I thought that's one of the main reasons for cuts: show investors that you're cutting costs, insuring more profit in the future. So what went wrong? Are layoffs suddenly no longer the magic move that fixes everything for those on top?
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Maybe Wall Street is just as tired of it as we are.
Not 100 % at all. Adobe stock crashed after the last layoff was announced
Larry is freeing up cash to for data centers.
He may lose money on each data center, but he will make it up in volume.
It’s the Larry effect- the market is punishing Oracle because of Larry
And it’s well deserved
@a2 Anthropic is doing IPO this financial year. Training new models makes them unprofitable. They are just boosting their numbers to set a stock price.
100%
They make themselves out to save humanity when in actuality, they are slowing down because they aren't making a viable revenue stream.
The fundamental strategy of pouring money into AI in the hope that a viable financial model will eventually emerge is flawed, and the market recognizes this. That’s not to say AI isn’t here to stay; it absolutely is. That's not even to say that Oracle and OpenAI won't succeed; they may. The issue is that investors are becoming increasingly hesitant to continue financing the AI buildout without a clear understanding of when, or even whether, they will see meaningful returns. Layoffs don't fix that.
Antropic is proposing to slow-down ai build, I saw some online articles they think the revenue Ai brings is lower than the investments.
They try to portrait it as Ai jas the 10% chance to ki-l humanity by 2030.