The other side of the AI boom
29 stories · 9–16
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 shiftCompany stated
Tesla
Tesla plans to wind down Cybertruck production at its Texas Gigafactory around the middle of next year. Elon Musk said the change will make room for increased Cybercab production, as Tesla ramps up robotaxi output.
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.
LayoffReported link
Telegraph, Axel Springer
The Daily Telegraph's clear-out of columnists is described as driven less by politics than by a shift toward AI. The piece argues that journalism will pay the price, and notes that Allison Pearson's exit is also being negotiated.
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.