The other side of the AI boom
15 stories · 1–8
Demand shiftFunding shift
Nvidia, Anthropic
The Guardian reports that Nvidia saw its value crash by more than $400bn during a sell-off that followed the midterm results. Anthropic, developer of the Claude chatbot, is reportedly hoping to float within the next fortnight for $1.5tn, but may not now get even a trillion dollars.
Demand shiftFunding shift
Nasdaq
Global stock markets fell sharply after a Wall Street rout in tech shares, with the Nasdaq Composite more than 10% below its peak. Investors grew nervous about returns on AI spending just as data centre build-out looked set to slow.
Demand shiftFunding shift
Palo Alto Networks, Clutch, Lightspeed
Palo Alto Networks is reported to be in talks to buy Clutch, an AI agent security startup, for $500 million. Clutch was backed by Lightspeed and SignalFire and was last valued at $85 million, according to a source.
Demand shiftCompany stated
OpenAI
After midterm voters opposed data center expansion, OpenAI announced new commitments to communities where it is building data centers. The company said it won't use non-disclosure agreements with public officials, a practice that had drawn scrutiny.
LayoffReported link
Microsoft
Microsoft has offered buyouts to about 60,000 employees, according to The New York Times. The offer comes as the company pours billions into artificial intelligence, and the workforce was already on edge.
Demand shiftAdaptation
Airbnb
Airbnb said it will launch an AI agent in the first half of 2027 to help travelers plan trips, compare options, and manage bookings. The company described the agent as a step beyond today's simple, routine AI tasks.
LayoffFunding shift
NICE
NICE said it will cut about 5% of its global workforce, around 500 people, as profits and margins fall. Ctech reports the company is making the cuts to run more efficiently and to keep spending on AI.
LayoffReported link
Canva
Canva chief executive Melanie Perkins told staff that 1,271 people, 22% of the company, will be laid off, asked to relocate, or moved into different roles. The BBC reports the company's value has fallen over concerns about AI's effect on the business and the cost of building the technology into its products.