AI Billions, Job Cuts: Global Paradox

Hello everyone, and welcome to The beginning of empathy. I am your host, Empathy Keeper, and this is our dedicated time for 'Understanding for Empathy,' where we integrate and analyze news from 24 nations around the world.

Looking at the global news cycle from the past day, we encounter a strange paradox—it is as if two completely opposing worlds exist simultaneously. On one side, tens of billions of dollars are being poured into future technologies and infrastructure. Yet, on the other side, thousands of workers are losing their jobs, and the lives of ordinary citizens are being shaken by unstable utility costs and pension uncertainties. How can we understand and empathize with this stark 'two-faced' nature of the global economy? Today, we will delve into this massive paradox.

### 1. The Giant Bet on the Future: The Escalating AI Chip War

The epicenter of yesterday's global news was undoubtedly Artificial Intelligence. We saw significant market disruption as Alphabet, the parent company of Google, moved to sell its internally developed AI semiconductor, the Tensor Processing Unit, or TPU, to external clients. This movement was observed across several nations, including the United States, South Korea, Taiwan, and Türkiye.

Google has already showcased its technological prowess with the launch of its latest AI model, Gemini 3. Reports even suggest that they are in discussions with Meta regarding a multi-billion dollar TPU adoption deal. This is a critical development, signaling a potential crack in the near-monopoly previously held by the dominant AI chip manufacturer.

This intensifying competition has created winners and losers in the stock market. Google's stock surged, nearing a four trillion dollar market capitalization, while competitors saw declines. Notably, Broadcom, a company that collaborated with Google from the early stages of TPU development, saw its stock jump by over 11% in a single day, positioning it as a key beneficiary in the new AI supply chain.

This phenomenon is more than just corporate rivalry. It demonstrates the desperate extent to which global capital is betting on 'future productivity.' The hundreds of billions of dollars being invested in AI infrastructure will be the core engine reshaping the global economic landscape for decades to come.

### 2. The Shadow of Efficiency: Corporate Restructuring and Labor Market Anxiety

Simultaneously with this explosive investment in future technology, we continue to see news of massive restructuring in traditional industries and the telecommunications sector. In Spain, major companies like the telecom giant Telefónica and the media group Mediapro are pushing forward with large-scale redundancy plans, affecting thousands of employees.

Telefónica, despite being profitable, is attempting to lay off nearly 6,000 workers, drawing sharp criticism from the Spanish Labor Minister who called the move 'indecent.' This suggests that corporations are prioritizing workforce reduction to achieve short-term profitability improvements and secure funds for future investments.

Similar cost-cutting measures are evident elsewhere. In Poland, the large retail group Eurocash announced extensive cost reductions, including closing over 100 Delikatesy Centrum stores and transitioning to a franchise model due to poor performance. Alibaba, listed on the Hong Kong stock exchange, also saw its net profit plummet by 52% following massive investments in immediate retail and delivery service operations. Consequently, the company announced plans to 'significantly reduce' subsidy injections starting next quarter.

This restructuring is a global trend. Companies are reducing existing workforces under the banner of 'cost efficiency' to prepare for the age of AI and automation. While this may boost corporate financial health in the short term, it creates severe livelihood instability for the laid-off workers and their families—a true 'Crisis of Empathy.'

### 3. Infrastructure and Public Services: The Determinants of Quality of Life

News concerning national infrastructure and public services also demands our attention. In the United Kingdom, the government approved the construction plan for a third runway at Heathrow Airport, a massive project requiring 49 billion pounds, or about 80 trillion Korean won. While proponents emphasize the economic benefits, the plan faces strong opposition from environmental groups and local residents.

In Tokyo, Japan, plans were announced for the extension of the Yurakucho Line and direct operation between the Musashino Line and the Seibu Ikebukuro Line. This is expected to significantly improve commuting convenience for residents in suburban areas. Infrastructure investment is directly linked to the quality of life for citizens.

Conversely, instability in basic services remains a major concern. Brazil experienced power and water outages; six districts in Brasília faced up to six hours of power cuts due to maintenance, and the state of Santa Catarina announced large-scale power disconnections for customers with systematic non-payment of electricity bills. In Indonesia, negotiations between Shell and the state-owned energy company Pertamina for fuel supply are nearing completion, highlighting the critical importance of securing energy stability.

In Türkiye, changes to electricity subsidy criteria, effective January 1st next year, will affect approximately 2.5 million high-consumption households. Germany also experienced power outages affecting thousands of homes due to transmission line issues. The stability of public services is a fundamental function of the state, and any change immediately impacts the daily lives of individuals.

### 4. Instability in Retirement Planning and Personal Asset Management

Globally, anxiety over retirement planning and personal asset management is escalating. In Argentina, the December pension payment schedule was announced, including a 2.3% increase and a bonus adjusted for inflation. However, amidst high inflation and economic uncertainty, pensioners' worries persist.

While Spain's average retirement pension is relatively high, concerns about the sustainability of the pension system are growing as the Baby Boomer generation begins to retire en masse. News about the Canada Pension Plan and Old Age Security payments also underscores the importance of government-led retirement schemes.

This instability is driving individual investors toward safe-haven assets. News from the US, Australia, Canada, and India indicates a surge in interest in Individual Retirement Accounts, or IRAs, that hold physical gold. This shows that people, weary of traditional financial market volatility, are choosing gold as an inflation hedge. In Türkiye, efforts continue to mitigate the real income reduction caused by inflation, with expected wage increases for civil servants and pensioners projected to be between 14% and 16% starting next January.

### 5. Empathetic Insight: Predicting the Future Economic Shift

The core theme running through yesterday's global news is 'Transition.' Massive investment in AI and advanced technology promises a new era of productivity, but the resulting restructuring is severely impacting existing labor markets. Corporations are cutting staff in the name of 'efficiency' and reinvesting those savings into the 'future'—a self-perpetuating cycle.

This transition period presents two critical empathetic challenges.

First, the social responsibility toward the 'victims of transition.' The countless workers being laid off in telecom, retail, and media are not simply obsolete; they are caught in the wave of massive technological change. It is a crucial empathetic duty for governments and corporations to provide education, retraining support, and adequate social safety nets to help them reintegrate into the new economic system.

Second, the fair distribution of 'future wealth.' If the immense wealth generated by AI and automation is concentrated solely among a few tech companies and investors, global economic inequality will deepen dramatically. The instability of pension systems and the rising cost of public services are ultimately linked to this issue of wealth distribution. We must seek 'Empathy Ideas' that ensure the benefits of technological progress are shared by all.

In conclusion, the global news from yesterday delivers a clear message: 'The future has already begun, but the path to that future is painful.' The need for empathy and solidarity with laid-off workers is just as urgent as the race for AI chip performance.

Today, Empathy Keeper has provided an in-depth analysis of the global economic transition and the human suffering hidden beneath it. Reviewing the integrated news articles reminds us just how complexly intertwined our world is. As we dream of a world where everyone can feel Empathy, I ask you to join me in considering how we can ensure no one is left behind in this massive wave of change.

Thank you, and I will see you in the next update.