The Surprising Truth About "AI Jobs Apocalypse"

Welcome back!

Here’s your must-read news this morning:

• "AI Jobs Apocalypse" debunked

• China targets triple chip production

• 4chan and Kiwi Farms sue Ofcom

I’ve got all the details for you, so let’s dive in.

— Josh

MARKETS

💰 No AI Apocalypse: Studies Debunk Job Loss Hysteria, Highlight Productivity Gains

The Scoop: AI’s rise has fueled fears of a “job apocalypse” for young workers, but studies show a mixed impact: while AI adoption raises unemployment in some sectors, it enhances productivity and supports jobs in others, suggesting a nuanced economic impact, according to Reason.

The Details:

• A St. Louis Fed study found that tech-heavy fields like coding and math, with high AI use (80% exposure, 45% adoption), saw a modest 1.2 percentage point unemployment increase from 2022 to 2025, but low-AI fields like personal services stayed stable, showing AI’s impact is limited.

• A Stanford study using Anthropic’s data shows a 20% drop in software developer jobs for 22-25-year-olds since 2022, yet roles where AI enhances work are growing, proving AI can complement rather than replace workers.

• Experts note that 2022’s tech boom and post-pandemic shifts likely inflated job loss fears, meaning AI isn’t the sole driver of employment changes.

• AI is boosting productivity, especially for less-skilled workers, helping them work smarter and faster, though an MIT study suggests some firms are still learning how to leverage their AI investments.

What’s Next: AI’s creative destruction is reshaping the job market, but the panic over mass unemployment is exaggerated. As businesses refine AI use, productivity gains and new job types are likely to outpace short-term disruptions, mirroring the positive economic shifts of past technologies.

Markets Roundup

🏦 Economy & Policy

• ⭐ Editor’s Pick: Tech giants’ $375 billion global investment in AI-driven data centers in 2025 is fueling U.S. economic growth, contributing a quarter of recent GDP gains. (NYT)

• The new space economy is transforming Southern California, where the region added 11,000 aerospace jobs averaging $141,110 annually, more than double the county average, fueled by a new generation of entrepreneurs. (LAT)

• Japan’s top trade negotiator abruptly canceled a U.S. visit on Thursday, with unresolved issues stalling agreement on investment return terms. (RTS)

• Mexico will raise tariffs on Chinese imports, including cars, textiles, and plastics, to align with U.S. demands. (FP)

• Former UK Prime Minister Liz Truss warned of a "doom loop" threatening the UK economy, citing high inflation and interest rates. (BBG)

📈 Stock Market

• ⭐ Editor’s Pick: Nvidia reported better-than-expected earnings of $1.05 per share and revenue of $46.74 billion, surpassing analyst estimates of $1.01 per share and $46.06 billion. (CNBC)

• HP exceeded Wall Street’s fiscal Q3 earnings and revenue forecasts with adjusted earnings of $0.75 per share and $13.93 billion in revenue. (INV)

• CrowdStrike surpassed Wall Street expectations with Q3 earnings of $0.93 per share and revenue of $1.17 billion, beating analyst estimates of $0.83 per share and $1.15 billion. (IBD)

• Snowflake reported Q2 revenue of $1.14 billion, exceeding the $1.09 billion consensus estimate, with product revenue of $1.09 billion up 32% year-over-year. (BW)

🏢 Industry

• ⭐ Editor’s Pick: Google will invest $9 billion in Virginia through 2026 to expand cloud and AI infrastructure, bolstering U.S. data center capacity amid growing tech demand. (BBG)

• South Korean shipbuilder Hanwha will invest $5 billion in Philadelphia’s Hanwha Philly Shipyard to expand capacity with new docks and quays. (KED)

• Microsoft terminated two employees who participated in a sit-in at president Brad Smith’s office to protest the company’s ties to Israel. (CNBC)

• Steak 'n Shake intensified its criticism of Cracker Barrel's CEO Julie Felss Masino, unveiling MAGA-style hats demanding her dismissal amid backlash over the chain's rebranding. (FBN)

💵 Energy & Commodities

• ⭐ Editor’s Pick: The U.S. push for nuclear energy expansion is fueling demand for uranium enrichment, prompting companies to ramp up domestic production to reduce reliance on foreign supplies. (WSJ)

• Mitsubishi Corporation will exit Japanese offshore wind projects due to soaring costs. (NHK)

• The U.S. and Saudi Arabia aim to deepen mining cooperation, with the Kingdom’s industry minister and U.S. energy secretary discussing joint ventures to strengthen critical mineral supply chains. (AN)

• Goldman Sachs predicted Brent oil prices will drop to the low $50s by late 2026, driven by a global oil surplus. (INV)

🌕 Crypto

• ⭐ Editor’s Pick: Ether ETFs drew over $1 billion in net inflows over the past five days, outpacing Bitcoin ETFs by tenfold, signaling strong investor interest in Ethereum-based funds. (CT)

• Over 100 crypto entities urged U.S. lawmakers to pass legislation shielding blockchain developers from liability, citing risks to innovation from regulatory overreach. (CS)

• Circle partnered with Mastercard to expand USDC stablecoin settlements globally, integrating with the credit card company’s Middle East and Africa network. (IMP)

• Japan’s Metaplanet plans to raise $880 million through a share offering to fund Bitcoin purchases, aiming to bolster its $2.1 billion corporate treasury with 18,991 BTC. (TB)

SPONSOR

The future of AI customer service is at Pioneer

Position yourself at the forefront of AI customer service and join fellow AI leaders on October 9th, 2025 at Pioneer.

Pioneer is a summit for innovative customer service leaders to come together to explore the latest opportunities and challenges transforming service with AI Agents. We’ll be discussing the latest AI technology available, how it works, and the game-changing experiences it can deliver.

Plus you’ll hear real stories from AI customer service leaders at companies like Anthropic, Toast, Rocket Money, and more who have already implemented the latest technology, including successes they had, mistakes they made, and lessons they learned.

Save your seat today at pioneer.fin.ai.

TECH

💻 China Targets Triple AI Chip Production by 2026 to Cut Reliance on Nvidia

The Scoop: China’s chipmakers are set to triple AI chip production by 2026, aiming to reduce reliance on Nvidia amid U.S. export restrictions, according to the Financial Times.

The Details:

• Huawei plans to start production at a dedicated AI chip plant by the end of 2025, with two additional facilities expected to launch in 2026.

• The combined output of these three plants could exceed the current production capacity of similar lines at SMIC, China’s leading chipmaker.

• SMIC intends to double its 7-nanometer chip manufacturing capacity in 2026, with Huawei as its primary customer.

• Beijing is prioritizing domestic AI chip development to rival Nvidia’s China-specific H20 chip, driven by security concerns and U.S. sanctions limiting access to advanced technology.

• Huawei aims to mass-produce its advanced Ascend 910C AI chip in Q1 2025, despite challenges from low yields and U.S. restrictions.

What’s Next: China’s push to triple AI chip output could reshape the global semiconductor landscape, reducing dependence on foreign suppliers like Nvidia. Success in scaling production and improving yields may strengthen China’s tech self-sufficiency, but ongoing U.S. restrictions and technical challenges could hinder progress.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: A cybercriminal exploited Anthropic's Claude AI system to orchestrate an automated hacking operation targeting vulnerable companies through malware deployment and subsequent extortion schemes. (NBC)

• Singapore-based Sapient Intelligence has unveiled a brain-inspired AI system that outperforms large language models like ChatGPT on advanced reasoning tests. (LS)

• Researchers developed an AI image generator that creates visuals using light, rather than electricity and traditional hardware, using hundreds of times less energy. (NS)

• Google expanded access to its AI-powered video editor, Vids, adding pre-made avatars that can deliver scripted messages, image-to-video generation using Veo 3, and automatic transcript trimming. (TC)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Alef Aeronautics is set to begin tests of its road‑legal flying car at California airports, marking a first for vehicles with vertical‑takeoff capability. (IE)

• At a medical conference in Strasbourg, France, a surgical robot enabled a professor to perform a liver resection on a patient located in Hangzhou, China, from over 6,200 miles away. (PDO)

• Nottinghamshire Police is launching a trial of a robotic dog, outfitted with AI-powered weapon-detecting cameras, LiDAR 3D mapping, and a loudspeaker. (BU)

• Boston Dynamics released footage showing its quadrupedal robot Spot performing consecutive backflips, marking its most acrobatic ability yet. (NB)

🚀 Defense & Space

• ⭐ Editor’s Pick: The Pentagon conducted a groundbreaking test where AI directed F-35 pilots, marking a significant step in integrating the technology into military operations. (FOX)

• NATO has announced that all 32 member countries are on track to meet the alliance’s defense spending target of 2% of GDP in 2025, following Trump’s push for more spending. (DP)

• The Pentagon announced that Chinese nationals will no longer be permitted to service its cloud infrastructure, citing national security concerns. (USN)

• The U.S. Army is integrating AI into its training and cyber defense systems to enhance warfighter adaptability and accelerate response times to evolving threats. (PR)

💰 Venture Capital & Deals

• ⭐ Editor’s Pick: A former Polymarket executive's new venture, The Clearing Company, secured $15 million from Coinbase Ventures to build a regulated, onchain prediction market platform. (TB)

• Maisa AI, a provider of enterprise automation software designed to minimize AI hallucinations, has secured $25 million in a seed funding round led by Creandum. (TC)

• Bright Harbor, a developer of software that helps communities prepare for and manage natural disasters, has raised $10 million in a seed funding round. (AX)

• Vox AI has secured $8.7 million in seed funding, led by Headline, to advance its fully autonomous voice ordering platform for quick-service restaurant drive-thrus. (RTN)

FREEDOM

📢 4chan, Kiwi Farms Challenge UK’s Online Safety Act, Allege Attack on American Liberties

The Scoop: Two staunchly free-speech platforms, 4chan and Kiwi Farms, have filed a lawsuit in the U.S. District Court for the District of Columbia against the UK’s communications regulator, Ofcom, accusing it of attempting to impose unconstitutional British censorship laws on American websites.

The Details:

• The suit challenges the UK’s Online Safety Act, arguing it unlawfully imposes British censorship laws on U.S.-based platforms, violating the First Amendment.

• Ofcom’s demands include content moderation, user identity verification, and risk assessments, which the plaintiffs argue infringe on American constitutional protections.

• The UK regulator has sent legal notices and threatened $24 million fines or 10% of global revenue for non-compliance, despite lacking jurisdiction over U.S. platforms.

• Ofcom’s enforcement actions bypass the UK-U.S. Mutual Legal Assistance Treaty, constituting an attack on American civil liberties, free speech experts say.

What’s Next: The lawsuit seeks to block Ofcom’s demands and secure a permanent injunction against future enforcement attempts in the US. A ruling favoring 4chan and Kiwi Farms could embolden other US platforms to resist foreign censorship laws, potentially reshaping how American companies address extraterritorial regulatory pressures.

Freedom Roundup

🏛️ Policy & Culture

• ⭐ Editor’s Pick: America First Legal filed a lawsuit against Shell USA, alleging that the company's DEI workforce reorganization unlawfully targeted white employees. (AFL)

• 24 Republican state financial officers urged the SEC to revoke Foreign Private Issuer status for companies based in adversarial nations, particularly China. (BN)

• The Pentagon's DOGE unit is set to review approximately 400,000 contracts and grants as part of an initiative to identify and eliminate inefficiencies. (BBG)

• Rep. Jim Jordan (R-OH) invited Reform UK leader Nigel Farage to testify at a House Judiciary Committee hearing on September 3 to discuss how the UK's Online Safety Act may infringe upon Americans' free speech rights. (WEX)

That's a wrap! You're officially caught up on all things tech, markets and freedom. Subscribe to CAPITAL below.

Feel free to reply to this email with any questions and/or comments.

DISCLAIMER: The CAPITAL newsletter is for informational purposes only and does not constitute financial, investment, or professional advice. Readers should conduct their own research and consult a qualified financial advisor before making investment decisions. The CAPITAL newsletter and its owner and operator, Josh Caplan, are not liable for any loss or damage resulting from reliance on this information. The CAPITAL newsletter is solely owned and independently operated by Josh Caplan, separate from any employer affiliations.