Amazon's shares tumbled after the company announced a massive increase in spending on artificial intelligence (AI) projects, while the UK's £8 billion research fund faces "hard decisions" due to government directives, and Canada unveiled a plan to bolster its auto industry, signaling a shift away from the US. These developments, along with the US's efforts to counter China's dominance in critical minerals and Pinterest's firing of engineers for tracking job cuts, highlight significant shifts in the technology and business sectors.
Amazon revealed its plans to spend $200 billion this year on building out its business, with a significant portion allocated to AI. This represents a substantial increase from the $125 billion spent last year. However, investors did not appear to welcome the news, as Amazon's shares fell by more than 11% in after-hours trading, according to a report by the BBC. The company's spending plans are now the most aggressive among the Big Tech companies, which collectively expect to spend around $650 billion on AI and related projects.
In the UK, the head of UK Research and Innovation (UKRI), Ian Chapman, warned that the organization faces "hard decisions" regarding funding future projects. This follows government instructions to "focus and do fewer things better," which will result in negative outcomes for some, according to Chapman. The changes represent a major reorganisation of how Britain's scientific research and innovation is prioritized and funded with public money. The pause on new grants is part of this reorganisation.
Meanwhile, the US launched an initiative to establish a trade zone for critical minerals, aiming to reduce China's dominance in the industry. The State Department hosted the first Critical Minerals Ministerial event, attended by countries and organizations including the UK, the European Union, Japan, India, South Korea, Australia, and the Democratic Republic of Congo. Delegates discussed the availability of and access to minerals crucial to manufacturing various products.
In Canada, Prime Minister Mark Carney unveiled a plan to support the country's car industry and its transition to electric vehicles. The new initiatives, announced on Thursday, are part of Canada's efforts to reduce its reliance on the US, amid President Donald Trump's push for more domestic car production. The strategy includes financial incentives for carmakers to invest in Canada and the reintroduction of rebates for EVs.
Finally, Pinterest dismissed two engineers for improperly accessing confidential company information to identify the locations and names of employees who lost their jobs in a recent round of layoffs. The company had announced job cuts, with CEO Bill Ready stating he was "doubling down on an AI-forward approach." The layoffs impacted about 15% of the workforce, or roughly 700 roles.
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