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Major companies including Amazon, Nestlé, and UPS are slashing tens of thousands of jobs amid weak consumer sentiment and growing pressure to prove returns on massive AI investments.

What’s happening: Amazon plans to cut up to 14,000 corporate roles, with reports suggesting the total could reach 30,000. Nestlé is eliminating 16,000 positions across Europe, and Target and Procter & Gamble are also restructuring under new leadership. Unlike past downturns, this wave of cuts is hitting white-collar staff, as automation tools begin replacing administrative and entry-level office work.

A KPMG survey found 78% of U.S. executives feel pressure to show cost savings from AI, with average corporate AI spending now topping $130 million annually. Economists warn that if layoffs accelerate, they could deepen economic uncertainty in an already “low-hiring, low-firing” job market.

The bigger picture: The cuts highlight a pivotal moment where companies are rebalancing for an AI-driven future — trimming human roles while betting heavily on automation to sustain growth and margins.

Nvidia has officially become the world’s first public company to reach a $5 trillion market cap, solidifying its role as the biggest winner of the AI hardware boom.

The milestone came after shares rose 5.6% on Wednesday, boosted by President Trump’s comments about discussing Nvidia’s Blackwell chips with China’s Xi Jinping and CEO Jensen Huang’s forecast of $500 billion in AI chip sales. Nvidia also announced plans to build seven new U.S. supercomputers and invest $1 billion in Nokia to support AI-powered 5G and 6G networks (which seems to be fast approaching).

Just three months after crossing $4 trillion, Nvidia’s valuation highlights how essential its GPUs have become to training and running large AI models. With demand showing no signs of slowing, Nvidia now sits at the center of the global AI economy — its chips effectively powering the infrastructure behind the entire industry.

OpenAI has completed its long-awaited recapitalization, officially becoming a for-profit company controlled by a new non-profit foundation — a major structural shift for one of the world’s most influential AI labs.

What’s happening: OpenAI’s new setup places the OpenAI Foundation in control of a for-profit entity called OpenAI Group, which can now raise funds and acquire companies freely.

Why it matters: The move gives OpenAI full financial and operational flexibility after years of tension between its mission-driven nonprofit roots and its capital-intensive ambitions. The hybrid model could help sustain its rapid growth while keeping formal accountability in place.

The bigger picture: This is such an interesting story, not least of all because the original goal of OpenAI (and even the origin of the name OPENAI), was to be an open-source non-profit with the goal of driving AGI for Humanity. That seems to not be the case now…

Sure Sam….

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Thanks for reading. Catch you next week

—The Future Stack team 😃