Bloomberg Businessweek Jack Dorsey’s Block Slashes Nearly Half Its Staff in AI Bet
Feb 26, 2026
Jaime Tarabay, national security reporter covering congressional probes and closed-door testimony. Chris Miller, historian and author of Chip War, analyzing semiconductor geopolitics. They discuss Block’s massive AI-driven staffing cuts and the rise of internal AI tools. Then they explore how AI is reshaping chip demand, supply chains, export controls, and long-term industrial policy.
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Investors Reward Big Cost Cuts If Growth Persists
- Block framed the layoffs as proactive and coming from strength to satisfy investors focused on cost cuts plus continued growth.
- After the announcement the stock jumped ~22.5% in aftermarket trading.
AI Creates A Step Change In Chip Demand
- Chris Miller says AI has created a step change in demand for data-center chips similar to the smartphone transition.
- He highlights that despite scale-up, key supply remains concentrated in Taiwan and elsewhere in Asia.
Inference Is Profitable While R&D Is Expensive
- Miller argues AI is already delivering capabilities and that serving AI inference today is profitable while R&D for next-generation models remains costly.
- He warns CEOs not to opt out of AI investment risk being left behind.