Tech Companies Grapple with AI Integration Amidst Layoffs, New Stablecoin Competition, and Global AI Infrastructure Race
Several significant developments unfolded in the tech world this week, ranging from questions surrounding AI-related layoffs to the emergence of new players in the stablecoin market and India's bid to attract global AI workloads.
A debate has emerged regarding the true reasons behind recent layoffs in the tech sector. Some companies, including Amazon and Pinterest, cited AI as the primary driver for cutting over 50,000 jobs in 2025, according to TechCrunch. However, a New York Times article questioned whether companies are genuinely adapting their workforces to AI or using it as a cover for other underlying issues, such as over-hiring during the pandemic. A Forrester report published in January further fueled this skepticism, arguing that "many companies announcing A.I.-related layoffs do not have mature, vetted A.I. applications ready to fill those roles," highlighting a trend of "AI-washing."
Meanwhile, the stablecoin landscape is experiencing a significant shift. Tether CEO Paolo Ardoino engaged in a "full-scale media blitz" this past week, with appearances in Fortune, Bloomberg, Reuters, and TechCrunch. This media push coincided with Tether's launch of USAT, a U.S.-regulated stablecoin issued through Anchorage Digital Bank. According to TechCrunch, USAT is Tether's "first product designed to comply with new federal rules and compete directly with Circle's USDC." The stablecoin market is becoming increasingly competitive, with Fidelity Investments launching its own stablecoin on Wednesday, joining JPMorgan Chase and PayPal in the race. For years, Ardoino had "avoided the United States, watching from offshore as regulators circle," TechCrunch reported.
In other news, India is making a bold move to attract global AI infrastructure investment. Finance Minister Nirmala Sitharaman announced a proposal in the country's annual budget offering foreign cloud providers zero taxes through 2047 on services sold outside India if they run those workloads from Indian data centers. The proposal, detailed in a PDF released by the finance minister, aims to provide a tax holiday on revenues from cloud services sold outside India. Sales to Indian customers would be routed through locally incorporated resellers and taxed domestically. This initiative comes as "the global race to build AI infrastructure accelerates," TechCrunch noted, even as power shortages and water stress threaten expansion in the South Asian nation.
Separately, Bill Gates addressed accusations contained in recently released Epstein files. The Verge reported that Gates called the accusations "absolutely absurd." The reports included emails that claimed Gates contracted an STD and wanted to surreptitiously give Melinda antibiotics.
Finally, The Verge reviewed the Xteink X4, a tiny pocket-friendly e-reader. The review noted that the device, which uses buttons instead of a touchscreen, "is packed with frustration and potential." The Xteink X4 can be a challenge to use, but a growing community is fixing that.
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