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AI NewsWhy Big Tech’s AI-Driven Layoffs Have Failed to Deliver Value
7:03 PM IST · May 26, 2026
AI-driven layoffs may free up budget, but cutting jobs doesn't create returns. The companies winning the AI race aren't replacing people, they're investing in them.
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Backed by Amazon and Google, the AI startup is valued at $965 billion and has emerged as one of OpenAI’s biggest rivals.
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Gaurav Pathak, SVP at Salesforce, discusses the shift from transactional to agentic AI driven by data context and trust.
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The expanded partnership will support a range of enterprise use cases using Claude tools within Snowflake’s ecosystem.
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Google parent company Alphabet said Monday that it plans to raise $80 billion to help pay for the massive AI infrastructure buildout it has planned. Alphabet will sell off that amount in stock and will then use the funds to pay for “general corporate purposes, including capital expenditures to scale AI infrastructure and global compute,” the company saidin a statement. Part of the plan involves selling $10 billion in stock to Berkshire Hathaway, the massive global holding company formerly led by Warren Buffett. “The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company’s available supply,” Alphabet said in its statement. “By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.” The company added that the stock plan represented a way to “fund its investments in a balanced way while retaining a healthy balance sheet.” Like other tech giants, Google has announced plans for a massive investment in compute this year, the likes of which will be used to support a flurry ofnew AI services. At Google I/O last month, CEO Sundar Pichaisaid thatthe company expects to spend between $180 billion and $190 billion on capex before the year is out. Google and other tech giants areexpected to spendas much as $700 billion this year on AI capex.
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