29/05/2026

BIZ & FINANCE FRIDAY | MAY 29, 2026

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AI chiefs walk back job apocalypse warnings

Snowflake boosts forecast, signs US$6b AWS deal

SAN FRANCISCO: Snowflake raised annual product revenue forecast on Wednesday, as enterprises ramped up spending on AI applications and shifted more data workloads to its cloud platform, sending its shares surging 36% in extended trading. The company also signed a five-year deal worth US$6 billion (RM24 billion) with Amazon Web Services to use AWS’ Graviton processors and AI infrastructure, as their partnership deepens around enterprise AI. The latest deal will include deeper product integrations around generative and agentic AI, expanded go-to-market efforts through AWS Marketplace and workload migrations aimed at helping businesses move from experimenting with AI projects to using them routinely. “The new deal with Amazon adds another element to the growth path for Snowflake,“ said Gil Luria, managing director of D.A. Davidson. “It allows Snowflake to take an even bigger role in their customers transition to AI and aligns them even more with their biggest partner.” Snowflake has benefited from surging enterprise demand for its core data warehousing products, with migrations from legacy systems and increased use of machine learning tools adding momentum. It has seen strong adoption of its tools such as Cortex Code and Snowpark. The company raised its product revenue forecast for fiscal 2027 to US$5.84 billion, from US$5.66 billion projected earlier. “Based on a combination of strength in our core data platform business and meaningful uplift from AI capabilities ... we are increasing our FY27 outlook,“ CEO Sridhar Ramaswamy said on a post-earnings call. Snowflake expects second-quarter product revenue to be between US$1.415 billion and US$1.420 billion, compared with analysts’ average estimate of US$1.37 billion, according to data compiled by LSEG. Its first-quarter revenue came in at US$1.39 billion, above the estimate of US$1.32 billion. – Reuters Amazon greenlights AI-generated shows LOS ANGELES: Amazon MGM Studios announced on Wednesday it has greenlit the first three children’s shows that were created under a new initiative to use artificial intelligence (AI) in content development. The GenAI Creators Fund pays filmmakers, digital creators and startups to use AI to develop their projects in a short time frame. Punky Duck series director Jorge Gutierrez said he is used to spending two years making a pilot, but his new show was greenlit to run on Amazon after just two months. “The best way I can describe it is, it’s like you have sex and then someone hands you the baby,“ Gutierrez said at the annual AI on the Lot Conference, where the first images of the approved animated series were shown. “It’s pretty crazy.” Two more projects – Diana Music Hunters from Albie Hecht and Cupcake & Friends from Buzzfeed Studios – were also greenlit in a couple of months, reflecting a new approach from major studios. Hollywood’s unions and artists have raised concerns about the use of AI, with creatives, writers and actors fearing they could be replaced by digital facsimiles. AI Studios chief at Amazon MGM Albert Cheng told the conference that the technology will not eliminate jobs, it will actually reduce costs and timelines to make it possible to increase the number of productions. But Cheng acknowledged “AI is addictive“, adding that it’s important for humans to make sure they don’t“succumb and let our brains go to waste”. – AFP

WASHINGTON: The most prominent figures in artificial intelligence are stepping back from dire predictions about mass unemployment, as the industry faces growing public hostility over AI’s promised transformation of the workplace. Nvidia chief executive Jensen Huang and OpenAI CEO Sam Altman, whose comments have stoked anxiety about AI’s potential effects on society, are now arguing that doom-laden warnings were overblown or, in some cases, disingenuous. Speaking to Channel News Asia on Monday, Huang took direct aim at fellow executives who have publicly blamed AI for workforce reductions. “The narrative that connects AI to job loss, for many of the CEOs that are doing it – it is just too lazy,” he said. “AI has just arrived. How is it possible they’re already losing jobs?” Huang, who has long argued that artificial intelligence will create as many jobs as it displaces, pushed back against the doom-and-gloom forecasts of some industry insiders, saying that the recent wave of o Industry faces growing public hostility over workplace transformation

even if 90% of jobs are automated, the remaining 10% would be handled by human workers who would be vastly more productive. Amodei has long drawn criticism from fellow industry figures who regard him as an AI doomer, even as Anthropic has become a highly successful company, with Huang saying last year he “pretty much disagrees with almost everything he says”. The reversals from rivals Altman and Amodei come as their companies – OpenAI and Anthropic – are expected to embark on high-profile IPOs that will require broad buy-in from investors to succeed. But earlier doom-laden statements have now come to haunt the AI industry as the public, notably in the United States, voices serious discontent in polling over the disruption that tech companies and political leaders predict from AI. Federal Reserve governor Lisa Cook warned on Wednesday that the full effects of AI on employment may still be ahead. “We could be approaching the most significant reorganization of work in generations,” she said in a speech at Stanford University, adding that AI-related job losses could precede any gains – even if the overall long-run picture remains positive. Most economic institutions, including the European Central Bank, say that artificial intelligence has had only minor effects on employment so far. – AFP

corporate layoffs was not driven by AI. “How is it possible that AI became productive and useful only six months ago, and they were somehow laying people off two years ago because of AI? It doesn’t make any sense,” he said. “It was just a way for them to sound smart, and I really hate that. I think we’re scaring people and that’s irresponsible.” Last week, Standard Chartered announced plans to axe thousands of jobs by 2030 as artificial intelligence replaces employees in a range of administrative roles. The tech firm behind social network Snapchat cut 1,000 jobs last month, saying AI is boosting efficiency as it pushes towards profitability. Altman, meanwhile, offered a mea culpa. Speaking at the Commonwealth Bank of Australia’s Accelerate AI Conference in Sydney, he said rapid AI development would not produce the “jobs apocalypse that some of the companies in our space advocate or talk about” – including his own. “I thought there would have been more impact on entry-level white-collar jobs being eliminated by now than has actually happened,” he told the conference on Tuesday, as reported by The Australian . “I think I understand more about why that wasn’t done – obviously gratefully – but that is an area where my intuitions were just off.” Anthropic boss Dario Amodei has also softened his tone, predicting recently that

The Meta logo marks the entrance of Facebook corporate headquarters in Menlo Park, California. – AFPPIC

Meta launches paid subscriptions for its apps SAN FRANCISCO: Meta Platforms on Wednesday launched paid subscription plans for its flagship apps, marking a major push by the tech giant to diversify beyond its longtime reliance on advertising revenue. investor scrutiny over its massive AI spending. The company has projected capital expenditure – mainly for AI data centres – of between US$125 billion and US$145 billion for the year. Meta’s stock rose nearly three per cent on the news.

audience reach and profile customisation options. WhatsApp Plus focuses on personalisation, including premium stickers, custom ringtones and app themes. Gleit said the company intends to eventually consolidate its various offerings under a single brand called Meta One. Meta in 2023 launched ad-free, paid versions of Facebook and Instagram in Europe to comply with EU data privacy legislation, giving users a choice between a free, ad-supported experience and a paid, ad-free one. – AFP

Meta head of product Naomi Gleit announced the move in a video posted to Instagram. Gleit said the company is rolling out Facebook Plus, Instagram Plus and WhatsApp Plus globally, with more plans in the works for businesses, creators and artificial intelligence products. The move comes as Meta Platforms faces

According to reports, Instagram Plus and Facebook Plus will be priced at US$3.99 per month, while WhatsApp Plus will cost US$2.99 per month. Instagram Plus and Facebook Plus will unlock extra features including better analytics, story rewatch statistics, wider