AI Newsletter

PwC's new AI Performance Report reveals extreme concentration: a small group of growth-oriented companies captures three-quarters of all economic AI returns, while the majority barely benefits. The decisive difference lies not in productivity gains, but in the ability to deploy AI for revenue growth. For the market, this means: AI massively reinforces existing competitive advantages instead of democratizing them.

TSMC is expected to report another record profit in Q1 2026 according to Reuters – with net profit growth of around 50% year-over-year. The sustained demand for AI chips shows that the hardware layer continues to form the foundation of the AI boom despite software hype. For investors, this underscores that chip infrastructure remains the most stable beneficiary of the AI wave.

The NYT documents massive escalation in military AI arms race: China, the USA, and Russia are expanding AI-powered weapons systems at an unprecedented pace. The buildup affects autonomous weapons platforms, intelligence infrastructure, and cyber operations. The development increases the risk of uncontrolled AI escalation and puts Western tech industry under pressure to take a stance on security policy.

In the first quarter of 2026, the global technology industry eliminated more than 71,447 positions – a structural shift, not cyclical. Companies are doubling their AI investments while simultaneously cutting workforce, as illustrated by Amazon's parallel AWS AI offensive and mass layoffs. Polymarket rates tech layoffs in 2026 at 90% probability of continuing to rise.

AI triggered a founding wave in 2026: LinkedIn profiles with 'Founder' title increased by 300% according to analysis, fueled by declining barriers to entry through AI tools. In parallel, the NYT story about Medvi ($1.8B startup with $20k seed capital) shows that solo founders with AI can reach unicorn status. This democratization of entrepreneurship is reshaping competitive dynamics in nearly every industry.