Google, Meta AI Investments Soar, Job Cuts Hit 27K

The tech world is currently seeing a massive surge in AI investment, with major players like Google, Meta, Amazon, Microsoft, Apple, and Nvidia leading the charge. These companies are projected to spend over $350 billion on AI data centers this year, potentially boosting the U.S. economy by 0.7% in 2025. Morgan Stanley predicts a 56% increase in AI and cloud computing spending by major tech companies in 2025, signaling a serious commitment to AI. Meta is even offering salaries as high as $250 million over four years for top AI researchers, surpassing even NBA star Steph Curry's contract. Elon Musk's xAI has launched Grok Imagine, an image and video generator with a "spicy mode" for NSFW content, available to SuperGrok and Premium+ X subscribers. Character.AI is adding a social feed to its app, allowing users to share AI characters and content. However, this AI boom also brings concerns. A recent report indicates that AI is already causing job losses, with over 27,000 cuts linked to AI since 2023, particularly affecting entry-level positions. Bill Gates warns that AI threatens these entry-level jobs, with postings down 35% since January 2023. Companies like Centene are using AI to improve customer service in healthcare, while Experian has launched an AI tool to help financial institutions manage credit and risk. The financial services industry requires more AI skills training to adapt to these changes. Carnegie Mellon University is launching an institute to use AI for math discoveries, highlighting AI's potential across various sectors. Silicon Valley has fully embraced the "hard tech" AI era, focusing on neural networks and large language models.

Key Takeaways

• Google, Meta, Amazon, Microsoft, and Nvidia plan to spend over $350 billion on AI data centers this year.
• Morgan Stanley forecasts a 56% increase in AI and cloud computing spending by major tech companies in 2025.
• Meta offered one AI researcher $250 million over four years.
• Elon Musk's xAI launched Grok Imagine, an AI image and video generator with a "spicy mode".
• Character.AI added a social feed to its app for sharing AI characters and content.
• Over 27,000 job cuts have been linked to AI since 2023, impacting entry-level positions.
• Bill Gates warns that AI threatens entry-level jobs, with postings down 35% since January 2023.
• Centene is using AI to improve customer service in healthcare.
• Experian launched an AI tool for financial institutions to manage credit and risk.
• Carnegie Mellon University is launching an institute to use AI for math discoveries.

Big Tech's AI spending spree reshapes the slowing US economy

Big Tech companies like Google, Meta, Amazon, and Microsoft plan to spend over $350 billion on AI data centers this year. This massive investment could boost the U.S. economy by 0.7 percent in 2025. Some experts worry the economy is becoming too reliant on Big Tech's AI spending. Meta CEO Mark Zuckerberg is hiring for a new team to create superintelligence. Nvidia's stock has soared, making employees wealthy. The AI boom could impact investments if the economy weakens.

AI spending boosts stocks despite weak jobs report

The stock market is rising, and analysts say AI spending is a big reason why. Morgan Stanley predicts major tech companies like Meta, Microsoft, Amazon, and Apple will increase spending on AI and cloud computing by 56% in 2025. This shows these companies are serious about AI. Apple plans to increase its AI investments. Industrial stocks like Eaton and GE Vernova also benefit from data center construction.

AI investment is propping up the US economy now

AI is acting as a super-stimulant for the American economy. Big companies like Nvidia, Microsoft, Apple, Alphabet/Google, Amazon, and Meta are investing heavily in AI. They are buying land, building data centers, and acquiring chips. This investment is helping to offset a weakening economy. However, there are concerns about whether these investments will benefit all workers and whether the AI boom could eventually bust.

AI is already replacing jobs, thousands laid off

A new report shows that AI is already causing job losses in the U.S. More than 10,000 jobs were cut in July due to AI. Since 2023, over 27,000 job cuts are linked to AI. Younger workers in entry-level jobs are most affected. Amazon's CEO said AI will reduce the company's workforce. This shows AI's impact on the job market is happening now.

Bill Gates warns AI threatens entry-level jobs

Bill Gates says AI is a useful tool, but it may not save Gen Z from job losses. Entry-level job postings have decreased by 35% since January 2023. AI is automating tasks previously done by entry-level workers. Some companies are now hiring junior-level employees who can oversee AI work. Many Gen Z workers are seeking jobs in trades and healthcare for more security.

AI researcher salaries beat NBA stars and A-bomb scientists

Top AI researchers are earning huge salaries. One AI researcher was offered $250 million over four years to work at Meta. This is more than NBA star Steph Curry's contract. Tech companies like Meta and Google are investing heavily in AI. Apple is also increasing its AI investments to improve Siri. CFOs are aware of agentic AI, but few are ready to use it safely.

Centene uses AI to improve healthcare customer service

Centene, a large healthcare company, is using AI to improve customer service and patient outreach. They use machine learning and NLP to automate customer communication. This helps them respond faster and improve customer satisfaction. Centene also uses predictive analytics to identify patients at risk. They partnered with Confluent to update their data system. Their AI chatbot, Colloquium, helps answer customer questions.

Character AI adds social feed to its app

Character.AI, an app that lets users create and chat with AI characters, is adding a social feed. The feed lets users share images, videos, and chatbots with others. Users can also share chat snippets or have AI characters debate on live streams. The company's video tool lets users create video clips with text and images. This new feature aims to blend content creation and consumption.

xAI's Grok Imagine lets you create NSFW content

Elon Musk's AI company, xAI, has launched Grok Imagine, an image and video generator. It's available to SuperGrok and Premium+ X subscribers on iOS. Grok Imagine allows users to create NSFW content with a "spicy mode." There are limits to how explicit the content can be. The generator also lets you create content of celebrities, but with restrictions. Grok Imagine aims to compete with other AI image and video generators.

Experian launches AI tool for credit and risk management

Experian has released a new AI tool to help financial institutions manage credit and risk models. The tool, Experian Assistant for Model Risk Management, automates documentation and monitoring. It can reduce internal approval times by up to 70%. It integrates with Experian's Ascend platform. The tool helps companies meet regulations in the U.S. and U.K. It also helps prevent fraud and cybercrime.

AI skills training needed for financial services revolution

AI is changing the financial services industry. However, there is a lack of AI skills and training. Companies need to invest in retraining workers to use AI effectively. AI skills are becoming more valuable, with workers earning higher wages. Investors can benefit by supporting companies that offer AI training and integrate AI into workflows. AI literacy is essential for the future of financial services.

Silicon Valley enters the 'hard tech' AI era

Silicon Valley has shifted from the Web 2.0 era to an artificial intelligence age. The tech industry is now focused on "hard tech" like neural networks and large language models. Knowledge of AI hardware like graphical processing units is now essential. The culture has become more serious with fewer perks. AI is transforming various industries and making older technologies seem outdated.

CMU institute to use AI for math discoveries

Carnegie Mellon University (CMU) is launching a new institute to help mathematicians use AI. The Institute for Computer-Aided Reasoning in Mathematics (ICARM) will receive funding from the National Science Foundation. It will help researchers use AI to solve problems in science, security, and the economy. The institute will offer workshops and conferences. It aims to improve how mathematics is taught.

Sources

• Big Tech’s hefty AI spending is reshaping the slowing economy
• What a September rate cut would mean for stocks, plus a bullish call on AI spending
• Behind the Curtain: AI is shouldering the American economy
• AI isn’t coming for jobs—it’s already replacing them by the thousands, report shows
• AI is coming for entry-level jobs. Bill Gates says Gen Z may not be safe no matter how well they learn to use it
• AI Salaries Surpass Those of NBA Stars and A-Bomb Maker
• Artificial Intelligence at Centene - Emerj Artificial Intelligence Research
• Character.AI is adding a social feed to its app
• Grok Imagine, xAI’s new AI image and video generator, lets you make NSFW content
• Experian Unveils New AI Tool for Managing Credit and Risk Models
• Unlocking the AI-Driven Financial Services Revolution: Investing in Undervalued Workforce Training and AI Literacy
• A.I. Has Ushered in Silicon Valley’s ‘Hard Tech’ Era
• New NSF Institute at CMU Will Help Mathematicians Harness AI and Advance Discoveries