Barclays Cuts Jobs for AI Shift Amidst Meta's $145B Capex

Major companies are pouring money into AI infrastructure, and the spending shifts are reshaping workforces. Barclays is cutting jobs to redirect funds toward AI capabilities, reflecting a broader trend where firms reallocate resources once used for hiring toward emerging technology. Concerns about a potential AI bubble are growing as these changes accelerate across industries.

SpaceX is taking a different path from Meta when it comes to funding AI build-outs. JPMorgan analyst Doug Anmuth says SpaceX is not raising equity for AI efforts and instead relies on debt. CFO Bret Johnson guided to $35 billion to $40 billion in capital expenditures for the fourth quarter, up sharply from $19.6 billion in Q3 and $10.1 billion in Q1. SpaceX ended the quarter with $36.1 billion in debt.

Market jitters around AI spending have rattled investors recently. The Nasdaq fell over 2% and the S&P 500 declined 1.2% as concerns about heavy capital spending mounted. Meta slumped nearly 7% and reported negative free cash flow of $2.12 billion, with full-year capex expected between $135 billion and $145 billion. Bond yields fell below 5% for the first time in about a month.

Not everyone sees the pullback as a bad sign. James Thorne, Chief Market Strategist at Wellington Altus, argues the recent selloff could actually extend the AI boom. He calls it a natural and healthy correction, noting that falling share prices do not mean falling demand for computing power. Restraint, he says, prevents excess and keeps momentum going longer.

On the earnings front, several AI-related stocks may be undervalued. Oracle, TSMC, Microsoft, Micron, and NVIDIA all show strong growth trajectories. Analysts expect NVIDIA earnings per share to rise about 95% in fiscal 2027, while Micron could see a roughly 134% increase. Oracle projects revenue growth near 34% in fiscal 2027 and 46% in fiscal 2028.

Salesforce is another name drawing attention. Its AI product Agentforce has ARR passing $1.5 billion, up 240% year over year. Combined Agentforce and Data 360 ARR reached about $3.9 billion, and Agentic Work Units hit 3.2 billion in the quarter, up 97% sequentially. Despite this growth, the stock sits near a 52-week low, and only 5% of eligible knowledge workers have moved to premium editions.

Microsoft is also making strides in practical AI applications. Researchers developed an AI orchestrator that outperforms generalist doctors in diagnosing complex medical cases. Tested on over 300 difficult medical dilemmas, the tool was more than twice as accurate as human physicians by coordinating which tests to order and analyzing results. This suggests better diagnostics at lower cost.

In other AI news, Checkmarx Fusion addresses a growing security challenge as developers use AI to write code faster. The tool combines AI with rules-based analysis to deliver consistent and accurate vulnerability findings, reducing false alarms and saving money by avoiding costly AI models for simple tasks. Meanwhile, the U.S. Navy has ordered all personnel to stop using the term "artificial intelligence" and replace it with "Super Intelligence" or SI in all official communications, with commanders required to review materials within 30 days.

Key Takeaways

Barclays is cutting jobs to redirect spending toward AI capabilities, reflecting a wider industry shift
SpaceX guided to $35 billion to $40 billion in Q4 capital expenditures and is funding AI via debt rather than equity
Meta reported negative free cash flow of $2.12 billion and expects full-year capex of $135 billion to $145 billion
The Nasdaq fell over 2% amid AI spending fears, but strategist James Thorne calls the pullback a healthy correction
NVIDIA earnings per share are expected to rise about 95% in fiscal 2027, while Micron could see a 134% increase
Salesforce Agentforce ARR passed $1.5 billion, up 240% year over year, yet the stock sits near a 52-week low
Microsoft's AI orchestrator was more than twice as accurate as human doctors in diagnosing complex medical cases
Checkmarx Fusion combines AI with rules-based analysis to reduce false alarms in code security
The U.S. Navy now requires all personnel to use "Super Intelligence" or SI instead of "artificial intelligence"
SpaceX ended the quarter with $36.1 billion in debt while pursuing AI build-outs without raising equity

Corporate AI spending changes lead to job cuts

Companies are spending heavily to build AI infrastructure, which is changing how they allocate resources. This shift is causing some workers to lose their jobs. Money once used for hiring is now being redirected toward boosting AI capabilities. Concerns about a potential bubble in the AI sector are growing alongside these changes.

Barclays cuts jobs to fund AI spending

Barclays is redirecting its spending toward AI and trimming its workforce. The bank is shifting money once spent on workers to boost AI capabilities. This move reflects a broader trend where companies adapt to growing demand for AI. Job cuts in some sectors are tied to massive spending on artificial intelligence.

Barclays invests in AI while reducing staff

Barclays is investing in AI as part of a wider industry shift toward emerging technologies. The bank is trimming its workforce to fund this transition. Growing demand for AI is forcing companies to adapt and spend more on the technology. This decision could have significant implications for the banking industry.

SpaceX may not raise money for AI like Meta

SpaceX is not considering raising equity to fund its AI efforts, according to JPMorgan analyst Doug Anmuth. The company guided to $35 billion to $40 billion in capital expenditures for the fourth quarter. This is a big step up from $19.6 billion in the third quarter and $10.1 billion in the first quarter. CFO Bret Johnson said the company has available pools of capital on the debt side.

SpaceX chooses debt over equity to fund AI build-out

SpaceX will not follow Meta's playbook to fund its AI build-out, JPMorgan says. The company is not raising equity and instead has pools of capital available on the debt side. SpaceX ended the quarter with $36.1 billion in debt. The company's CFO Bret Johnson guided to $35 billion to $40 billion in capital expenditures for the fourth quarter.

5 undervalued AI stocks to watch

Some investors believe the market is undervaluing five AI stocks. Oracle, TSMC, Microsoft, Micron, and NVIDIA all show strong growth in earnings and revenue. Analysts expect NVIDIA earnings per share to rise about 95% in fiscal 2027. Micron could see earnings per share rise about 134% in fiscal 2027. Oracle expects revenue growth of about 34% in fiscal 2027 and 46% in fiscal 2028.

AI spending fears rattle markets before Halloween

Markets dropped as investors worried about AI spending. The Nasdaq fell over 2% and the S&P 500 declined 1.2%. Meta slumped nearly 7% and reported negative free cash flow of $2.12 billion. Meta expects full-year capex of $135 billion to $145 billion. Bond yields fell below 5% for the first time in about a month. Elon Musk has committed roughly $366 million to the 2026 election cycle.

AI beta testers wanted for business automation

A company is seeking beta testers for its Agentic AI system. The system can automate email, billing, bookkeeping, taxes, and client follow-ups. Business owners with a budget of $200 per month who can onboard within a week are eligible. Beta testers will get free access to the unreleased software. They can provide feedback to help shape the product.

AI selloff could extend the boom, strategist says

James Thorne, Chief Market Strategist at Wellington Altus, said the recent pullback in AI stocks could help extend the AI boom. The Nasdaq 100 fell 2.90% as AI-linked stocks led a tech selloff. Thorne called it a natural and healthy correction. He believes restraint prevents excess and gives the AI boom more time to run. He said falling share prices do not mean falling demand for computing power.

Salesforce AI growth may be undervalued by market

Salesforce AI products are growing at triple-digit rates while the stock sits near a 52-week low. Agentforce ARR passed $1.5 billion, up 240% year over year. Combined Agentforce and Data 360 ARR reached about $3.9 billion. Agentic Work Units hit 3.2 billion in the quarter, up 97% sequentially. The 24/7 Wall St. price target for Salesforce is $346.52 with 42.6% upside. Only 5% of eligible knowledge workers have moved to premium editions.

Checkmarx Fusion combines AI and rules for better security

Developers are using AI to write code faster, but securing that code is becoming difficult. AI tools often give inconsistent results, finding different issues when run multiple times on the same code. Checkmarx Fusion solves this by combining AI with rules-based analysis to ensure accurate and consistent findings. This hybrid approach reduces false alarms and helps teams fix real vulnerabilities more efficiently. The system also saves money by avoiding the high costs of using only advanced AI models for simple tasks.

Navy orders all personnel to use Super Intelligence instead of AI

The U.S. Navy has issued a new order requiring all members to stop using the term artificial intelligence. President Donald Trump announced that the term should be replaced with Super Intelligence or the abbreviation SI. This policy applies to all official documents, websites, and public communications within the Navy immediately. Commanders must review all existing materials for compliance within 30 days and submit reports on their progress. The change does not require updating old contracts or laws until Congress passes new amendments.

Microsoft AI tool diagnoses complex medical cases better than doctors

Microsoft researchers published a study showing their new AI orchestrator outperforms generalist doctors in diagnosing complex cases. The tool coordinates the diagnostic process by deciding which tests to order and analyzing the results. It was tested on over 300 highly unusual and confusing medical dilemmas. The AI model was found to be more than twice as accurate as human physicians in these difficult situations. This advancement suggests the tool can provide better diagnoses at a lower cost.