AI efficiency testing bureaucracy

Workforce Reshaping - AI disruption is causing a 13% drop in employment for workers under 25 in roles exposed to AI [2] - Big Tech companies are prioritizing builders over bureaucrats, leading to a reckoning for mid-level managers [2] - Google cut 35% of its small team managers [3] - Microsoft shed 15,000 roles this summer by thinning out management ranks [3] - Amazon is ordering a 15% boost in the ratio of individual contributors to managers [3] - One manager with AI tools can now do the work of three, allowing companies to flatten org charts [4] - This shift frees up cash for hyperscalers to spend on AI talent and custom silicone [5] AI Investment and Competition - Microsoft and Amazon have committed roughly $120 billion in record capex spend this year [7] - Companies are building large language models and proprietary tech to compete with Nvidia [7] - Saving in other areas is necessary to recruit talent and pay for hundreds of millions of dollars in compensation packages [8] - Efficiencies are gained by building AI tech in-house rather than relying on third-party software companies [8]