Plus: some hedge funds are making big bucks from chipmaker and AI hardware stocks. And Cisco Systems is cutting thousands of jobs to free up cash for AI spending. Danny Lewis hosts.
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[00:00:00] [SPEAKER_02] Organizations are trying to strike a balance between AI adoption and still putting their people first. But WorkHuman founder and CEO Eric Mosley says taking a human-centric approach is vital to getting the most out of new technologies. Join WorkHuman later to learn why.
[00:00:16] [SPEAKER_00] Here's your morning TNB Tech Minute for Thursday, May 14th. I'm Danny Lewis for The Wall Street Journal. Chip maker Cerebras Systems is kicking off a hotly anticipated year for artificial intelligence IPOs. The company is set to start trading today after it priced its initial public offering far above expectations at $185 late last night. That price gives Cerebras a market capitalization of about $40 billion.
[00:00:41] [SPEAKER_00] The company also boosted the number of shares in the offering from $28 million to $30 million after strong investor demand. Speaking of chips, some hedge funds are making a killing in the stocks of chip makers and other AI hardware companies. Firms like Steve Cohen's Point72, Whale Rock Capital, and Seligman Investments posted strong returns for April thanks in part to rallies and semiconductor stocks and related equipment makers.
[00:01:06] [SPEAKER_00] Helping make last month the best for stock picking funds since December 1999 according to research firm Pivotal Path. That's thanks to the rapid adoption of AI coding tools and agents, which brought along a broad demand for computing resources like central processing units and memory chips. Also, Cisco Systems is cutting thousands of jobs in order to free up cash for investing in AI. The tech conglomerate plans to eliminate fewer than 4,000 jobs this quarter, less than 5% of its workforce.
[00:01:36] [SPEAKER_00] In a blog post, CEO Chuck Robbins said layoff notifications will start going out today. The restructuring is expected to cost up to $1 billion in severance, one-time termination benefits, and other expenses. Cisco announced the job cuts alongside its latest quarterly earnings report, in which it raised its full-year guidance on the back of big revenue and earnings gains. That's your TNB Tech Minute. Join us again this afternoon for more.
[00:02:03] [SPEAKER_02] What can leaders do to keep people at the center of the workplace in the AI era? Here's WorkHuman founder and CEO Eric Mosley.
[00:02:11] [SPEAKER_01] The reality now with AI and this type of data is we're entering into an era where the human is left behind, and to be able to retain your very best humans is literally the only thing that's going to separate you from your competitors. Because you and your competitors are going to have the same AI tools. It's just your humans against their humans. So you have to keep your best people.
[00:02:35] [SPEAKER_02] Learn more about how companies can identify leadership potential with AI technologies at WorkHuman.com.
[00:02:41] [SPEAKER_01] This content was created by Custom Content from WSJ, a unit of the Wall Street Journal Advertising Department.