Google Advances AI Security While Amazon Salesforce Microsoft Cut Jobs

As the holiday-shortened week of December 22-26, 2025, begins, investors are closely examining whether massive AI infrastructure spending will yield durable profits. Data center dealmaking hit a record $61 billion through November 2025, yet concerns persist about asset scarcity and investment payback. Oracle's "Stargate" project, for instance, has become a notable warning sign regarding AI capital expenditure scrutiny, contributing to a decline in Oracle's stock amid "AI bubble" fears. Amid this market watch, Google Cloud and Palo Alto Networks announced a significant partnership, committing nearly $10 billion over several years to enhance cloud security, a critical area as AI expands cyber threats. Meanwhile, Google DeepMind's Logan Kilpatrick explained that even small improvements in AI pre-training lead to substantial gains in final models, like their Gemini 3 Pro, underscoring the continuous heavy investment in AI development. The rapid adoption of AI also carries significant implications for the workforce. In 2025, AI was responsible for almost 55,000 U.S. job cuts, with major companies such as Amazon, Salesforce, and Microsoft citing AI as a reason for thousands of layoffs. This contributed to overall U.S. job cuts reaching 1.17 million. Conversely, the demand for AI expertise is growing, exemplified by Anand Sharma, who earns 18,000 hourly training AI models as a side job. AI is finding diverse applications, from public safety to urban infrastructure. The parents of Jennifer Kesse, missing for nearly 20 years, hope AI can enhance grainy CCTV footage to identify a suspect. In Traverse City, Michigan, Dragonfly AI software now inspects sanitary sewer pipes, efficiently identifying defects. However, operational challenges exist; SaaStr, using over 20 AI agents, experienced incidents like an agent mistakenly giving away free tickets and struggling with time-sensitive information. On a broader scale, Senator Bernie Sanders warns that AI poses serious threats to human freedom, concentrating power among a few entities. He notes that Google, Meta, Amazon, Microsoft, and OpenAI control most AI research and infrastructure. Experts predict AI will be ubiquitous within two decades, potentially dividing humanity into pro-AI, anti-AI, and indifferent camps, with consequences depending heavily on the developers' motives.

Key Takeaways

• Data center dealmaking reached a record $61 billion through November 2025, but investors are scrutinizing AI investment payback, with Oracle's "Stargate" project serving as a cautionary example.
• Google Cloud and Palo Alto Networks formed a nearly $10 billion partnership over several years, emphasizing cloud security in the AI era.
• AI was responsible for almost 55,000 U.S. job cuts in 2025, with Amazon, Salesforce, and Microsoft among companies citing AI for layoffs, contributing to 1.17 million total U.S. job cuts.
• Small improvements in AI pre-training, as explained by Google DeepMind, lead to significantly larger gains in final models like Gemini 3 Pro.
• SaaStr uses over 20 AI agents to process 275,000 startup valuations and 1,300 pitch decks monthly, but faced incidents like giving away free tickets, highlighting control and temporal understanding challenges.
• Senator Bernie Sanders warns that five major companies—Google, Meta, Amazon, Microsoft, and OpenAI—control most AI research and infrastructure, posing threats to human freedom and power distribution.
• AI is being applied to cold cases, with Jennifer Kesse's parents hoping AI can enhance grainy CCTV footage to identify a suspect's ear.
• Traverse City, Michigan, uses AI-driven Dragonfly software to efficiently inspect sanitary sewer pipes, identifying defects and prioritizing repairs.
• Anand Sharma earns 18,000 hourly training AI models in the UK, showcasing the growing demand and high earning potential for skilled AI professionals.
• Experts predict AI will be ubiquitous within 20 years, potentially dividing humanity into pro-AI, anti-AI, and indifferent groups, with outcomes dependent on developer motives.

Data Center Stocks Face AI Funding and Holiday Trading Scrutiny

Data center stocks are under scrutiny for AI funding and power grid limits as the week of December 22, 2025, begins. Holiday-shortened trading, with an early close on December 24 and markets closed on December 25, could amplify stock swings. Global data center dealmaking reached a record $61 billion through November 2025, showing strong interest but also concerns about asset scarcity. Investors are questioning the payback of massive AI investments, especially after issues with an Oracle-linked project. The traditional "Santa Claus rally" period starts December 24 and runs through January 5.

Software Stocks Watch AI Spending and Cloud Security Deals

Software and platform stocks face a holiday-shortened week from December 22-26, 2025, balancing market swings and the evolving AI buildout. Investors are closely watching when large AI infrastructure spending will lead to measurable profits. A major partnership between Google Cloud and Palo Alto Networks was announced, involving a commitment approaching $10 billion over several years. This deal highlights the growing importance of cloud security, especially as AI expands cyber threats. The market is also considering potential Fed rate cuts in 2026 and the traditional "Santa Claus rally" hopes.

Tech Stocks Face AI Spending Questions and Holiday Trading

Technology stocks are entering a Christmas-shortened week from December 22-26, 2025, with investors demanding proof that the AI boom's massive infrastructure bills will translate into durable profits. Holiday-thin liquidity and a pile-up of delayed U.S. economic data, including GDP, could exaggerate intraday moves. Ongoing scrutiny of AI capital expenditures, data centers, and funding, especially after recent headlines, remains a key focus. The market is also watching shifting expectations for the Federal Reserve's rate path in 2026. Oracle's "Stargate" project has become a warning sign for AI capital expenditure scrutiny.

AI May Help Solve Jennifer Kesse's 20 Year Disappearance

Jennifer Kesse vanished nearly 20 years ago, and her parents, Drew and Joyce Kesse, hope artificial intelligence will help solve the case. Jennifer was last seen around Christmas 2005, and her car, a black 2004 Chevrolet Malibu, was found abandoned in Orlando, Florida. Grainy CCTV footage showed a suspect near her car, but their face was hidden. Drew Kesse believes AI can enhance an image of the suspect's ear, which could be as useful as fingerprints or DNA. The Florida Department of Law Enforcement is now handling the case and testing new DNA evidence found in the car.

AI Caused Over 50,000 US Job Cuts in 2025

Artificial intelligence was responsible for almost 55,000 job cuts in the U.S. during 2025, according to consulting firm Challenger, Gray & Christmas. Major companies like Amazon, Salesforce, Microsoft, and IBM cited AI as a reason for thousands of these layoffs. Overall, U.S. job cuts reached 1.17 million in 2025, marking the highest level since 2020. While some experts suggest companies overhired during the pandemic, AI is seen as an attractive solution for cost-cutting. An MIT study in November showed AI could automate 23% of worker tasks.

Senator Sanders Warns AI Threatens Freedom and Power

US Senator Bernie Sanders warns that artificial intelligence poses serious threats to human freedom and could give too much control to a few powerful individuals. He believes AI and robotics will fundamentally reshape the world and could even displace human agency in governing the planet. Sanders highlighted that five major companies, including Google, Meta, Amazon, Microsoft, and OpenAI, control most AI research and infrastructure. Wealthy individuals like Elon Musk and Jeff Bezos are investing heavily in AI, shaping humanity's future with little meaningful oversight. While Donald Trump wants to reduce AI regulations, Sanders calls for the U.S. to lead in regulating this technology.

SaaStr AI Agents Face Challenges Despite Big Gains

SaaStr has been using over 20 AI agents in production since May, allowing 2.5 humans to do the same work as more than 12. These AI agents efficiently handle tasks like processing 275,000 startup valuations and analyzing over 1,300 pitch decks monthly. However, SaaStr experienced a difficult week with four major AI agent incidents. One agent mistakenly gave away free tickets to SaaStr Annual 2026, showing a need for better controls on AI creativity. Another agent promoted an event that had already happened, highlighting AI's struggle with understanding time. A third incident involved a vendor's "hot fix" that broke SaaStr's AI workflow without warning.

AI Will Divide Humanity Into Three Camps

Artificial intelligence is becoming a new source of conflict that will separate humanity into different camps. These groups include those who are in favor of AI, those who are against it, and those who are indifferent. Experts predict AI will be ubiquitous within the next 20 years, making it nearly impossible for anyone to opt out of its use in normal society. The consequences of AI will depend entirely on the motives of the people developing it. Adam Showalter from Lancaster Township shared these thoughts in a letter.

Google DeepMind Explains Small AI Training Gains Lead to Big Model Boosts

Logan Kilpatrick, a Group Product Manager at Google DeepMind, explained why even small improvements in AI pre-training lead to much bigger gains in the final models. He noted that Google DeepMind's Gemini 3 Pro model still shows benefits from pre-training. Kilpatrick used a metaphor, saying that a strong pre-trained model, even with small percentage increases in capability, gets greatly amplified by later steps. These later steps include techniques like reinforcement learning from human feedback and fine-tuning. This means that major AI labs continue to invest heavily in training because even small initial gains become very significant later on.

Oracle Stock Declines Amid AI Bubble Concerns

Oracle's stock peaked in September and has since declined, becoming a key example of AI bubble fears. Investors are questioning Oracle's valuation and its ability to grow, despite its cloud infrastructure and database software being useful for AI companies. The company has struggled to translate its AI appeal into significant revenue growth. Analysts have mixed opinions on Oracle's future, with some seeing potential for a rebound and others worried about intense competition and high expectations. Recent earnings reports have shown mixed results, adding to the debate about its AI-driven growth story.

Indian Man Earns ₹18,000 Hourly Training AI Models

Anand Sharma, an Indian-origin man in the UK, earns ₹18,000 per hour training artificial intelligence models as a side job. Sharma is also an author, lecturer, and PhD student, balancing these roles with his AI work. He states that his main motivation is a genuine interest in AI technology, not just the high earnings. This story highlights the increasing demand for skilled people in the fast-growing AI industry. His experience shows how individuals can use their expertise to benefit from new market trends while pursuing other career paths and academic endeavors.

Traverse City Uses AI to Inspect Sewer Pipes

Traverse City, Michigan, has started using an AI-driven system to evaluate its sanitary sewer pipes. The city uses CCTV cameras inside the pipes to collect data on their condition. An AI program called Dragonfly software then analyzes this data to find even small defects. This process helps the city quickly identify and prioritize which pipes need repair or replacement. Art Krueger, director of utilities, expects the AI software to be more efficient and provide more consistent results than previous methods.

Sources

• Data Center Stocks Week Ahead: AI Capex Scrutiny, Power Constraints, and Holiday Trading Put Nvidia, Vertiv, and Data Center REITs in Focus
• Software and Platform Stocks Week Ahead: AI Spending Scrutiny, Cloud Security Mega-Deals, and Holiday-Shortened Trading (Dec. 22–26, 2025)
• Technology Stocks Week Ahead: AI Spending Scrutiny, Fed Rate Path, and Holiday-Thin Trading to Drive Tech Stocks (Dec. 22–26, 2025)
• 'Our daughter vanished 20 years ago - but AI and an ear caught on camera may finally solve the case'
• AI was behind over 50,000 layoffs in 2025 — here are the top firms to cite it for job cuts
• How Artificial Intelligence threatens human freedom and consolidates control in the hands of its controllers
• A Great Year With Our 20+ AI Agents — But a Rough Week
• Artificial intelligence is the new conflict that will separate us into different camps [letter]
• Google’s Logan Kilpatrick Explains Why Even Small Pre-Training Gains Lead To Big Improvements In Models
• How Oracle became a ‘poster child’ for AI bubble fears
• Indian-origin man earns ₹18,000 per hour by training AI models, says money was never main motivation
• Traverse City launches AI-driven sewer evaluation