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A picture shows logos of the big technology companies named GAFAM, for Google, Apple, Facebook, Amazon and Microsoft, in Mulhouse, France, on June 2, 2023.

Sebastien Bozon | AFP | Getty Images

Late last year, an artificial intelligence engineer at Amazon was wrapping up the work week and getting ready to spend time with some friends visiting from out of town. Then, a Slack message popped up. He suddenly had a deadline to deliver a project by 6 a.m. on Monday.

There went the weekend. The AI engineer bailed on his friends, who had traveled from the East Coast to the Seattle area. Instead, he worked day and night to finish the job.

But it was all for nothing. The project was ultimately “deprioritized,” the engineer told CNBC. He said it was a familiar result. AI specialists, he said, commonly sprint to build new features that are often suddenly shelved in favor of a hectic pivot to another AI project.

The engineer, who requested anonymity out of fear of retaliation, said he had to write thousands of lines of code for new AI features in an environment with zero testing for mistakes. Since code can break if the required tests are postponed, the Amazon engineer recalled periods when team members would have to call one another in the middle of the night to fix aspects of the AI feature’s software.

AI workers at other Big Tech companies, including Google and Microsoft, told CNBC about the pressure they are similarly under to roll out tools at breakneck speeds due to the internal fear of falling behind the competition in a technology that, according to Nvidia CEO Jensen Huang, is having its “iPhone moment.”

The tech workers spoke to CNBC mostly on the condition that they remain unnamed because they weren’t authorized to speak to the media. The experiences they shared illustrate a broader trend across the industry, rather than a single company’s approach to AI.

They spoke of accelerated timelines, chasing rivals’ AI announcements and an overall lack of concern from their superiors about real-world effects, themes that appear common across a broad spectrum of the biggest tech companies — from Apple to Amazon to Google.

Engineers and those with other roles in the field said an increasingly large part of their job was focused on satisfying investors and not falling behind the competition rather than solving actual problems for users. Some said they were switched over to AI teams to help support fast-paced rollouts without having adequate time to train or learn about AI, even if they are new to the technology.

A common feeling they described is burnout from immense pressure, long hours and mandates that are constantly changing. Many said their employers are looking past surveillance concerns, AI’s effect on the climate and other potential harms, all in the name of speed. Some said they or their colleagues were looking for other jobs or switching out of AI departments, due to an untenable pace.

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This is the dark underbelly of the generative AI gold rush. Tech companies are racing to build chatbots, agents and image generators, and they’re spending billions of dollars training their own large language models to ensure their relevance in a market that’s predicted to top $1 trillion in revenue within a decade.

Tech’s megacap companies aren’t being shy about acknowledging to investors and employees how much AI is shaping their decision-making.

Microsoft Chief Financial Officer Amy Hood, on an earnings call earlier this year, said the software company is “repivoting our workforce toward the AI-first work we’re doing without adding material number of people to the workforce,” and said Microsoft will continue to prioritize investing in AI as “the thing that’s going to shape the next decade.”

Meta CEO Mark Zuckerberg spent much of his opening remarks on his company’s earnings call last week focused on AI products and services and the advancements in its large language model called Llama 3.

“This leads me to believe that we should invest significantly more over the coming years to build even more advanced models and the largest scale AI services in the world,” Zuckerberg said.

At Amazon, CEO Andy Jassy told investors last week that the “generative AI opportunity” is almost unprecedented, and that increased capital spending is necessary to take advantage of it.

“I don’t know if any of us has seen a possibility like this in technology in a really long time, for sure since the cloud, perhaps since the Internet,” Jassy said.

Speed above everything

On the ground floor, where those investments are taking place, things can get messy.

The Amazon engineer, who lost his weekend to a project that was ultimately scuttled, said higher-ups seemed to be doing things just to “tick a checkbox,” and that speed, rather than quality, was the priority while trying to recreate products coming out of Microsoft or OpenAI.

In an emailed statement to CNBC, an Amazon spokesperson said, the company is “focused on building and deploying useful, reliable, and secure generative AI innovations that reinvent and enhance customers’ experiences,” and that Amazon is supporting its employees to “deliver those innovations.”

“It’s inaccurate and misleading to use a single employee’s anecdote to characterize the experience of all Amazon employees working in AI,” the spokesperson said.

Last year marked the beginning of the generative AI boom, following the debut of OpenAI’s ChatGPT near the end of 2022. Since then, Microsoft, Alphabet, Meta, Amazon and others have been snapping up Nvidia’s processors, which are at the core of most big AI models.

While companies such as Alphabet and Amazon continue to downsize their total headcount, they’re aggressively hiring AI experts and pouring resources into building their models and developing features for consumers and businesses.

Eric Gu, a former Apple employee who spent about four years working on AI initiatives, including for the Vision Pro headset, said that toward the end of his time at the company, he felt “boxed in.” 

“Apple is a very product-focused company, so there’s this intense pressure to immediately be productive, start shipping and contributing features,” Gu said. He said that even though he was surrounded by “these brilliant people,” there was no time to really learn from them.

“It boils down to the pace at which it felt like you had to ship and perform,” said Gu, who left Apple a year ago to join AI startup Imbue, where he said he can work on equally ambitious projects but at a more measured pace.  

Apple declined to comment.

Microsoft CEO Satya Nadella (R) speaks as OpenAI CEO Sam Altman (L) looks on during the OpenAI DevDay event in San Francisco on Nov. 6, 2023.

Justin Sullivan | Getty Images

An AI engineer at Microsoft said the company is engaged in an “AI rat race.”

When it comes to ethics and safeguards, he said, Microsoft has cut corners in favor of speed, leading to rushed rollouts without sufficient concerns about what could follow. The engineer said there’s a recognition that because all of the large tech companies have access to most of the same data, there’s no real moat in AI.

Microsoft didn’t provide a comment.

Morry Kolman, an independent software engineer and digital artist who has worked on viral projects that have garnered more than 200,000 users, said that in the age of rapid advancement in AI, “it’s hard to figure out where is worth investing your time.”

“And that is very conducive to burnout just in the sense that it makes it hard to believe in something,” Kolman said, adding, “I think that the biggest thing for me is that it’s not cool or fun anymore.”

At Google, an AI team member said the burnout is the result of competitive pressure, shorter timelines and a lack of resources, particularly budget and headcount. Although many top tech companies have said they are redirecting resources to AI, the required headcount, especially on a rushed timeline, doesn’t always materialize. That is certainly the case at Google, the AI staffer said. 

The company’s hurried output has led to some public embarrassment. Google Gemini’s image-generation tool was released and promptly taken offline in February after users discovered historical inaccuracies and questionable responses. In early 2023, Google employees criticized leadership, most notably CEO Sundar Pichai, for what they called a “rushed” and “botched” announcement of its initial ChatGPT competitor called Bard.

The Google AI engineer, who has over a decade of experience in tech, said she understands the pressure to move fast, given the intense competition in generative AI, but it’s all happening as the industry is in cost-cutting mode, with companies slashing their workforce to meet investor demands and “increase their bottom line,” she said. 

There’s also the conference schedule. AI teams had to prepare for the Google I/O developer event in May 2023, followed by Cloud Next in August and then another Cloud Next conference in April 2024. That’s a significantly shorter gap between events than normal, and created a crunch for a team that was “beholden to conference timelines” for shipping features, the Google engineer said.

Google didn’t provide a comment for this story.

The sentiment in AI is not limited to the biggest companies.

An AI researcher at a government agency reported feeling rushed to keep up. Even though the government is notorious for moving slower than companies, the pressure “trickles down everywhere,” since everyone wants to get in on generative AI, the person said.

And it’s happening at startups.

There are companies getting funded by “really big VC firms who are expecting this 10X-like return,” said Ayodele Odubela, a data scientist and AI policy advisor.

“They’re trying to strike while the iron is hot,” she said.

‘A big pile of nonsense’

Regardless of the employer, AI workers said much of their jobs involve working on AI for the sake of AI, rather than to solve a business problem or to serve customers directly. 

“A lot of times, it’s being asked to provide a solution to a problem that doesn’t exist with a tool that you don’t want to use,” independent software engineer Kolman told CNBC. 

The Microsoft AI engineer said a lot of tasks are about “trying to create AI hype” with no practical use. He recalled instances when a software engineer on his team would come up with an algorithm to solve a particular problem that didn’t involve generative AI. That solution would be pushed aside in favor of one that used a large language model, even if it were less efficient, more expensive and slower, the person said. He described the irony of using an “inferior solution” just because it involved an AI model.

A software engineer at a major internet company, which the person asked to keep unnamed due to his group’s small size, said the new team he works on dedicated to AI advancement is doing large language model research “because that’s what’s hot right now.”

The engineer has worked in machine learning for years, and described much of the work in generative AI today as an “extreme amount of vaporware and hype.” Every two weeks, the engineer said, there’s some sort of big pivot, but ultimately there’s the sense that everyone is building the same thing.

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He said he often has to put together demos of AI products for the company’s board of directors on three-week timelines, even though the products are “a big pile of nonsense.” There’s a constant effort to appease investors and fight for money, he said. He gave one example of building a web app to show investors even though it wasn’t related to the team’s actual work. After the presentation, “We never touched it again,” he said.

A product manager at a fintech startup said one of his projects involved a rebranding of the company’s algorithms to AI. He also worked on a ChatGPT plug-in for customers. Executives at the company never told the team why it was needed.

The employee said it felt “out of order.” The company was starting with a solution involving AI without ever defining the problem.

An AI engineer who works at a retail surveillance startup told CNBC that he’s the only AI engineer at a company of 40 people and that he handles any responsibility related to AI, which is an overwhelming task.

He said the company’s investors have inaccurate views on the capabilities of AI, often asking him to build certain things that are “impossible for me to deliver.” He said he hopes to leave for graduate school and to publish research independently.

Risky business

The Google staffer said that about six months into her role, she felt she could finally keep her head above water. Even then, she said, the pressure continued to mount, as the demands on the team were “not sustainable.”

She used the analogy of “building the plane while flying it” to describe the company’s approach to product development.

Amazon Web Services CEO Adam Selipsky speaks with Anthropic CEO and co-founder Dario Amodei during AWS re:Invent 2023, a conference hosted by Amazon Web Services, at The Venetian Las Vegas in Las Vegas on Nov. 28, 2023.

Noah Berger | Getty Images

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YouTube donating $15 million in LA wildfire relief, support for creators days before TikTok ban

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YouTube donating  million in LA wildfire relief, support for creators days before TikTok ban

Charred remains of buildings are pictured following the Palisades Fire in the Pacific Palisades neighborhood in Los Angeles, California, U.S. Jan. 15, 2025. 

Mike Blake | Reuters

Google and YouTube will donate $15 million to support the Los Angeles community and content creators impacted by wildfires, YouTube CEO Neal Mohan announced in a blog post Wednesday.

The contributions will flow to local relief organizations including Emergency Network Los Angeles, the American Red Cross, the Center for Disaster Philanthropy and the Institute for Nonprofit News, the blog said. When the company’s LA offices can safely reopen, impacted creators will also be able to use YouTube’s production facilities “to recover and rebuild their businesses” as well as access community events.

“To all of our employees, the YouTube creator community, and everyone in LA, please stay safe and know we’re here to support,” Google CEO Sundar Pichai posted on X.

The move comes days before Sunday’s impending TikTok ban that has already seen content creators begin asking fans to follow them on other social platforms. YouTube Shorts, a short-form video platform within YouTube, is a competitor to TikTok, along with Meta’s Instagram Reels and the fast-growing Chinese app Rednote, otherwise known as Xiahongshu.

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“In moments like these, we see the power of communities coming together to support each other — and the strength and resilience of the YouTube community is like no other,” Mohan wrote.

YouTube’s contributions are in line with a host of other LA companies pledging multi-million dollar donations aimed at assisting employees and residents impacted by the LA fires. Meta announced a $4 million donation split between CEO Mark Zuckerberg and the company while both Netflix and Comcast pledged $10 million donations to multiple aid groups.

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.

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TikTok’s U.S. operations could be worth as much as $50 billion if ByteDance decides to sell

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TikTok’s U.S. operations could be worth as much as  billion if ByteDance decides to sell

Jakub Porzycki | Nurphoto | Getty Images

Business moguls such as Elon Musk should be prepared to spend tens of billions of dollars for TikTok’s U.S. operations should parent company ByteDance decide to sell. 

TikTok is staring at a potential ban in the U.S. if the Supreme Court decides to uphold a national security law in which service providers such as Apple and Google would be penalized for hosting the app after the Sunday deadline. ByteDance has not indicated that it will sell the app’s U.S. unit, but the Chinese government has considered a plan in which X owner Musk would acquire the operations, as part of several scenarios in consideration, Bloomberg News reported Monday.

If ByteDance decides to sell, potential buyers may have to spend between $40 billion and $50 billion. That’s the valuation that CFRA Research Senior Vice President Angelo Zino has estimated for TikTok’s U.S. operations. Zino based his valuation on estimates of TikTok’s U.S. user base and revenue in comparison to rival apps. 

TikTok has about 115 million monthly mobile users in the U.S., which is slightly behind Instagram’s 131 million, according to an estimate by market intelligence firm Sensor Tower. That puts TikTok ahead of Snapchat, Pinterest and Reddit, which have U.S. monthly mobile user bases of 96 million, 74 million and 32 million, according to Sensor Tower.

Zino’s estimate, however, is down from the more than $60 billion that he estimated for the unit in March 2024, when the House passed the initial national security bill that President Joe Biden signed into law the following month.

The lowered estimate is due to TikTok’s current geopolitical predicament and because “industry multiples have come in a bit” since March, Zino told CNBC in an email. Zino’s estimate doesn’t include TikTok’s valuable recommendation algorithms, which a U.S. acquirer would not obtain as part of a deal, with the algorithms and their alleged ties to China being central to the U.S. government’s case that TikTok poses a national security threat.

Analysts at Bloomberg Intelligence have their estimate for TikTok’s U.S. operations pegged in the range of $30 billion to $35 billion. That’s the estimate they published in July, saying at the time that the value of the unit would be “discounted due to it being a forced sale.”  

Bloomberg Intelligence analysts noted that finding a buyer for TikTok’s U.S. operations that can both afford the transaction and deal with the accompanying regulatory scrutiny on data privacy makes a sale challenging. It could also make it difficult for a buyer to expand TikTok’s ads business, they wrote. 

A consortium of businesspeople including billionaire Frank McCourt and O’Leary Ventures Chairman Kevin O’Leary put in a bid to buy TikTok from ByteDance. O’Leary has previously said the group would be willing to pay up to $20 billion to acquire the U.S. assets without the algorithm.

Unlike a Musk bid, O’Leary’s group’s bid would be free from regulatory scrutiny, O’Leary said in a Monday interview with Fox News.

O’Leary said that he’s “a huge Elon Musk fan,” but added “the idea that the regulator, even under Trump’s administration, would allow this is pretty slim.”

TikTok, X and O’Leary Ventures did not respond to requests for comment.

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Bitcoin approaches $100,000 again as a cool inflation reading fuels risk appetite

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Bitcoin approaches 0,000 again as a cool inflation reading fuels risk appetite

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Bitcoin extended its rebound on Wednesday, hovering just below $100,000 after another encouraging inflation report fueled investors’ risk appetite.

The price of the flagship cryptocurrency was last higher by more than 3% at $99,444.43, bringing its 2-day gain to about 7%, according to Coin Metrics.

The CoinDesk 20 index, which measures the broader market of cryptocurrencies, gained 6%.

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Bitcoin approaches $100,000 after Wednesday’s CPI data

Shares of Coinbase gained 6%. Bitcoin proxies MicroStrategy and Mara Holdings each gained about 4%.

Wednesday’s move followed the release of the December consumer price index, which showed core inflation unexpectedly slowed in December. A day earlier, the market got another bright inflation reading in the producer price index, which showed wholesale prices rose less in December than expected.

The post-election crypto rally fizzled into the end of 2024 after Federal Reserve Chair Jerome Powell sounded an inflation warning on Dec. 18, and bitcoin suffered even steeper losses last week as a spike in bond yields prompted investors to dump growth-oriented risk assets. This Monday, bitcoin briefly dipped below $90,000.

The price of bitcoin has been taking its cue from the equities market in recent weeks, thanks in part to the popularity of bitcoin ETFs, which have led to the institutionalization of the asset. Bitcoin’s correlation with the S&P 500 has climbed in the past week, while its correlation with gold has dropped sharply since the end of December.

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