Amazon shares tumbled on Thursday after the company announced a significant increase in spending on artificial intelligence (AI) projects, joining other tech giants in an AI spending spree. The company expects to spend $200 billion this year on building out its business, a substantial increase from the $125 billion spent last year, according to Reuters. This news, however, was not welcomed by investors, as Amazon's shares fell by more than 11% in after-hours trading.
The announcement came as Amazon reported its annual financial figures. The company's spending plans are now the most aggressive among Big Tech companies, which include Meta, Google, and Microsoft. Collectively, these companies expect to spend around $650 billion on AI and related projects.
In other news, Pinterest made headlines by firing two engineers for tracking which employees lost their jobs in a recent round of layoffs. The company had announced job cuts, with CEO Bill Ready stating in an email that he was "doubling down on an AI-forward approach," according to an employee who posted the memo on LinkedIn. The layoffs impacted about 15% of the workforce, or roughly 700 roles, but the company did not specify which teams or workers were affected. The engineers, however, wrote custom scripts to improperly access confidential company information to identify the dismissed employees.
Meanwhile, the UK's £8 billion research fund is facing "hard decisions" as it pauses new grants. Ian Chapman, the boss of UK Research and Innovation (UKRI), warned that the organization faces tough choices on funding future projects. The government instructed the organization to "focus and do fewer things better," which "will result in negative outcomes for some," according to Chapman in an open letter. This represents a major reorganization of how Britain's scientific research and innovation is prioritized and funded with public money, which has angered many in the research community.
In the political arena, former US President Donald Trump endorsed Japan's Prime Minister Sanae Takaichi ahead of a snap election. Trump wrote in a Truth Social post that Takaichi has "already proven to be a strong, powerful, and wise leader... one that truly loves her country," according to Reuters. While it is rare for US presidents to publicly back candidates in foreign elections, Trump has done so before.
Finally, the US healthcare system continues to face challenges. Jeff King, a former pastor from Kansas, was shocked by a $160,000 bill for a medical procedure, despite having a cost-sharing alternative plan. "It was pretty traumatic," King said, according to the BBC. He is one of approximately 100 million Americans who are estimated to have similar plans. The situation highlights the ongoing debate about how to fix the US healthcare system, with no agreement on the best approach.
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