If you want to understand how AI is reshaping business, picture it as the other massive innovation of our time: GLP-1 drugs. Both shed weight by suppressing cravings; both exacerbate existing inequities (aka the rich get richer) before generating wider prosperity; and both are having a greater impact than projected as early adopters are hesitant […]

my thesis is that firms (notably tech companies) have also discovered a weight loss drug and are also being coy about it. Recent financial news features two stories: layoffs and record profits. These are related. There’s no mystery to the surface narrative. A company lays off 5%, 10%, or even 25% of its workforce and, 6 to 12 months later, after severance pay and expenses are flushed through the P/L, its operating margin hits new heights. The ultimate peanut-butter-and-chocolate shareholder confection is Meta, which produced a singular Hall of Fame quarter in Q4.

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