Hacker reverse engineers his Samsung TV and finds on-device AI listening for your dog and baby, watching what you watch, and borrowing your soundbar's mic if the TV doesn't have one. Then OpenAI banned him for reverse-engineering it.
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Who knows? Without the ability to audit that the software is doing by yourself, you just have to trust whatever it is that they say the switch does. Maybe it disables some minor functionality while still doing the majority of the privacy invasion stuff. Maybe it does absolutely nothing whatsoever.
This is the whole reason behind the Free Software movement and everything Richard Stallman has been preaching for the past 40 years. If you don't have the ability to control the software on the devices you own, they will be used against you.