The layoff wave tells two stories, not one.
Tech giants like Amazon, Meta, and Microsoft are cutting to fund GPU purchases. Their revenues are growing. Their stock prices are climbing. They're firing people to free up cash for compute. This isn't cost-cutting during a downturn. It's a forced reallocation from payroll to datacenter capacity. The math is brutal: every percentage point of headcount reduction funds another batch of H100s.
Meanwhile, UPS, Nestle, Ford, and Target are cutting for the opposite reason. They've already deployed AI tools that work. Customer service automation, supply chain optimization, generative design systems. The productivity gains are real and compounding. These companies don't need to buy massive GPU clusters. They're renting inference from hyperscalers and cutting headcount because the math finally works.
Both sides are feeding the same beast. Tech companies are buying the shovels. Everyone else is buying the gold those shovels dig up. Semiconductor companies sit in the middle, collecting rent from the entire value chain. TSMC, NVIDIA, and ASML are printing money while employment craters on both ends.
The timing matters. We're at 10% enterprise AI adoption, heading toward 50%. History says this phase moves fastest and generates the most wealth. But that wealth is concentrating in compute, not labor. The gap between market cap growth and wage growth has never been wider. This isn't a recession. It's a rebalancing. And most workers are on the wrong side of it.
🎉🎉10 YEARS OF APPABOUT🎉🎉
Great things take time and time costs money.
Our humble space has allowed us to explore our problem statement less the pressure of costly financing or limited leave of stay.
We deeply appreciate our immediate community for making this possible.
🎉🎉10 YEARS OF APPABOUT🎉🎉
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#AppAboutAt10
So now that Nvidia has far outstripped the market cap of AMD and Intel, I thought this would be a fun story to tell. I spent 6+yrs @ AMD engg in mid to late 2000s helping design the CPU/APU/GPUs that we see today. Back then it was unimaginable for AMD to beat Intel in market-cap (we did in 2020!) and for Nvidia to beat both! In fact, AMD almost bought Nvidia but Jensen wasn’t ready to sell unless he replace Hector Ruiz of AMD as the CEO of the joint company. The world would have looked very different had that happened. Here’s the inside scoop of how & why AMD saw the GPU oppty, lost it, and then won it back in the backdrop of Nvidia’s far more insane trajectory, & lessons I still carry from those heady days:
9 years ago, Peter Thiel did a Reddit AMA.
Yesterday, I was going through it and found his philosophy of building companies.
10 startup-building nuggets from the Don of Paypal Mafia👇
Current LLMs are trained on text data that would take 20,000 years for a human to read.
And still, they haven't learned that if A is the same as B, then B is the same as A.
Humans get a lot smarter than that with comparatively little training data.
Even corvids, parrots, dogs, and octopuses get smarter than that very, very quickly, with only 2 billion neurons and a few trillion "parameters."