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Plus: Microsoft cuts 7000 jobs, Trump rewrite AI Chip Curbs, Perpelxy+Paypal partnership
KulDeep Singh
May 14, 2025
In partnership with
Hey CoolDeep AI Readers,
It's Wednesday—halfway through the week! Let's keep pushing forward.
n today's AI Mastery Digest, we explore how artificial intelligence is reshaping the tech landscape. Microsoft is laying off approximately 7,000 employees, Meanwhile, the Trump administration easing export restrictions on advanced AI chips to promote U.S. innovation. Perplexity AI has partnered with PayPal to introduce an in-chat shopping feature.
In Today’s Edition:
👔 Microsoft Lays Off 7,000 as AI Takes Center Stage
🏿 Trump Scraps AI Chip Export Limits Amid Industry Pressure
🛍️ Chat, Click, Buy: Perplexity & PayPal Launch AI-Powered In-Chat Shopping
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Microsoft
Image generated in Midjourney
Microsoft announced the layoff of approximately 7,000 employees, representing about 3% of its global workforce. This move is part of a strategic shift to prioritize artificial intelligence (AI) development and streamline operations. The layoffs span various departments and geographies, including management roles, and are aimed at enhancing organizational agility in a rapidly evolving tech landscape.
Key Highlights:
Scope of Layoffs: Approximately 7,000 positions eliminated, affecting about 3% of Microsoft's global workforce.
Strategic Focus: The company is reallocating resources to invest heavily in AI, with plans to spend up to $80 billion in the fiscal year 2025 on AI infrastructure and development.
Operational Streamlining: The layoffs are part of efforts to reduce management layers and increase organizational agility, aligning with CEO Satya Nadella's vision for a more efficient structure.
Financial Context: Despite strong quarterly revenues of $70.07 billion, Microsoft is undertaking these layoffs to manage costs associated with its significant investments in AI and to maintain profitability.
💭 What I Think:
For professionals in the tech sector, this underscores the importance of adaptability and continuous learning, especially in emerging fields like AI.
Overall, Microsoft's move signals a significant shift in the industry's focus, emphasizing the growing centrality of AI in shaping business strategies and workforce dynamics. Read More
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Trump Administration
Image generated in Ideogram,
The Trump administration is set to rescind the Biden-era "AI Diffusion Rule," which imposed complex restrictions on exporting advanced AI chips to countries like China. This move aims to simplify export controls, bolster U.S. innovation, and strengthen ties with allies investing in AI infrastructure. While the new policy is being developed, existing export limits remain in effect.
Key Highlights:
Rescinding the AI Diffusion Rule: The Trump administration will revoke the Biden-era AI diffusion rule, which was set to take effect on May 15, 2025.
Simplified Export Framework: A new, streamlined export policy is being developed to replace the complex tiered system, aiming to bolster American innovation and maintain U.S. competitiveness in AI technology.
Industry Impact: Major tech companies, including Nvidia, have welcomed the move, viewing it as a positive step toward sustaining U.S. leadership in AI.
Ongoing Export Limits: Until the new policy is finalized, existing export restrictions will continue to be enforced.
💭 What I Think:
The rescinding of the AI diffusion rule may alleviate immediate concerns for U.S. tech companies, the development of a new export framework will be crucial in balancing national security interests with the need for innovation and global collaboration. Read More
Perplexity AI
Image by Google
Perplexity AI has partnered with PayPal to introduce an in-chat shopping feature, enabling users to search for products and complete purchases directly within the chat interface. This integration aims to streamline the online shopping experience by combining AI-driven product recommendations with secure payment processing.
Seamless Shopping: Users can now discover and purchase products without leaving the chat, thanks to the integration of PayPal's payment system.
AI-Powered Recommendations: Perplexity's AI provides personalized product suggestions based on user queries, enhancing the relevance of search results.
Visual Search Feature: The "Snap to Shop" tool allows users to upload images and find similar products, simplifying the search process.
Strategic Partnerships: Collaborations with platforms like Shopify expand the range of available products and merchants within the chat interface.
💭 What I Think:
By merging conversational AI with e-commerce, the partnership simplifies the shopping process, making it more intuitive and efficient. The addition of visual search capabilities further enhances user experience, catering to the growing demand for seamless and personalized online shopping. Read More
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