/Dispatch #103
Microsoft cut 4,800 roles, its deepest Xbox overhaul ever, while spending over $100B on AI this year. Execs say the jobs aren't replaced by AI, but the work is changing.

Four months after cutting 8,000 jobs and reassigning 7,000 to AI teams, Zuckerberg told staff Meta's agent progress "hasn't accelerated the way we expected," even as it spends up to $145B this year. He's asking for three to six more months.




+12Tuberculosis kills over a million people a year partly because its outer shell blocks most drugs. UMass Amherst researchers built an AI that predicts which compounds can slip through, turning a slow one-by-one hunt into a fast screen.



Gartner projects 60% of firms will run 2-to-5-person engineering teams by 2029, up from 15% today, as AI absorbs routine work. The warning: gut junior hiring to do it and you hollow out the talent pipeline.



AI token economy splits as spending surges 10x while companies question tokenmaxxing returns
Tl;dr: AI bills jumped 10x this year, and more tokens rarely meant more work.
Tesla caps employee AI spending at $200 per week as corporate America confronts runaway costs
Tl;dr: Tesla gamified AI use, then capped it at $200 a week.
Companies slash AI costs 65% by making Claude and Codex talk like cavemen
Tl;dr: The cure for runaway AI bills: make the model talk less.