AI News Weekly – Issue #457: – Dec 3rd 2025
AI in the Markets
Amazon just dropped $50 billion on AI infrastructure for government customers, and Elon’s xAI is about to close a $15 billion round at a $230 billion valuation. Meanwhile, the guy who called the 2008 crash—Michael Burry—is now shorting Nvidia and saying the real demand is “ridiculously small”. AI spending is set to blast past $1.5 trillion in 2025, making it way bigger than the dot-com bubble, and it’s all happening twice as fast. Even OpenAI’s Sam Altman is out here admitting investors are “overexcited about AI.” So yeah, it’s getting weird.
Here’s the thing that’s freaking people out: Nvidia’s making a $100 billion deal where they’re basically funding OpenAI to buy… Nvidia’s own chips. It’s like your dealer giving you money to buy their product. But the bulls aren’t backing down—JP Morgan says “there was a bubble, it burst. We don’t think we’re in one now for AI”, and OpenAI’s revenue jumped to $13 billion while Anthropic went from $87 million to $7 billion in a year—an 80x increase. Those are real numbers, not vaporware.
But underneath all the money flying around, companies are quietly cutting thousands of jobs. Tech layoffs in 2025 have already hit 182,963 people across 626 companies, with many literally saying they’re replacing humans with AI. Salesforce axed 4,000 customer support roles in September, flat-out saying AI can do 50% of the work, and Klarna’s CEO said they shrunk headcount by 40%, partly because of AI. So we’ve got this bizarre situation where billions are flooding into AI companies while the same technology is being used to justify mass layoffs. The full picture suggests we’re either witnessing the birth of the most transformative technology ever, or setting up for a spectacular crash. Maybe both.
