Good morning. Have you heard about the Samsung semiconductor exodus?
Engineers are leaving the South Korean icon in droves, according to Rest of World, citing heavy workloads, long hours, and lower bonuses. That vibe is hardly new at hard-driving Samsung, but it is a sign—perhaps—of what the global AI chips race looks like on the ground.
Do you think AI can help? I dunno, asking for a friend. Today’s tech news below. —Andrew Nusca
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Andy Jassy prepares Amazon for an era of AI cost-cutting
Amazon CEO Andy Jassy told hundreds of thousands of employees on Tuesday that generative AI is coming for their jobs and that their best bet is to embrace the technology.
“Those who embrace this change, become conversant in AI, help us build and improve our AI capabilities internally and deliver for customers, will be well-positioned to have high impact and help us reinvent the company,” he wrote in a company-wide email.
Jassy added that there’s not room on the bus for everybody: “We expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
The subtext of the missive raises several questions.
Are some parts of Amazon highly resistant to AI and in need of a public nudge? (Likely.)
Is the memo a wink-wink to Wall Street that the company’s heavy AI investments will eventually pay off? (I suppose.)
Is the note meant to provide some cover for future mass layoffs that may or may not have to do with AI? (Possible, but less likely.)
Whatever the case, Jassy seems like the right leader for the current job.
Since taking the CEO reins from Jeff Bezos in 2021, the former Amazon Web Services leader has also become Amazon’s chief cost-cutter.
Jassy has overseen the largest corporate layoffs in company history and rejiggered the U.S. warehouse network and inventory systems to reduce the cost of getting products to customers.
Do more with less, or at least more with the same? Sounds like a strategy suited to the times. —Jason Del Rey
Memphis residents say Musk’s supercomputer harms their health
The NAACP said Tuesday that it plans to sue xAI over concerns about pollution generated by its supercomputer located near predominantly Black communities in Memphis, Tenn.
The xAI data center—officially xAI’s Memphis Supercluster and sometimes its “Colossus” supercomputer—is used to train the company’s Grok AI and support other Musk interests like the social media service X.
It’s housed in a former Electrolux factory in southwest Memphis, about a 10-mile drive to the city’s downtown core. The appliance company left the building in 2020.
xAI began operating the facility last year with help from gas turbines that lack a permit, according to the Associated Press. xAI said the units were “temporary” and compliant with the law.
The NAACP and Southern Environmental Law Center feel differently.
The pair filed a 60-day notice of an intent to sue under the Clean Air Act, alleging that the gas turbines violate the law and create smog and carbon dioxide pollution that aggravates a population already four times as likely as the average American to be diagnosed with cancer.
The stakes are high. City officials and the local chamber of commerce have been supportive of the project, which could grow as xAI actively explores a second site nearby for its operations. —AN
Trump will ‘probably’ extend the TikTok deadline (again)
If you were wondering lately what happened to the TikTok ban that never was…well, we’ve got an update.
U.S. President Donald Trump said Tuesday that he would likely extend the deadline for ByteDance, TikTok’s Beijing-based owner, to divest its U.S. operation.
“Probably yeah,” Trump said in response to a reporter’s question about the possibility of another extension.
Trump had signed an order in early April to keep TikTok running for another 75 days after a deal to sell the app to U.S. owners fell apart. His first extension, also made by executive order, came on Jan. 20.
The original divest-or-ban order was signed into law by President Biden with bipartisan support. It took effect Jan. 19.
The legal basis for Trump’s continued extensions is hazy at best. As the head of the executive branch of the U.S. government, it’s Trump’s responsibility to use his Justice Department to enforce the laws made by Congress.
Continued delays—and proven sharing of TikTok U.S. user data with China—could give users enough legal standing to challenge the non-enforcement of the law. —AN
More tech
—U.S. Senate passes GENIUS Act. The bill establishes a regulatory framework for stablecoins.
—xAI is burning through cash. A reported $1 billion per month for Elon Musk’s AI firm, but only $500 million in annual revenue so far.
—Meta is throwing money at OpenAI leaders. A poaching package that includes $100 million signing bonuses, per OpenAI CEO Altman.
—Microsoft and AMD collab on custom chips for Xbox gaming consoles and more.
—U.S. healthcare exchanges are sharing personal data with Google, LinkedIn, and others.
—Oakley and Prada are next on Meta’s smart glasses list. Both brands are owned by Ray-Ban proprietor EssilorLuxottica.
—Salesforce price hikes are coming. An average 6% bump, including for Slack.
—Apple wins patent appeal. A $300 million verdict for infringing on Optis wireless tech patents is overturned.
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