AI "Wrecking Ball" Keeps Swinging Through Markets

AI was a wrecking ball last week, separating winners and losers. One example: Block Inc. (XYZ) Less than a week after a Citrini report came out warning about a dystopian AI future characterized by huge job losses, Block announced it was cutting 40% of its workforce in a bet that AI can replace those workers

That’s 4,000 jobs lost as a result. The financial services and digital payments company helmed by Jack Dorsey soared on the news.

Block Inc. (XYZ)

If you are the CEO or CFO of a struggling software company, maybe you look at this announcement as a model. On the other hand, Block has been restructuring for years and is seen as a bloated enterprise. So, AI could just be an excuse to make long overdue moves. We will see who goes next.

Meanwhile, CoreWeave Inc. (CRWV) reported a bigger-than-expected loss and warned of bigger-than-expected spending plans for 2026. The AI cloud computing company rents out access to AI semiconductors and computing power, boasting customers like Microsoft Corp. (MSFT), OpenAI, and Meta Platforms Inc. (META).

“Revenue bracketed guidance versus a traditional ~$hundred-million beat, and adjusted operating income missed with stronger capex and other costs ramped faster than expected,” wrote Citi's Tyler Radke, calling this a delayed gratification story. “Stepping back, Coreweave is delivering one of the fastest-ramping infrastructure businesses seen in the tech industry.”