise is how organizations end up with a single point of failure they did not know they had.
I have been building GoodKey CA as a worked example of the bounded-usefulness pattern. A certificate authority is a useful test case for this kind of architecture, because the trust property is sharp and the threat model is well understood. The shape of the answer is mostly classical OS design pulled across machine boundaries, with hardware-anchored trust at the endpoints and a deliberately bounded intermediary in the middle.
Each enclave is a security domain. RA, CA, and HSM are independent compartments. Each has its own measured image, its own keys, and its own attested boundary. Compromising one does not compromise the others. Privilege is separated by design rather than by policy.
The TCB inside each domain is small enough to characterize. Each enclave runs a single-purpose deterministic image. The measurement is one number. The image is reproducible from source. There is no general-purpose runtime to subvert and no orchestration sidecar to gain a foothold from. AWS Nitro Enclaves were the deliberate choice over SGX or TDX. The architecture uses VM-level isolation with dedicated CPU and memory rather than carving enclaves out of shared-cache, shared-core silicon, which reduces a large class of the microarchitectural side-channel exposure that the SGX and TDX families have to grapple with. Dedicated resources, minimal hypervisor, deterministic measurement.
Mediation is complete and inside the boundary. Every signing operation goes through the policy evaluator (Cedar) inside the enclave. Authorization is part of what is attested, not external to it. A compromised RA cannot lie about what policy was applied, because the policy evaluation was inside the measurement.
Trust is not transitive. When the RA tells the CA that a client attestation passed, the CA does not believe it. The CA re-runs the verification itself, against its own registered verifier, before signing anything. This is the cross-machine version of “the kernel does not trust userland’s claim that a syscall is authorized.” The CA does the check itself, every time.
Per-operation attestation, not per-boot attestation. The CA produces a fresh Nitro attestation for every certificate it signs, with user_data set to SHA-256(certDER || raKeyFingerprint). That binds this specific certificate to this specific enclave with this specific RA on the other end of the conversation. A boot-time attestation tells you the box looked right when it started. A per-operation attestation tells you the box looked right when it did the thing you actually care about.
Hardware-anchored trust at the endpoints. The signing keys themselves live in a hardware HSM with discrete-silicon attestation rooted in the Marvell manufacturer chain. The clients prove they hold hardware-protected keys via TPM or device attestation. The Nitro layer in the middle does not have to defeat AWS to be useful, because the actual key material is protected by a different boundary that AWS does not own, and the evidence on the wire is anchored in trust roots the relying party already trusts.
Operations published to a transparency log. The CA’s attested measurements, policy versions, and issuance records get logged to an append-only structure with multi-witness cosigning. The operator still chooses what to submit. What the operator does not get is the ability to retract entries after the fact, modify history, or serve a different version of the log to a different relying party without those parties detecting the divergence. A relying party’s confidence that the system has been running honestly over time stops being a function of trust in the operator’s audit logs and starts being a function of properties that hold against the operator. This is the same shape Certificate Transparency gives the WebPKI, applied to the CA’s own operational claims about itself.
Failure modes are bounded by design. Certificates are seven days. ACME Renewal Information lets the CA shorten renewal windows targeted at specific machines or specific profiles, and goodenroll polls for those signals on its own schedule. The fleet rotates without an emergency window and without anyone touching a machine. The exposure window becomes a configuration choice rather than a function of certificate lifetime, and revocation infrastructure stays out of the critical path of the threat model.
Post-quantum where it counts.ML-DSA-65 (FIPS 204) for certificate signing, ML-KEM-768 (FIPS 203) as the subject key for TLS key-exchange certificates. ARI is what makes the migration tractable on the deployed fleet, because you do not have to wait for natural expiry to do the work.
Nitro is a bounded-trust intermediary. AWS still owns the silicon it runs on. What the architecture buys you is that the property the relying party has to verify is narrow and concrete, and that the actual long-lived secrets are protected by hardware that AWS does not own. Against an AWS-internal threat with full physical access and unbounded effort, Law #3 still applies. Against the attacks the architecture is actually defending against (software compromise of the CA pipeline, a rogue admin pulling secrets through the management plane, a tampered build reaching production), the bounded property is exactly the property you need.
The substrate
An architecture like this only works if the underlying primitives are right. Three pieces of infrastructure I have been spending time on are upstream of GoodKey CA.
PeculiarVentures/scp is GlobalPlatform Security Domain key management in Go. The name is not a coincidence. Smart cards and HSMs have been doing security domains in hardware for two decades, with separate keysets, separate trust roots, and isolation between issuer, verifier, and application code on the same chip. The library implements SCP03 and SCP11 and a typed Security Domain management layer for key lifecycle, certificate provisioning, and trust validation, against verified profiles with byte-exact validation against independent reference implementations. This is the unglamorous work of “make sure the keys you are putting on hardware are actually being put on hardware in the way you think they are.” If the key on the device is not where you think it is, every downstream signature is asserting something false.
draft-ietf-acme-device-attest, which I am a co-author on, is the cross-machine extension on the client side. It standardizes how a device proves to an ACME server that the key in a certificate request lives in attested hardware on a specific device. The recent revisions resolved several interoperability gaps that had blocked broad implementation, including the Apple-specific attToBeSigned semantics around sha256(token) versus sha256(keyAuth), an explicit identifier-verification step, the badAttestationStatement error type, and a hardware-module identifier type. The point of the work is to make the client side of the trust chain as verifiable as the CA side. An attested signing service that issues credentials to anyone who asks is not solving the problem, it is moving it.
PeculiarVentures/attestation closes the loop. It is the verifier side that consumes attestation evidence from these various sources (TPMs, YubiKeys, Apple devices, Nitro Enclaves) and reduces it to claims a relying party can act on. Without a verifier, attestation is marketing. With a verifier, it is engineering.
These are not separate efforts. They are what makes hardware-anchored cross-machine trust mean anything in the wild. The transparency-log side of the same problem is being standardized in parallel through transparency.dev, C2SP, and the Merkle Tree Certificates draft, which together extend the same model to issuance auditability at WebPKI scale.
What this asks builders to do
The Dai Zovi prescription is operating-systems hygiene applied to the whole stack. The verifiability corollary is the same hygiene extended across machines you do not own. Both are old. AI is what is making them mandatory.
Pick small. Compartmentalize. Strip privilege to what each component genuinely needs. Make each component’s TCB small enough that one person can characterize it in a sitting. Single-purpose services, deterministic builds, dedicated resources rather than shared microarchitectural state, single-image enclaves rather than orchestrated runtimes.
Make it provable across machines. Per-operation attestation rather than per-boot. Independent re-verification at every hop, not transitive trust. Authorization decisions inside the attested boundary. Evidence bundles the relying party can run a verifier against, with their own trust anchors. Short lifetimes with active rotation rather than long-lived credentials backstopped by revocation. And publish the operations themselves to a transparency log with independent witnesses, so the proofs survive disagreement about who saw what when, and so a single dishonest operator cannot serve different versions of reality to different relying parties.
Anchor trust in hardware whose threat model you can actually evaluate. Where you can put the long-lived secret on hardware the user owns, do that. YubiKey, Apple Secure Enclave, TPM in the laptop on the engineer’s desk, smart card in the operator’s pocket. Where you cannot, use a cloud TEE as a bounded-trust intermediary that produces narrow verifiable claims, and design the architecture so the long-lived material lives in a different boundary that the cloud operator does not own.
And know what your assurance is buying you. Cloud TEEs are not how you defeat the operator. They are how you make narrow operations verifiable to relying parties while accepting that absolute properties against the operator are not on offer. The places where attestation delivers what it advertises are the places where the user owns the silicon. Law #3 has not been repealed, and AI has only raised the cost of pretending otherwise.
Smaller is the easy half. Provable is most of the engineering. On hardware you own is where the property actually holds.