Microsoft cuts 4,800 AI jobs; investors pivot to hyperscalers like Meta
META•Microsoft will eliminate 4,800 AI division positions in early July, reflecting broader cost cuts in tech. A leading bank projects investors will shift from semiconductor stocks toward hyperscalers such as Meta, even as startup Even Realities raises $150M at a $1B valuation for smart glasses.
1. Microsoft announces 4,800 AI division layoffs
Microsoft confirmed plans to cut 4,800 positions in its AI and cloud research units in early July, aiming to streamline expenses and improve operational efficiency. The reduction marks one of the largest tech workforce adjustments focused on realigning investment toward core AI development.
2. Investor rotation favors hyperscalers including Meta
With semiconductor stocks showing recent softness, major investors are reallocating capital toward hyperscalers that operate large-scale AI infrastructure. Companies capable of scaling data centers and cloud services, such as Meta, stand to benefit from this strategic shift.
3. Even Realities secures $150M for smart glasses
Even Realities closed a $150 million Series C funding round at a $1 billion valuation to boost production of its mixed-reality smart glasses. This influx underscores growing venture interest in immersive hardware that could enhance social media and metaverse offerings.
