I don't disagree with your sentiment, but as someone who manages infrastructure which is literally on the opposite side of the planet (from me) RTT is long enough to be objectively horrible for anything interactive like typing over SSH. At least 250ms capital to capital for Europe to Oceania + last mile latency makes 300ms a more realistic minimum + actual processing time + client side rendering and it really starts to feel like a half second from the full human perspective... Under ideal conditions.
It's not just AI. Video streaming or game streaming both depend on close proximity to the end user, alone because the data volume would completely overwhelm backhaul links... that's why Youtube, Netflix and a lot of CDNs all have colo facilities close to major population centers and their regionally dominant ISPs.
It can be significantly cheaper to pay colo fees at an ISP' s data center than to pay interconnection fees for bulk transfers.
That's a straw man for this discussion. Yes, there will be a need to place some DCs close to users, but most of them could be located closer to energy production, attached to a backbone network, and the vast majority of customers would not suffer any degradation of service from it.
Playing from eu on us servers is not playable
>A ping goes around the whole world before your pressed key is visible on the screen.
I’m gonna guess availability of employees may matter more.