Megaupload founder says he'll bring back the site using AI

Kim Dotcom says he’s bringing Megaupload back with AI. And crypto. And a custom operating system. Because that’s definitely what we need right now.

The embattled tech entrepreneur announced on X that he’ll use “AI coding” to rebuild the file-sharing service that made him infamous over a decade ago. This time around, he’s promising fully encrypted uploads hosted on IPFS — the InterPlanetary File System, for those keeping track of blockchain buzzwords — combined with something called FileShop that lets users sell their creations via cryptocurrency.

Oh, and he’s throwing in a “backdoor-free OS that can run all software on top.” Sure.

The original Megaupload was shut down by the FBI in 2012 following a massive raid on Dotcom’s New Zealand mansion. He’s been fighting extradition to the United States ever since, facing charges of criminal copyright infringement, racketeering, and money laundering. The US Department of Justice claims Megaupload cost copyright holders over $500 million in damages.

That fight isn’t going well. In September 2025, a New Zealand High Court rejected Dotcom’s latest attempt to block his deportation, dismissing his arguments that the extradition decision was politically motivated and that he’d face “grossly disproportionate treatment” in the US. CBS News has a detailed report on the situation that you can check out here.

The responses to his Megaupload 2.0 announcement are exactly what you’d expect. One user helpfully suggested he “wait for a million AI robots as private security before launching though.” Another offered to help with “vibecoding,” which I’m starting to believe is actually helpful, considering how a few people managed to make Epsiten’s publicly released data easy to access by emulating existing apps and websites.

That said, Tom Zarebczan recommended Arweave for “permanent storage options,” because apparently, we’re just throwing every Web3 technology into the mix now.

The skeptics showed up too. “Just a reminder to add ‘don’t make mistakes’ to your prompt,” remarked one user, pointing out that AI-generated code isn’t exactly known for its security rigor. Another noted that “backdoor-free” is meaningless when someone asks, “What makes you three letter agencies blackmail resistant?”

That’s the real question here. Dotcom’s original empire crumbled because centralized file storage is vulnerable to law enforcement. Decentralizing with IPFS and adding crypto payments doesn’t magically solve that problem. It just makes it harder to moderate and easier to facilitate illegal activity.

I’m not holding my breath. But I’m definitely watching.

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